Media Coverage
Source: Law.com
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
09.27.23
The California Legislature recently passed two new climate bills—expected to be signed into law in the coming weeks—as part of the state’s Climate Accountability Package. The new legislation will require thousands of public and private companies doing business in California to annually disclose and verify their greenhouse gas emissions data beginning in 2026.
According to Environmental & Natural Resources partner Mike McDonough, California’s bills “will capture both public and private companies, some of which may not have been on the SEC’s radar at all.”
“For a lot of clients, this will be a new experience,” he said. “It’s a whole new world.”
Taking climate regulation costs and benefits into consideration, McDonough noted, “It’s not usually one particular law or another that drives [relocating], but a combination of factors that limits a company’s ability to do business in the state,” as he is currently working with clients who are actively planning or considering leaving the state.
McDonough added: “A lot of clients are struggling with the spend and resources it’ll take.”
“…A lot of companies will have to build a new system of accounting. It’s not an insignificant cost, and it’s not a one-time spend.”
“If we assume everyone is for the basic principle of accurate accounting of carbon emissions, it becomes vitally important to get that right,” he concluded.
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