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News > Global environmental current affairs > California requires large companies to publicly disclose carbon emissions

California requires large companies to publicly disclose carbon emissions

2023-10-09

On October 9th, California Governor Gavin Newsom signed a bill (Senate Bill No. 253) requiring all companies in California with annual revenue exceeding $1 billion to report their greenhouse gas emissions. Under this bill, major California-based companies, including Apple, Disney, Meta, Intel, and HP, will be required to disclose their carbon emissions.

Under the newly passed law, the California Air Resources Board (CARB) will establish a carbon emissions reporting system for regulated companies by January 2025. The state government initially estimates that over 5,300 companies will be affected. Required companies will be required to publicly disclose Scope 1 and Scope 2 emissions starting in 2026, and Scope 3 emissions starting in 2027.

In addition to the California state government, the U.S. Securities and Exchange Commission (SEC) is also developing federal regulations requiring publicly traded companies in the U.S. to report their carbon emissions to prevent corporate greenwashing. However, the U.S. Chamber of Commerce stated that these regulations will increase corporate operating costs and are difficult to implement in practice.

Source: BBC

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