California Governor Gavin Newsom is set to sign two groundbreaking climate disclosure bills into law. SB 253, the "Climate Corporate Data Accountability Act," and SB-261, "Greenhouse gases: climate-related financial risk," will require large U.S. companies to disclose their complete value chain emissions and report on climate-related financial risks and adaptation measures. SB 253 will impact over 5,300 businesses with revenues exceeding USD1bn, requiring them to report on emissions from all scopes, including direct, indirect, and those linked to supply chains, business travel, employee commuting, procurement, waste, and water usage. SB 261 mandates U.S. companies with revenues over USD500mn to disclose climate-related financial risks and mitigation measures, aligning with the TCFD framework. These laws represent significant mandatory climate reporting requirements in the U.S., with potential implications for other U.S. companies and forthcoming SEC climate disclosure rules.

Source: ESGToday