(October 7, 2023) – California has two brand-new laws that require large companies operating in California to disclose their risks from climate change — a vitally important step that will help ensure investors have the information they need to make prudent financial decisions.
Governor Gavin Newsom signed the measures, SB253 and SB261, into law today.
“Climate-related financial risks are already serious, and they are intensifying. Climate-amplified weather disasters, including heat waves, wildfires and floods, are causing billions of dollars in damage every year,” said Michael Panfil, Senior Director of Climate Risk and Clean Power at Environmental Defense Fund “Investors, both big and small, need to understand the nature and scope of climate risks, and California’s actions today are a critical step toward meeting that need.”
The new laws apply to companies doing business in the state of California. SB 261 applies to companies with annual revenues of at least $500 million a year. Those businesses would be required to disclose information about their climate risk management. SB 253 applies to companies with annual revenues of at least one billion dollars a year, who will…
