Five Things To Know About California’s New Climate Disclosure Law
October 13, 2023, Law360
Andy Jack’s commentary was included in an article from Law360 breaking down five important details to know about a new California law requiring public disclosure of greenhouse gas emissions. Andy discussed grey areas in how the law will be implemented and steps companies can take to ensure they are compliant with the measure.
Andy noted that one issue is when the law will actually be implemented, pointing to California Governor Gavin Newsom's criticism of the bill's current implementation deadline. He added there are "a number of issues lurking in the law itself that the California Air Resources Board (CARB) is going to have to provide guidance on, such as, what is really meant by total revenues? What does it really mean to be doing business in California for these purposes?"
Discussing compliance with the new law, Andy argued that companies need to build "carbon fluency" among their ranks, including those who execute the company's strategy and those tasked with reporting and disclosing the strategy." Carbon accounting is somewhat arcane," he said, adding that companies need expertise in that area or access to experts, as well as "fluency around carbon accounting and carbon disclosure issues."
Andy added that there is a "burgeoning field" of carbon accounting consultants and assurance providers and verifiers, whether they are backed by venture capital, new businesses within large companies or part of the Big Four accounting firms." Companies really just need to evaluate their third-party assurance providers and carbon accounting consultants carefully, just as they would selecting auditors," he said.
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