California Governor Newsom Signs Groundbreaking Corporate Climate Disclosure Bills

California Governor Gavin Newsom has signed two bills that will require large corporations operating in the state to disclose their carbon footprints and climate-related financial risks starting in 2026. The laws, SB 253 and SB 261, are the most ambitious climate bills in California this year and will go beyond proposed federal climate disclosure rules. The California Air Resources Board will implement the laws, with regulations expected to be passed by January 2025. However, there may be a need for additional legislation to address concerns and potential attempts to remove the Scope 3 reporting requirement.