California Gov. Gavin Newsom signs law requiring big businesses to disclose emissions

SACRAMENTO, Calif. — Large businesses in California will have to disclose a wide range of planet-warming emissions under a new law Gov. Gavin Newsom signed Saturday — the most sweeping mandate of its kind in the nation.

The law requires more than 5,300 companies that operate in California and make more than $1 billion in annual revenues to report both their direct and indirect emissions. That includes things like emissions from operating a building or store as well as those from activities like employee business travel and transporting their products.

The law, SB 253, will bring more transparency to the public about how big businesses contribute to climate change, and it could nudge them to evaluate how they can reduce their emissions, advocates say. They argue many businesses already disclose some of their emissions to the state.

But the California Chamber of Commerce, agricultural groups and oil giants that oppose the law say it will create new mandates for companies that don’t have the experience or expertise to accurately report their indirect emissions. They also say it is too soon to implement the requirements at a time when the federal government is weighing emissions disclosure rules for public companies.

The measure could create “duplicative” work if the federal standards are adopted, the chamber and other groups wrote in an alert opposing the bill.

In a statement Saturday, Chamber of Commerce president Jennifer Barrera said the law will be burdensome to businesses.

“We look forward to working with the Governor’s office on SB 253 clean-up legislation that will address some of the major concerns of our members, particularly the impact on small business,” Barrera said. “The tools developed to meet the goals of SB 253 must be cost-effective and useful.”