California has a lot of big companies that export everything from electronics to transportation equipment to food, and most every major company in the country does business in the state, which is home to about one in nine Americans. Newsom often boasts about the state’s status as one of the world’s largest economies.
The legislation would make large companies disclose their own greenhouse gas emissions and emissions released indirectly from sources including employee business travel, the transport of products and waste disposal. For example, a major retailer would have to report emissions from powering its own buildings, as well as those that come from delivering products from warehouses to stores.
The chamber, which advocates for businesses across the state, is leading a coalition that includes the Western States Petroleum Association, the California Hospital Association and agricultural groups, in opposing the bill. They argue many companies don’t have enough resources or expertise to accurately report emissions and say the legislation could lead to higher prices for people buying their products.
Supporters of the disclosure bill acknowledge it’s not a “perfect” solution that would guarantee flawless emissions reports. But they say it’s a starting point. California Environmental Voters, which supports the bill, says the legislation would put pressure on companies to move faster in lowering their emissions.