California’s New Climate-Related Disclosure Laws

California has enacted two groundbreaking laws, SB 253 and SB 261, mandating large companies doing business in California to disclose their greenhouse gas emissions and the financial risks they face due to climate change. SB 253, the Climate Corporate Data Accountability Act, requires companies with over $1 billion in revenue to annually report their direct and indirect emissions, while SB 261 requires businesses with over $500 million in revenue to disclose biennially climate-related financial risk and measures adopted to reduce and adapt to that risk. It is important for businesses and investors to understand these new laws, and the implications for doing business in California.

Click here to continue reading this alert including additional details and analysis on applicability of the new laws, timelines for implementation and compliance, and the California Air Resources Board’s enforcement authority.