California Senate Passes Bill for First Law in US Requiring Companies to Disclose all GHG Emissions
By a 23-7 vote, the California Senate has passed the Climate Corporate Accountability Act (CCAA), advancing the first law in the U.S. requiring large companies to disclose all of their greenhouse gas emissions.
Under the new legislation, companies doing business in California and generating over $1 billion in gross annual revenue would be required to disclose annually on their emissions from all scopes, including direct emissions (Scope 1), emissions from purchase and use of electricity (Scope 2), and indirect emissions, including those from the company’s supply chain (Scope 3).
Several jurisdictions across the world have announced moves towards required sustainability disclosure, including the U.S., where the SEC is currently examining rules for mandatory climate risk reporting.