California Governor Gavin Newsom has announced that he will sign a bill that will require large businesses to publicly disclose their carbon emissions, including scope 3 or supply chain emissions. This law, known as SB253, will impact businesses in California that earn over a billion dollars a year in revenue. It is estimated that this will apply to more than 5,300 businesses, including multinational corporations.
California will become the first location in the United States to mandate corporate carbon accounting. This comes at a time when the Securities and Exchange Commission (SEC) is considering how to regulate corporate climate disclosures. The SEC has yet to determine whether it will include scope 3 emissions in its regulations. Scope 3 emissions are the largest contributor to a company’s greenhouse gas emissions and come from its suppliers.
Governor Newsom praised California’s leadership in climate issues and emphasized the state’s history of being at the forefront of innovation. California has already implemented regulations on tailpipe emissions and low-carbon fuel standards, setting an example for the rest of the nation.
Newsom expressed his gratitude to large businesses such as Apple and Salesforce, which have publicly supported the climate disclosure regulations. He commended them for recognizing the importance of addressing greenhouse gas emissions and pledged to sign SB253 into law.
Before signing the bill, Newsom mentioned the need to review and refine some of the language in it. However, he remained committed to pushing forward with this important legislation that will hold businesses accountable for their environmental impact.
Overall, this initiative showcases California’s ongoing efforts to combat climate change and sets a precedent for other states and countries to prioritize corporate carbon accounting and disclosure.
Sources:
– “SB253 will require businesses in California that earn over a billion dollars a year in revenue to publicly declare their greenhouse gas emissions” – [Source Name]
– “The law will make California the first location in the U.S. to require corporate carbon accounting, and comes as the the SEC is considering how to regulate corporate climate disclosures” – [Source Name]
– “Some large businesses in the state, like Apple and Salesforce, have voiced their support for the climate disclosure regulations” – [Source Name]