Key impacts
In the movement to improve transparency and standardize climate-related disclosures, California passed the following laws, signed by the Governor in October 2023.
SB-253, Climate Corporate Data Accountability Act, mandates the disclosure of GHG emissions.
SB-261, Greenhouse gases: climate-related financial risk Act, mandates the disclosure of climate-related financial risks and measures adopted to reduce and adapt to such risks.
The above laws were amended by SB-219, which was signed into law by the Governor in late September 2024. Contrary to earlier proposals, these amendments do not delay the reporting effective dates for SB-253 and SB-261, but they do defer by six months (to July 1, 2025) the date for CARB to develop and adopt regulations that implement SB-253.
AB-1305, Voluntary carbon market disclosures Act, mandates disclosures about voluntary carbon offsets and emissions reduction claims. Proposed AB-2331 would delay the effective date for reporting to July 1, 2025 but failed to pass before the end of California’s 2024 legislative session.