CA SB 253/261 and BOI

ESG:

California has passed two new laws requiring businesses to disclose their carbon emissions and climate-related financial risks. The Climate Corporate Data Accountability Act (Senate Bill 253) requires large businesses operating in California to publicly report their greenhouse gas emissions. The Climate-Related Financial Risk Act (Senate Bill 261) mandates that companies disclose the threats they face as a result of climate change.

SB 253: Climate Corporate Data Accountability Act:

• Purpose: Requires public and private companies operating in California to disclose their greenhouse gas (GHG) emissions
• Scope: Applies to companies with annual revenues exceeding $1 billion
• Reporting Requirements: Companies must report their direct (Scope 1), indirect (Scope 2), and supply chain (Scope 3) emissions
• Impact: Enhances transparency and accountability, aligning with global trends towards stringent climate reporting

SB 261: Climate-Related Financial Risk Disclosure:

• Purpose: Mandates companies to report on climate-related financial risks
• Scope: Targets companies with annual revenues over $500 million
• Reporting Requirements: Companies must disclose the financial risks they face due to climate change and their strategies to mitigate these risks
• Impact: Emphasizes the urgency of addressing climate-related financial risks, encouraging companies to integrate climate considerations into their financial planning

BOI:

Here is the link to the online Compliance Guide online with some great information. There are certain exemptions to note, please see page 4: BOI Small Compliance Guide v1.1

Information Provided By David Ternes, CliftonLarsonAllen LLP