California Governor Gavin Newsom is set to sign a groundbreaking climate bill requiring major companies to publicly disclose their greenhouse gas emissions. The legislation, the first of its kind in the nation, will mandate about 5,000 companies operating in California to report both direct and indirect emissions, affecting businesses with over $1 billion in annual revenue. The move is seen as significant, given California’s influence on national and global trends, especially in climate-related policies.

The law, expected to be signed by Governor Newsom, is a response to growing calls for transparency in corporate emissions, enabling investors to make informed decisions and potentially redirect capital away from high-emission industries. Despite opposition from the California Chamber of Commerce and internal concerns, Newsom’s commitment underscores California’s leadership in climate action.

The legislation complements another new law requiring companies with revenues over $500 million to report climate-related risks, reflecting a broader trend toward environmental accountability in the corporate sector. While praised by climate advocates, the laws face opposition from business groups citing compliance costs and administrative burdens.

The move sets a precedent for other states and potentially the federal government to follow suit, although challenges remain regarding implementation and industry-wide acceptance. Overall, the initiative represents a significant step toward integrating climate considerations into corporate governance and financial decision-making processes.

https://www.nytimes.com/2023/09/17/climate/california-climate-disclosure-law.html