Boom – Climate Week NYC is here and California Governor Gavin Newsom has kicked off the event with a major climate announcement that will certainly be welcomed by those pushing to see greater climate action.
Gov Newsom has committed to sign Senate Bill 253, California's nation-leading climate disclosure legislation and the nation's first comprehensive greenhouse gas emissions disclosure requirement.
What is Senate Bill 253 and 261?
Senate Bill 253 (SB 253) is the US's first ever economy-wide mandatory climate disclosure policy. The bill focuses on greenhouse gas (GHG) emissions disclosure, while Senate Bill 261 (SB 261) is focused on climate risk disclosure.
Both bills were passed in the California State Assembly last week, cementing California's position as a climate leader by signing these bills into law.
- SB 253 will require companies that do business in California
and earn at least $1 billion annually to report climate pollution
across their supply and value chains. SB 261 will require companies
with revenue over $500 million to report on their climate-related
risks.
- Both bills apply to public and private companies over certain
revenue thresholds.
- SB 253 will apply to more than 5,300 companies and SB 261 will cover more than 10,000 companies.
The bills complement the US Securities and Exchange Commission's proposed rule requiring climate disclosure for public companies, and the International Sustainability Standards Board's (ISSB) global standards, which are expected to be finalised this year.
What's next?
Beginning January 1 2026, companies will need to publicly release a report biennially outlining climate-related financial risks and approaches used to reduce and adapt such risks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.