Major corporations, from oil and gas companies to retail giants, in California will be required to disclose their direct greenhouse gas emissions as well as emissions from activities such as employee business travel. The legislation, passed by California lawmakers, is the most sweeping mandate of its kind in the nation.
Under this legislation, thousands of public and private businesses operating in California and making more than $1 billion annually will be required to report their direct and indirect emissions. The goal of this legislation is to increase transparency and encourage companies to evaluate and reduce their emissions.
Supporters of the bill argue that it is necessary to address the climate crisis and hold companies accountable. Major companies like Patagonia and Apple have expressed support for the legislation, as well as Christiana Figueres, the former executive secretary of the United Nations convention behind the 2015 Paris climate agreement.
However, the bill also faces opposition from other businesses and groups in the state who argue that it will be burdensome and lead to higher prices for consumers. The California Chamber of Commerce, along with other organizations such as the Western States Petroleum Association and the California Hospital Association, opposes the bill.
If the legislation receives final approval from the Senate, it will go to Democratic Governor Gavin Newsom, who has not yet taken a position on the bill. The California Air Resources Board would need to approve regulations by 2025 to implement the bill’s requirements, with companies starting to disclose their emissions in 2026.
This legislation sets a precedent for other states and may put pressure on federal regulators to take similar action. While the bill is not without its flaws and challenges, supporters believe it is a necessary step towards addressing climate change.
