Environment

New California Climate Law Pulls In Private Companies

Companies not subject to the SEC’s proposed carbon reporting regime might be surprised to find the Golden State expects them to track emissions

Oct 12, 2023 4:00 PM ET

Los Angeles skyline — California’s impending legislation would require businesses, including those privately held, to begin reporting on emissions if they operate in the state and have at least $1 billion in revenue. PHOTO: DAMIAN DOVARGANES/ASSOCIATED PRESS. Image courtesy of the Wall Street Journal

California state senator Scott Wiener holds a press conference on the passage of SB 253 on Sept. 19, while flanked by supporters. PHOTO: RICHARD VANDERFORD FOR THE WALL STREET JOURNAL. Image courtesy of the Wall Street Journal

Mallory Thomas, partner at Baker Tilly PHOTO: BAKER TILLY. Image courtesy of the Wall Street Journal.

graph of California carbon emissions in 2020, by source — Image courtesy of the Wall Street Journal.

graph of falling emissions — Image courtesy of the Wall Street Journal.

Todd Rahn, a senior managing director at FTI Consulting PHOTO: FTI CONSULTING. Image courtesy of the Wall Street Journal.

Previously published by the Wall Street Journal

By Richard Vanderford

California is poised to force many private businesses to report on carbon emissions, dramatically increasing the number of U.S. companies that could be subject to some kind of U.S. climate reporting.

Gov. Gavin Newsom on Sunday said he would sign landmark legislation that would require businesses, including those privately held, to begin reporting on emissions if they operate in California and have at least $1 billion in revenue. In addition to their direct emissions, those businesses would have to account for emissions by suppliers and customers, so-called “Scope 3” emissions that are considered more nebulous and difficult to pin down.

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New California Climate Law Pulls In Private Companies

Companies not subject to the SEC’s proposed carbon reporting regime might be surprised to find the Golden State expects them to track emissions

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