Compliance cost concerns raised as California enacts climate disclosure laws

The governor of California signed off on a pair of bills containing requirements for large businesses operating in the state to make disclosures regarding their climate-related risks and impacts, though not without mentioning work to be done on the compliance ramifications associated with each law.

Gov. Gavin Newsom approved the “Climate Corporate Data Accountability Act” (SB 253) on Saturday. The bill directs the California Air Resources Board to establish by 2025 regulations requiring businesses with total annual revenue of more than $1 billion to disclose greenhouse gas emissions each year to a reporting organization contracted by CARB.

Newsom also signed a separate bill (SB 261) that will require California businesses with more than $500 million in annual revenue to develop a report on their climate-related financial risks.