That sound you hear is of corporations HUSTLING to put in place their #CarbonAccounting and #ClimateRisk departments.
The SEC is not far behind California.
I look forward to seeing those rankings. A "carbon fact" on product labels would be nice, like "nutrition facts" on food labels.
It's "The new dawn of a corporate climate disclosure regime with legal teeth."
"By 2026, those companies will have to publicly disclose how much #carbon is produced by their operations and electricity use. Critically, by 2027, they will also be required to report #emissions generated by their #SupplyChains and customers, known as “#Scope3” emissions, which are highly controversial among business interests, including the #FossilFuel industry."
"Starting as soon as January, major #US companies that raise money on European stock exchanges will start compiling information on their #CarbonEmissions, #ClimateRisks and strategies to counter the damage.
The #SEC proposed a #ClimateDisclosure rule last year, but the agency is trying to deal with pushback from Republican lawmakers and industry groups."
"In the last 21 months, agency staff, commissioners’ offices, climate activists and powerful trade associations have met dozens of times on the rule, with no clear resolution.
As the #SEC proposals have lingered, other authorities have plowed ahead on #ClimateDisclosure rules. Thousands of U.S. companies will fall under robust California mandates enacted this year and European Union regulations that went into effect in January."
"If adopted, the new draft would represent a win for many corporations and their trade groups that lobbied to water down the rules. But it would also deviate from European Union rules which make Scope 3 disclosures mandatory for large companies starting this year and potentially complicate compliance for some global corporations."
"Republican-led states, energy industry companies and business groups say the rules amount to environmental regulation and therefore overstep the #SEC's legal mandate.
On the other side, environmental groups including the Sierra Club and Natural Resources Defense Council have said the rules do not go far enough. A more stringent initial draft was diluted."
"One bill — already approved by the [California State] Senate — would force about 5,300 #US corporations earning more than $1 billion and doing business in #California to annually report their global [greenhouse gas] #emissions that contribute to #ClimateChange.
Another bill that won Senate approval would require more than 10,000 companies with revenues exceeding $500 million to detail how climate change poses #FinancialRisks to their [worldwide] #operations."
"California's state Senate on Tuesday approved a bill requiring large companies to report their #carbon footprints, sending the bill to Governor Gavin Newsom."
Californians, time to call your Governor. Even if he's inclined to sign these bills, it's still good to know you got his back on this.
Fossil fuel subsidies hit a record $7 trillion last year (7% of global GDO) according to the IMF.
In other news...
Economists expose costs of emissions: the damage caused when publicly traded companies emit #greenhouse gases is equivalent — on average — to about 44% of their operating profits.