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ARTICLE · 17 OCTOBER 2023

California's New Environmental Disclosure Laws Mandate Corporate Transparency

Thompson Coburn LLP
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California, one of the world's five largest economies, just enacted two groundbreaking laws that will impose environmental disclosure requirements on large corporations doing business in the state.

United StatesEnvironment
Sara Chamberlain
Sara Chamberlain
Ryan Kemper
Ryan Kemper
Michael Rosenblum
Michael Rosenblum
Monica Roth
Monica Roth
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California, one of the world's five largest economies, just enacted two groundbreaking laws that will impose environmental disclosure requirements on large corporations doing business in the state.

The Climate Corporate Data Accountability Act (SB-253) requires companies with annual revenues exceeding $1 billion to disclose their direct, indirect, and supply chain greenhouse gas (GHG) emissions data. The Climate-Related Financial Risk Act (SB-261) requires companies with over $500 million in annual revenue to disclose climate-related financial risks. Both were signed into law on October 7, 2023.

The laws aim to enhance transparency regarding how major businesses contribute to climate change. Introduced by California State Senators Scott Wiener and Henry Stern, the bills were additionally supported by environmental lobbyist groups including EnviroVoters, Ceres, and Carbon Accountable. By requiring public disclosure of emissions data, California seeks to encourage

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