California is not waiting around for nationwide corporate emissions disclosure rules, having moved ahead to adopt laws requiring companies to disclose climate-related data. Even though this is state legislation, the impact of these new climate disclosure rules goes well beyond California’s borders. As we explain in this new article, we see California’s disclosure rules having ‘long arms’ in three key ways:
- They set the first U.S. corporate climate disclosure standard for public AND private companies.
- By requiring Scope 3 emissions disclosure, California’s rules can reach every part of a company’s value chain.
- Many US companies headquartered outside California can fall under its scope, both U.S. as well as foreign companies.
As ESG Book’s Isabel Verkes explains, these new disclosure rules have far-reaching consequences for transparency on corporate climate-related information. See the article here.