Governor Newsom has announced his intent to sign into law the nation’s most extensive greenhouse gas (GHG) emissions disclosure and climate-related financial risk reporting legislation — while acknowledging the need for some cleanup language. There are two bills:
- SB 253, which requires public and private entities doing business in California with more than US$1 billion in revenue to report direct (Scope 1) and indirect (Scopes 2 and 3) greenhouse gas (GHG) emissions
- SB 261, which requires companies doing business in California with at least US$500 million in revenue to report on their climate-related financial risks
According to the California Senate Rules Committee, “doing business” in California is broadly defined as “engaging in any transaction for the purpose of financial gain within California, being organized or commercially domiciled in California, or having California sales, property or payroll exceed specified amounts: as of 2020 being $610,395, $61,040, and $61,040, respectively. (Revenue and Tax Code (RTC) § 23101).”…