California’s groundbreaking Climate Corporate Data Accountability Act, commonly known as Senate Bill 253, signed into law on October 7 by Governor Gavin Newsom, is set to ignite a climate disclosure revolution. The new law mandates that companies with an annual revenue exceeding $1 billion must unveil the extent of their greenhouse gas emissions across their operations and supply chains. However, as the Golden State embarks on this bold endeavor, it raises questions, sparks legal battles, and leads businesses to brace for a seismic shift.
California New Climate Disclosure Law : What the Law Requires
The crux of Senate Bill 253 lies in its sweeping demands on corporate transparency. Companies falling within the financial stratosphere of more than $1 billion annual revenue must divulge their Scope 1, Scope 2, and Scope 3 greenhouse gas emissions. These encompass direct operational emissions, indirect emissions from energy consumption, and indirect emissions from supply chain activities.
