The California Chamber of Commerce, along with other business groups, recently submitted proposed amendments to Governor Gavin Newsom for the state’s corporate emissions disclosure law. This law, SB 253, currently requires large corporations in California to disclose their greenhouse gas emissions. The proposed amendments aim to address concerns regarding the cost and burden of compliance with the law, particularly related to disclosing Scope 3 emissions which encompass a company’s entire value chain.
The law is unique in the nation for its inclusion of Scope 3 emissions disclosure requirements, despite the Securities and Exchange Commission deciding against including such requirements in its federal climate risk disclosure rule. The business coalition behind the proposed amendments has expressed concerns about the financial impact of complying with the law. Governor Newsom himself has also acknowledged the need for potential amendments due to cost and implementation issues with the law.
CalChamber has been advocating for amendments to the law, known as a “cleanup” legislation, since its signing last year. The proposed amendments seek to balance the need for emissions disclosure with the practical considerations for businesses operating in California. As discussions continue on how to refine the law, it remains an important piece of legislation in the state’s efforts to address climate change and reduce greenhouse gas emissions.