One bill, SB 253, would require companies in California making more than $1 billion annually to report their emissions. The other bill, SB 261, would require companies making more than $500 million annually to report financial risks related to climate change.
Similar legislation was introduced last year but failed to pass. Democratic Senator Scott Wiener, one of the legislators who introduced the bills, said they have received more corporate support this year. He said companies that have come out in support of the legislation include Microsoft, Salesforce and Patagonia.
“I am optimistic about our chances,” Wiener, who represents San Francisco, said of the bills’ futures. “This is important because it signals to legislators that when the Chamber of Commerce and the oil industry and the bankers tell them that this protocol cannot be implemented — it signals that that is false, because we have some of the largest corporations in the world who are already doing it, and doing it well.”
However, Wiener said the legislation has also drawn staunch opposition from organizations including the American Petroleum Institute and the National Bankers Association.
Senator Henry Stern, another Democrat who co-introduced the bills, said the legislation would impact large companies like Bank of America and Amazon. Some of these companies might already report their emissions, but the Southern California lawmaker said how they do it is inconsistent.
“What we're trying to do is set some standard so that the marketplace feels certain about making these emissions reduction investments and that it's not just a greenwashing world,” Stern said.
Melanie Morelos, a strategist and senior program manager for the nonprofit Greenlining Institute, said this transparency could help assess the impact corporate emissions are having on communities living close to their operations.
“Although we're trying to solve this large issue about data and transparency, we're also solving for the impacts that are happening in low-income communities and communities of color,” Morelos said.
Legislators have until Sept. 15 to pass the legislation.
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