Last week I predicted that companies would soon have to report Scope 3 carbon emissions. On Friday, the state of California put an exclamation mark on that issue. It's perhaps the biggest climate news this week, despite New York Climate Week taking place on the other U.S. coast, on the sidelines of the U.N. General Assembly meeting.
Under a new Golden State law, any corporation active in California with over $1 billion in global sales will have to disclose its indirect CO2 emissions as of 2027. The rule applies to some 5,000 companies, whether they are public or privately held. Because of its scope and reach, the law seals the debate on Scope 3 before the Securities and Exchange Commission has even made up its mind. (Gov. Gavin Newsom said this week he will sign the bill into law.)
