California Senate passes bill requiring large companies to report carbon footprint
California legislators passed a first-of-its-kind bill Tuesday that would require large companies that do business in the state to disclose all emissions tied to both their operations and supply chain.
The state senate approved the bill, sending the bill to Governor Gavin Newsom, who has not yet taken a position on the bill but will decide by October 14 whether to sign it.
The bill would require businesses with $1B or more in annual revenue that operate in California to calculate and report a wide range of emissions, including indirect or Scope 3 emissions – which opponents said would be nearly impossible to measure accurately.
The measure would go beyond the SEC’s currently proposed climate disclosure rule, which only requires Scope 3 disclosures in certain circumstances.
The California bill was supported by several big companies including Apple (AAPL), Google (GOOG) (GOOGL), Microsoft (MSFT) and Salesforce (CRM), but it was fiercely opposed by the state’s Chamber of Commerce.