By compelling large corporations to disclose their emissions, the state hopes to foster a greater understanding of the environmental impact of major businesses operating within its borders. Credit: Shutterstock.

Under the Climate Corporate Data Accountability Act, also known as the Senate Bill 253 law would mandate businesses operating in California that generate annual revenues exceeding $1bn to report a wide range of emissions that contribute to global warming, including Scope 3.

The legislation, introduced by California senators Scott Wiener, Lena Gonzalez and Henry Stern tasks the California Air Resources Board (CARB) with the development and adoption of regulations by 1 January 2025, aimed at making these emissions disclosures a reality.

Newsom’s letter to the members of othe California State Senate on 7 October praises California’s “continued leadership with bold responses to the climate crisis, turning information transparency into climate action.”

Despite its commendable goals, he had concerns regarding the feasibility of the implementation deadlines set forth in the legislation and argued that the reporting protocol could lead to inconsistent reporting practices among businesses affected by the law.

Newsom acknowledged these concerns and said: “I am directing my administration to work with the bill’s author and the legislature next year to
address these issues.”

California emission disclosure bill faces opposition

However, Reuters reported on 18 September that Newsom acknowledged there had been “a lot of opposition” to the bill with the news publication adding the California Chamber of Commerce has concerns, claiming it said the bill “would increase costs and paperwork for firms”.

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The American Apparel & Footwear Association (AAFA) voiced its support for California’s proposed greenhouse gas emissions law in August as it aligned with the AAFA’s THREADS protocol, which is aimed at assisting policymakers in ensuring successful solutions to advance sustainability and social responsibility in the fashion industry.