The California Air Resources Board (CARB) has delayed its rulemaking timeline for climate regulations, specifically Senate Bills 253 and 261, to the first quarter of 2026. This decision was made due to the large volume of public comments received following an August public workshop and ongoing input related to identifying the range of covered entities (CARB, 2023). The final regulations were initially slated to be issued on a previously undisclosed date, but now will be released in 2026. Senate Bill 253, which was signed into law in 2022, requires business entities operating in California with annual revenues exceeding $1 billion to report their greenhouse gas emissions each year (California Legislature, 2022). To aid in this process, CARB published a draft reporting template on October 10, 2023, for entities to report their scope 1 and scope 2 emissions (CARB, 2023). Although the use of this template is voluntary for the 2026 reporting cycle, CARB plans to provide guidance on future reporting cycles as part of its regulatory process.
The delay in rulemaking has significant implications for companies operating in California, as they will need to adapt to new climate disclosure requirements.
The imperative to address climate change has galvanized governments worldwide to craft and implement regulations that mitigate its far-reaching consequences. In the United States, the Securities and Exchange Commission (SEC) has been actively engaged in developing rules that require publicly traded companies to disclose climate-related risks and greenhouse gas emissions.
This initiative aims to provide investors with crucial information, enabling them to make informed decisions about their investments and promoting a more transparent and sustainable business environment.
As the regulatory landscape continues to evolve, companies are facing mounting pressure to integrate climate considerations into their operations and reporting practices.
The Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board, has developed a framework that provides guidance on disclosing climate-related risks and opportunities.
This framework has gained widespread acceptance, with many companies and jurisdictions adopting its recommendations.
By embracing climate-related disclosures, businesses can better manage climate-related risks, capitalize on opportunities, and contribute to a more resilient and sustainable economy. The intersection of climate change and financial markets is a critical area of focus, with significant implications for investors, companies, and the broader economy.
According to a report by ESG Dive via Yahoo News, the growing demand for climate-related information has led to the development of new products and services, such as climate-themed exchange-traded ← →
Related materials: Visit websiteThe California Air Resources Board, the agency tasked with enforcing the state⁘s climate disclosure rules, is delaying initial rulemaking for Senate...○○○ ○ ○○○
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