What Does the Climate Corporate Data Accountability Act Mean for Your California Business?
California has a reputation for natural beauty but also for outsized man-made artifice. The giant sequoias are as much a part of California’s image as the Golden Gate Bridge and the Hollywood sign. At some point, the man-made artifice became a serious threat to California’s natural wonders; the pine trees festooned with artificial snow made of asbestos at Christmastime no longer seemed so festive. California has been trying to clean up its environment, and so far, it has succeeded in cleaning up its image.
In California, nature lovers live side by side with corporate giants, but the negative effect of the corporate giants with their factories belching smoke is greater than the effect of the nature lovers growing organic vegetables for their own consumption and for sale at local farmers’ markets. California Governor Gavin Newsom has signed into law a bill that requires large companies to provide disclosures about their environmental impact. Your business is probably nowhere near big enough for the provisions of the new law to be applicable to it, but if you have questions about environmental sustainability and your business venture, contact a California business law attorney.
Provisions of the Climate Corporate Data Accountability Act
In October 2023, Gov. Newsom signed SB 253, the Climate Corporate Data Accountability Act, into law, and since then, it has received a series of amendments, some of them postponing the date that businesses must begin reporting on their activities that have a harmful effect on the environment. In its current form, the most thorough reporting requirements apply to businesses that generate at least $1 billion in revenues and that operate in California, even if they also operate elsewhere. These businesses must report the following activities:
- Scope 1 – direct admissions
- Scope 2 – emissions related to the purchase and use of electricity
- Scope 3 – indirect admissions, including water usage, waste, and emissions arising from procurement, supply chain, employee commuting, and business travel
Businesses with an annual revenue between $500 million and $1 billion must also submit disclosures, although these are not as thorough as the disclosures required of larger companies.
Prioritizing Environmental Sustainability, Even If Your Business Is Small Enough to Fly Under the Radar
The Climate Corporate Data Accountability Act targets the companies that do the greatest damage to the environment, but smaller businesses can and should focus on sustainability, too. For many small business owners, the biggest obstacle to switching to environmentally friendlier alternatives is money. A business law attorney can help you conclude agreements with suppliers and partners that enable your company to adopt environmentally sustainable practices at an affordable price.
Contact SNR Law Group About Your Business Venture and the Environment
You do not need a huge budget for your business to have a positive impact on the environment. A business law attorney can help you make plans so you can afford to follow environmentally friendly business practices. Contact SNR Law Group in Tustin, California, to discuss your case.
Sources