Glossary

From Voluntary to Compliance: California’s Groundbreaking Climate Disclosure Bills

From Voluntary to Compliance: California’s Groundbreaking Climate Disclosure Bills

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Nancy Marshall, SVP, Marketing
+1 484.415.7603 or nmarshall@climeco.com

From Voluntary to Compliance: California’s Groundbreaking Climate Disclosure Bills

by: Jacob Wills | October 17, 2023

On September 12, California’s legislature passed two landmark climate disclosure laws. Senate Bill 253, the Climate Corporate Data Accountability Act, and Senate Bill 261, the Climate-Related Financial Risk Act, require disclosures of greenhouse gas (GHG) emissions and climate risk for California companies exceeding certain revenue thresholds. On October 7, Governor Gavin Newsom signed both bills into law.

Here are some key points on each bill: 

Some key pieces of both laws will need clarification during the rulemaking process. At the forefront are those raised by the Governor around the implementation deadlines and reporting challenges. The Governor has instructed the California Air Resources Board (CARB), the agency tasked with implementing the program, to monitor the financial impact on businesses closely. Additionally, policymakers will have to define what it means to conduct business in California and provide guidance on reporting in a manner “easily understandable and accessible” for stakeholders. 

The passage of these laws in California could impact the SEC rulemaking process. Since thousands of companies would already be required to report under the California disclosure laws, the cost-benefit analysis for the SEC rule would improve, making it easier to issue a final rule. As it stands, the SEC is expected to vote on the climate disclosure rule by the end of October. 

Our Sustainability, Policy, and Advisory team is equipped to answer questions related to these new laws and help companies prepare for compliance. Contact us today at info@climeco.com or through our contact page.

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About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complimenting these programs is a team of professionals skilled in providing sustainability program management solutions and developing and financing of GHG abatement and mitigation systems.

Contact us at +1 484.415.0501, info@climeco.com, or through our website climeco.com to learn more. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.

ClimeCo Responds to the Greenhouse Gas Protocol’s Surveys for Standard and Guidance Updates

ClimeCo Responds to the Greenhouse Gas Protocol’s Surveys for Standard and Guidance Updates

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, SVP, Marketing
+1 484.415.7603 or nmarshall@climeco.com

ClimeCo Responds to the Greenhouse Gas Protocol’s Surveys for Standard and Guidance Updates


Our experts weigh in on recommended updates to the global greenhouse gas accounting standard.


by: Garrett Keraga | March 20, 2023

ClimeCo's Response to the Greenhouse Gas Protocol
Boyertown, Pennsylvania (March 20, 2023) –
In 2023, the Greenhouse Gas Protocol (GHG Protocol) invited stakeholders to recommend updates to its widely-used standards and guidance for measuring greenhouse gas inventories. This presents a rare opportunity to help shape the way that companies report on emissions, track them over time, and use market-based mechanisms to support global decarbonization efforts. The ClimeCo team gathered leaders from around the company with expertise in measuring inventories, developing environmental commodities, and helping companies lower their emissions. We’ve crafted a response to help push the industry forward constructively and mindfully.

In the survey for the Corporate Accounting and Reporting Standard, we indicated a high level of satisfaction with the existing material and provided a range of minor tweaks to improve fidelity. This included suggestions like improved guidance on emission factor databases and leased asset accounting, improved accounting procedures for companies or portfolio managers with high levels of inorganic growth, and a clear recommendation on a baseline recalculation threshold.

Our responses for Scope 2 and Scope 3 similarly indicated satisfaction with the current guidance but suggested several more areas of improvement. Within Scope 2, we requested clearer guidance around renewable energy certificate (REC) boundaries and improved residual mix emission factor availability globally. We did not see a current need for revisions to the REC market that incorporate proof of total change in low-carbon supply. Our Scope 3 suggestions included creation of a remote work emissions category: consistent allocation of upstream versus downstream emissions, additional industry specific guidance for several categories, and guidance around market-based mechanisms within Scope 3.

Our experts had numerous suggestions for the future of market-based accounting, including expanding market-based accounting into Scope 1 and Scope 3 through inset credits, mass-balance certification, and book and claim certificates. We advised the GHG Protocol to establish systems that use the same principles as the current market-based Scope 2 reporting. Our team believes the voluntary market will continue incentivizing fast-paced, cost-effective progress toward net-zero, regardless of physical limitations. The graphic below explains how this system might work with a book and claim approach for a shipping company.

GHG Protocol - Book & Claim Accounting: Shipping


About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complimenting these programs is a team of professionals skilled in providing sustainability program management solutions and developing and financing of GHG abatement and mitigation systems.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at +1 484.415.0501, info@climeco.com, or through our website climeco.com. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.