New California law requires large businesses to disclose GHG emissions

Over 5,300 firms that operate in the state and make more than $1 billion in annual revenues will now have to report both their direct and indirect emissions.

Under the new law, the state’s Air Resources Board has to approve rules by 2025 to implement the legislation.

Companies have to start annual disclosures of their direct emissions, as well as those used to power, heat and cool their facilities by 2026. By 2027, they have to start annually reporting other indirect emissions.

The state plans to lower its greenhouse gas emissions by 40 per cent below the 1990 level by 2030.

The California Chamber of Commerce, agricultural groups and oil giants, have, however, opposed the law, saying it will create new mandates for companies that don’t have the experience or expertise to accurately report their indirect emissions, a global newswire reported.

The state could have waited as the federal government is weighing emissions disclosure rules for public companies, they say. The measure repeat work if the federal standards are adopted, they wrote in an alert opposing the bill.

Chamber president Jennifer Barrera termed the law burdensome to businesses.

Fibre2Fashion News Desk (DS)