California Emissions Disclosure Legislation Would Ensure Critical Climate Reporting and Transparency

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832

BERKELEY, CALIFORNIA—Sept. 13, 2023—The California State Legislature passed SB 253 yesterday, which would require Scope 1, 2, and 3 emissions disclosures from all companies operating in California with more than $1 billion in revenue. SB 253 now heads to the Governor for signature. 

Emissions disclosures are crucial to investors and consumers alike. Standardized and complete emissions data is necessary for investors to accurately assess the growing material risk posed by climate change.  Shareholders recognize climate change as a material risk and have been actively seeking information from companies on their full Scope 1-3 emissions. Investor representative As You Sow has filed shareholder proposals with 24 companies in 2023 alone urging them to disclose Scope 1-3 emissions.  

Danielle Fugere, president of As You Sow, made the following statement: 

“Clear and standardized reporting of greenhouse gas emissions is the bedrock of sound investor decision-making on climate risk. The California Legislature’s passage of SB 253 follows stringent regulatory disclosure requirements being developed in the EU and the UK. The SEC has issued a draft Rule requiring large companies to disclose Scope 3 emissions but has wavered in the face of company opposition. Standing firm on those requirements will help ensure consistency in reporting standards, benefitting companies in the long run and assisting shareholders and other stakeholders in understanding the full extent of company emissions and climate risk. The passage of SB 253 is yet another signal that full-Scope 1-3 emissions reporting is the new norm, not the exception.” 

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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.