Gov. Gavin Newsom received a letter from California’s leading business group and other state and national organizations, proposing amendments to the state’s corporate emissions disclosure law, SB 253. The proposed changes aim to address concerns about the cost and burden of last year’s law, which requires large corporations in California to disclose their greenhouse gas emissions.
In the letter, the business coalition argued that the disclosure requirements, especially related to Scope 3 emissions, are too costly and burdensome. Scope 3 emissions refer to emissions related to a company’s full value chain. This is the only law in the country that mandates disclosure of Scope 3 emissions, as the Securities and Exchange Commission decided not to include such requirements in its federal climate risk disclosure rule earlier this year.
CalChamber has been advocating for “cleanup” legislation since the law was signed by Newsom, who himself cited concerns about costs and implementation in his signing statement. The proposed amendments aim to address these issues and make the law more feasible for businesses operating in California.