Companies doing business in California might have to report their carbon emissions soon. Two of the state’s landmark climate disclosure bills were approved by lawmakers last week, and Gov. Gavin Newsom said over the weekend he intends to sign them into law despite the need for “some cleanup on some little language.
Many companies already voluntarily report their carbon emissions upon investor demand, but it’s currently not required by law and there isn’t a standardized framework to do so. The California laws, if enacted, would be the first of their kind in the nation, and their repercussions would reach beyond the state’s borders.
Climate disclosure has long been a contentious topic. Climate policy advocates believe that transparency in greenhouse gas emission is essential for financial markets to evaluate a company’s role in climate change as well as the investment risk that comes with complacency.
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