Attorneys speculate about possible legal challenges from corporations or industry trade groups, especially with regards to First Amendment implications and preemption arguments. Protecting against compelled speech and questioning the alignment of state and federal regulations looms as a potential legal battleground.
California New Climate Disclosure Law : Companies Gear Up for Compliance
Companies venturing into compliance must grapple with the colossal scope, cost, and impact of this transformative regulation. The path to adhering to the California law, the European Union’s climate standards, and the forthcoming SEC disclosure rule may be riddled with thorny inconsistencies. The challenge lies in how companies, depending on their environmental, social, and governance (ESG) functions, track their emissions.
While some corporations possess in-house expertise to tackle these challenges, others face the prospect of hiring additional personnel or engaging third-party assistance, potentially elevating costs. Building “carbon fluency” among employees and establishing robust compliance mechanisms emerges as a critical priority.
Overcoming Scope 3 Emission Hurdles
Tracking Scope 3 emissions, which encompass indirect emissions from supply chains, poses a formidable challenge. The intricacies of estimating these emissions create a daunting task for companies, leading to concerns over the accuracy of their disclosures. This is a particularly thorny issue, with a possible lack of sophistication in current methodologies to estimate Scope 3 emissions accurately.
