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California made history with first-in-the-nation legislation that will require companies to provide standardized and consistent climate-related disclosures. The two bills that passed in 2023, SB 253 and 261, will require thousands of companies doing business in California to disclose their scope 1, 2, and 3 greenhouse gas emissions and climate-related financial risk information.
SB 253, now known as the Climate Corporate Data Accountability Act, will require companies that do business in California and earn at least $1 billion annually to report climate pollution across their supply and value chains.
SB 261, the Climate-Related Financial Risk Act, will require companies with revenue over $500 million to report on their climate-related risks.
As a longtime advocate for standardized climate disclosure, Ceres co-sponsored SB 253 and SB 261. We equip companies with the knowledge and tools they need to reduce emissions, mitigate climate risk, and meet these new legal requirements.
These bills are part of a global movement towards mandatory and standardized climate reporting, including the SEC’s landmark climate disclosure rule, the Corporate Sustainability Reporting Directive, and forthcoming standards from the International Sustainability Standards Board.
California’s historic climate disclosure legislation was supported not only by key investors, but also by leading companies that recognized the business advantage of standardized, consistent, and economy-wide reporting rules.
