California lawmakers urge SEC to follow their lead in climate disclosure requirements

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California lawmakers urge SEC to follow their lead in climate disclosure requirements
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California lawmakers urge the SEC to include scope 3 emissions in their forthcoming climate disclosure regulations.

On Oct. 7, California Governor Gavin Newsom signed into law a bill, SB 253, which will require large businesses, with over $1 billion in annual revenues that operate in California, to disclose their Scope 1, 2 and 3 greenhouse gas emissions to an emissions reporting entity.

"The passage of SB 253 virtually eliminates the cost of compliance with a federal Scope 3 disclosure requirement for all businesses operating in California with over $1 billion in revenue," the letter from California lawmakers says. But the California lawmakers "strongly urge" the SEC "to follow California's lead and specifically include Scope 3 disclosure requirements in addition to Scope 1 and 2,"

Also, the California lawmakers say that because California has passed SB 253 requiring large businesses in the state to report their Scope 3 emissions, the cost for California businesses to submit the same data to federal regulators is negligible.

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