United States: California has approved a law forcing giant corporations, including Amazon and Apple, to reveal their carbon emissions.
The bill was signed by the California governor, Mr. Gavin Newsom. Companies with more than $1 billion in annual revenue must report greenhouse gas emissions. Under the law, the California Air Resources Board (CARB) must create a system for reporting emissions by January 1, 2025.
“This important policy, once again, demonstrates California’s continued leadership with bold responses to the climate crisis. However, the implementation deadlines in this bill are likely infeasible,” Mr. Newsom remarked.
The governor also expressed his concern regarding the financial impact of the law on businesses. According to the Act, the companies have to disclose their carbon emissions from their operations and electricity usage by 2026.
Additionally, by 2027, they’ll need to report emissions from their supply chains and customers, known as “scope 3” emissions. Another related law was passed by the state’s legislature.
It mandates that businesses earning over $500 million in annual revenue must reveal their financial risks related to climate change starting in 2026. Failure to comply could result in yearly penalties.
Mr. Newsom stated that this would encourage companies to work to avoid those risks, but also raised concerns about the costs to businesses.
With the increasing urgency to tackle climate change, big companies are facing more pressure to be transparent about the amount of heat-trapping gases they release into the atmosphere, as per the statement.
This includes emissions from their operations and indirect sources like purchased electricity. California, known for implementing environmental legislation, is home to numerous multibillion-dollar companies.
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