California lawmakers approve nation’s most sweeping emissions disclosure rules for big business

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Major corporations from oil and gas companies to retail giants would have to disclose their direct greenhouse gas emissions as well as those that come from activities like employee business travel under legislation passed Monday by California lawmakers, the most sweeping mandate of its kind in the nation.

The legislation would require thousands of public and private businesses that operate in California and make more than $1 billion annually report their direct and indirect emissions. The goal IS/WAS to increase transparency and nudge companies to evaluate how they can cut their emissions.

If the Senate gives the legislation final approval, it will head to Democratic Gov. Gavin Newsom, who declined to share his position on the bill when asked last month. His administration’s Department of Finance opposed it in July, saying it would likely cost the state money that isn’t included in the latest budget. Newsom has advanced California’s role as a trendsetter on climate policies by transitioning the state away from gas-powered vehicles and expanding wind and solar power.

The U.S. Securities and Exchange Commission proposed rules that would make public companies disclose their emissions, up and down the supply chain. But the California bill would go beyond that, by mandating that both public and private companies report their direct and indirect emissions. 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.

 

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