California Gets Ahead of SEC in Forcing Firms’ Carbon Disclosure (2)

California state legislators passed a bill Tuesday that would leapfrog the US Securities and Exchange Commission’s efforts to require companies to disclose their greenhouse gases and climate-related financial risks.

As the world’s fifth-largest economy, California’s environmental rules are quickly followed by other states, even when they exceed federal requirements. The Golden State’s proposal, known as the Climate Corporate Data Accountability Act, would force many of the world’s biggest publicly traded corporations to make their carbon emissions public, just like the SEC plan. The state legislation, however, also would apply to closely held businesses.

The bill backed in California now heads to Democratic Governor Gavin Newsom’s desk. If he signs it into law ...