California Governor Newsom to Sign Climate Bill for Corporate Carbon Footprints
California Governor Gavin Newsom has announced his intention to sign a bill that would require large companies to disclose their carbon footprints, potentially positioning the state ahead of federal regulators in managing corporate climate risks. The bill, which mandates greenhouse gas emissions disclosure, was approved by the State senate last week. Companies earning over $1 billion annually and operating in California would be required to measure various categories of emissions, including the complex Scope 3 category linked to supply chains and end-users. While multinational companies like Apple and Microsoft have expressed support for the bill, the California Chamber of Commerce has raised concerns about increased costs and paperwork. The Securities and Exchange Commission has yet to issue its own guidance, and legal challenges to the legislation are possible.