California gives companies extra year to comply with new climate disclosure rules

Here’s news from “ESG Today”:

The California Air Resources Board (CARB), the regulator charged with developing and enforcing new regulations requiring large companies to disclose their value chain emissions and report on climate-related financial risks, announced that it will ease emissions reporting requirements and not pursue enforcement action in the first year of reporting, in order to give companies more time to prepare, as long as they show good-faith efforts to comply with the new rules.

Applying to companies with revenues greater than $1 billion that do business in California, the new regulation effectively introduces climate reporting obligations for most large businesses in the U.S., starting with Scope 1 and 2 emissions in 2026, and Scope 3 the following year.