New California Climate Disclosure Requirements: Impact of SB 253 and SB 261, Reporting, Key Issues, and Next Steps

Description

In October 2023, California enacted separate pieces of legislation detailing the new climate disclosure rules for public and private companies with operations or dealings within the state of California. These new rules and requirements impact a number of energy companies and their investors, forcing them and their counsel to navigate these new requirements, monitor and collect data, and file reports in order to comply with these new rules.

Taking advantage of the opportunity to set mandatory and comprehensive risk disclosure requirements aimed toward sustainability within the enegy sector, Calfiornia enacted the Climate Corporate Data Accountability Act (SB 253), the Greenhouse Gases: Climate-Related Financial Risk (SB 261), and the Voluntary Carbon Market Disclosures (AB 1305). Collectively, these rules are the first of their kind and set the standard that other states may move towards with similar measures.

In light of these new rules, counsel must determine (1) which companies are considered to be "covered entities" and "doing business in California," (2) what data must be monitored and collected, and (3) best practices for navigating the reporting requirements and implement protocols to ensure compliance.

Listen as our panel discusses California's new climate disclosure requirements under SB 253, SB 261, and AB 1305, their impact on companies, reporting obligations, recent legal actions, and next steps for renewable energy companies and investors.