· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: California’s pioneering carbon disclosure law (SB 253), requiring companies with over $1 billion in revenue to report emissions, is advancing despite opposition
• The law has faced legal challenges, notably from the U.S. Chamber of Commerce, but timelines for implementation remain intact
🔭 The context: California's law positions it as a de facto national regulator, as the SEC’s similar rule is delayed
• Companies are being pushed to disclose Scope 3 emissions, which include indirect emissions from suppliers and product use, despite corporate resistance and concerns over feasibility
🌍 Why it matters for the planet: Mandatory carbon accounting could drive significant emissions reductions and transparency in corporate climate impacts, aligning businesses with global sustainability goals
⏭️ What's next: Legal challenges will proceed, but businesses are already moving towards compliance, anticipating a future of increased carbon disclosure obligations, particularly as EU rules impose similar requirements
💬 One quote: “We were very methodical… to make this law really tightly drafted so that it would withstand legal challenges,” said California State Senator Scott Wiener
📈 One stat: Only 29% of U.S.-listed firms currently report Scope 3 emissions, compared to 54% in other developed markets
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