by UL Solutions Regulatory Team
California Gov. Gavin Newsom signed Senate Bill 253, the Climate Corporate Leadership and Accountability Act, and Senate Bill 261, the Climate-Related Financial Risk Act, into law on Oct. 7, 2023.
Under the statutes, companies doing business in California will be required to publicly report their climate-related financial risks and greenhouse gas (GHG) emissions starting as early as 2026 for some organizations.
The mandates apply to both public and private companies, although each bill has slightly different revenue thresholds. California defines any of the following as “doing business” in the state:
-
- Any business engaging in any transaction for the purpose of financial gain within California
- Any business organized or commercially domiciled in California
- Any business having California sales, property or payroll exceeding certain amounts found here
UL Solutions is here to help, learn more here!
What this means for your business
As the largest subnational economy in the world, with a $3.6 trillion gross state product (GSP) as of 2022, California’s passage of corporate climate accountability legislation is making global news. SB 253 and SB 261 are part of an expansive, global movement to legislate climate reporting for companies doing business within legislative limits. Companies need to be confident in their reporting as increased financial, legal and third-party assurance of emissions data is now the norm.
View the full article from the UL Solutions Regulatory expert team here.
The views, opinions and technical analyses presented here are those of the author or advertiser, and are not necessarily those of ULProspector.com or UL Solutions. The appearance of this content in the UL Prospector Knowledge Center does not constitute an endorsement by UL Solutions or its affiliates.
All content is subject to copyright and may not be reproduced without prior authorization from UL Solutions or the content author.
The content has been made available for informational and educational purposes only. While the editors of this site may verify the accuracy of its content from time to time, we assume no responsibility for errors made by the author, editorial staff or any other contributor.
UL Solutions does not make any representations or warranties with respect to the accuracy, applicability, fitness or completeness of the content. UL Solutions does not warrant the performance, effectiveness or applicability of sites listed or linked to in any content.