Climate Disclosure Laws with Increasingly Long Arms

California is not waiting for nationwide corporate emissions disclosure rules: it adopted laws requiring companies to disclose climate-related data. Even though this is state legislation, the impact of these climate disclosure rules is beyond California’s borders. We see California’s disclosure rules to have long arms in 3 ways:

Sets the first U.S. corporate climate disclosure standard for public AND private companies.
By requiring Scope 3 emissions disclosure, California’s rules can reach every part of a company’s value chain.
Many US companies headquartered outside California can fall under its scope, that is U.S. as well as foreign companies.

As Isabel explains, this has consequences for transparency on corporate climate-related information. See the article here.