SB 253, SB 261 and AB 1305 Require Public and Private Companies Doing Business in California to Disclose Greenhouse Gas Emissions (Including Scope 3), Climate Risks and Use of Voluntary Carbon Offsets
On October 7, 2023, California Governor Gavin Newsom signed into law the Climate Corporate Data Accountability Act (SB 253), the Climate-Related Financial Risk Act (SB 261) and the Voluntary Carbon Market Disclosures Act (AB 1305). Together, these amendments to California’s Health and Safety Codes impose new and sweeping climate-related reporting obligations on companies, which are, in many respects, broader and more prescriptive than the climate-related disclosure requirements proposed by the SEC in 2022. Thousands of companies are expected to fall under the scope of SB 253, SB 261 and AB 1305, including both public and private companies, whether or not they are incorporated in California.
