Legislation that would require corporations to report their greenhouse gas emissions has been re-introduced in the California State Senate, with the proposed law inspired by a bill opposed by the American Bankers Association that was defeated by a narrowly by state legislators last year.
The Corporate Climate Data Accountability Act would require companies with annual revenues of more than $1 billion to report their direct and indirect emissions to the state each year. Specifically, companies would be required to disclose annually audited amounts of direct greenhouse gas emissions (Scope 1 emissions), indirect emissions from purchased power (Scope 2), and indirect emissions from upstream and downstream “supply chain” activities. value” of a registrant, if significant (scope 2). 3, which would include “financed issues” in a bank’s loan portfolio).
ABA was one of many business groups that raised concerns about the 2022 version of the legislation. Along with the California Bankers Association, the ABA noted many serious difficulties in reporting financed issues and that the legislation was based on international reporting standards that are not yet fully developed. The proposal also has the potential to create duplicate and conflicting reporting requirements with those expected from federal regulators when the SEC finalizes weather disclosure rules later this year.
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