California Passess Bill for first Law in the USA to Mandate Emissions Disclosures
The state of #California has perennially been ahead of the curve when it comes to #sustainability measures, a stand-out in America not only for its dialogue and public awareness on the topic but also the action it takes.
Going back to the early 1970s, when The California #Environmental Quality Act was signed into law committing to a state-wide policy of environmental protection, California has been at the vanguard of sustainability stewardship.
It perhaps should come as no surprise, therefore, that this week California’s Senate passed a bill (by a vote of 23-7) to advance the #Climate Corporate Accountability Act, paving the way for the very first law to be enacted in America requiring companies in excess of $1B in grow annual revenue to disclose annually their #GHG #emissions.
And to be sure, this is an Act which has a serious intentions and consequences!
The mandatory disclosures are set to include not only Scope 1 emissions (i.e. those directly produced by company operations) but also Scopes 2 and 3 (i.e. respectively, indirect emissions from the generation of purchased #energy and indirect emissions that occur across the upstream and downstream value chain as a result of #business activities).
The SEC is currently looking into rules for mandatory climate risk #reporting. Investors are beating the drum. So, too, is the public. The pressure for business #leadership to advance sustainability pledges with genuine action is well and truly on.
#betterbusiness #esg #future
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