California Governor Gavin Newsom has announced his intention to sign into law two climate-focused bills that aim to increase corporate transparency regarding greenhouse gas emissions and financial risks associated with climate change. The legislation, recently passed by California lawmakers, will require large businesses, including oil and gas companies and retail giants, to disclose their direct greenhouse gas emissions and emissions from activities such as employee business travel. Additionally, companies making over $500 million annually will need to disclose financial risks posed by climate change and their plans to address these risks.
These measures are intended to increase transparency and encourage companies to assess ways to reduce their carbon emissions. By requiring disclosure of financial risks associated with climate change, the legislation aims to provide valuable information to investors and lawmakers for decision-making.
California has been at the forefront of climate change action in the United States, and Governor Newsom’s announcement reflects the state’s commitment to addressing the climate crisis and promoting corporate responsibility in this regard.