What Happened
Recently enacted laws in California will require many companies to measure, manage, and disclose their greenhouse gas (GHG) emissions as well as their climate-related financial risks.
This summary provides a brief overview of the new California laws and suggests proactive steps companies should consider taking now to understand their current baseline and options for complying with these new laws.
Read the summary in the full Regulatory Alert.
Implications
Regulations, the ”how-to” process for complying, for SB-253 and SB-261 have not been issued at this time, and are not likely to be finalized until January 2025. Based on SWCA’s preliminary analysis, the California laws would apply to companies that meet the defined revenue levels, have in-state facilities and employees, or have existing sales in the state. [6]
If your company meets these threshold standards, SWCA recommends:
- Reviewing your GHG program to ensure that it complies with the GHG Protocol and is designed to meet audit standards, making adjustments where necessary.
- Becoming familiar with the TCFD reporting methodology and disclosure recommendations.
- Completing a GHG baseline, and then using it to understand and mitigate associated risks before the disclosure deadlines.
- If your company does not already have a GHG Protocol program and TCFD methodology in place, we strongly recommend starting to do so…
