Governor Gavin Newsom of California signs legislation mandating large companies to report emissions

The most comprehensive mandatory disclosure of planet-warming emissions in the nation was signed by Gov. Gavin Newsom on Saturday for large California businesses.

The law requires over 5,300 California companies with over $1 billion in annual revenue to report direct and indirect emissions. This includes emissions from operating a building or store and employee business travel and product transport.

Advocates say SB 253 will increase transparency about big businesses' climate change contributions and encourage them to reduce their emissions. Many businesses already report some emissions to the state, they say.

The California Chamber of Commerce, agricultural groups, and oil giants opposing the law say it will impose new requirements on companies that lack the experience or expertise to accurately report indirect emissions. They also say it's too soon to implement the requirements while the federal government considers public company emissions disclosure rules.

California has spearheaded climate policy trends in recent years. The state plans to ban gas-powered cars by 2035, increase renewable energy, and reduce rail pollution. By 2030, the state will cut greenhouse gas emissions 40% from 1990 levels.

“These companies are doing business in California,” Wiener said. "It's crucial for Californians to understand their carbon footprint."

Apple and Patagonia supported the bill because they already report most of their emissions. In a letter, former UN official Christiana Figueres called the bill a “crucial catalyst in mobilizing the private sector to solve climate change.”

The SEC's proposed federal rules would require major public companies to report their emissions and how climate change threatens their finances.

The California Air Resources Board must approve rules by 2025 to implement the law. By 2026, companies must report direct and indirect emissions from power, heat, and cooling. Companies must report indirect emissions annually by 2027.