The “California effect” is in motion yet again, advancing environmental transparency for the good of the nation and the rest of the world. With the passage of SB 253 and SB 261 through the state legislature, California essentially now requires major corporations that do business in the state to disclose their greenhouse gas (GHG) emissions and provide other key climate-related financial risk data to the public.
It’s a remarkable move, notably going even further than the proposed rule set forth by the SEC last year – unlike the SEC’s disclosure rule, California’s bills SB 253 and SB 261 would include both public and private companies, impacting those worth $1 billion and $500 million in revenue respectively.
However, although they have broad global impact, as CDP data shows, these bills won’t be nearly as burdensome to companies as opponents may make them out to be.
California is the fourth-largest economy in the world, already operating as a major policy player on the global stage that makes economic waves worldwide. In passing these dual bills, California is bolstering an already fast-rising trend of mandatory disclosure policy. Read more.