California's Landmark Climate Disclosure Laws: Preparing Now for Far-Reaching Impact on Public and Private Companies
Reporting Entities; Data Requirements; Compliance Timeline; Possible Ripple Effect on SEC Pending Rule and Other Legislation

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Environmental
- event Date
Tuesday, January 9, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will guide environmental counsel through California's two recently enacted, groundbreaking climate disclosure bills: Senate Bill 253 (SB 253) and Senate Bill 261 (SB 261). The panel will discuss who is impacted and when. The panel will address how these laws compare to the SEC's pending rule, and how these laws may affect the SEC final rule and impact legislation moving forward. The panel will also provide best practices for counsel and companies to prepare for compliance.
Faculty

Mr. Rousakis helps his clients to evaluate and manage environmental risks and spot opportunities in an increasingly complex regulatory landscape. He represents clients on acquisitions and divestitures of industrial, energy, transportation, telecom and other businesses, on infrastructure development and real estate projects, and in federal and state Superfund matters. Mr. Rousakis also provides strategic and regulatory counseling on a range of environmental, health and safety and ESG matters, including development of ESG programs and policies. His work is informed by his experience in state and local government, including his position as the General Counsel at the New York City Department of Environmental Protection, the agency responsible for supplying New York City’s drinking water, treating wastewater at 14 major facilities, regulating air quality, noise, and hazardous substances, and advancing key sustainability initiatives.

Ms. Mulry focuses on environmental and sustainability matters. She advises a broad range of domestic and international clients, including public and private companies, developers, private equity firms, global organizations, and governments, on environmental matters in complex corporate transactions, environmental regulatory compliance, and climate change issues. Ms. Mulry’s practice involves advising companies on sustainability risks and opportunities, including with regard to board oversight, internal management policies, and external reporting. Prior to joining the firm, she practiced environmental transactional law at another major U.S. law firm in New York and served as a Postdoctoral Research Fellow at the Sabin Center for Climate Change Law at Columbia Law School.

Ms. Otum focuses her practice on complex environmental litigation and regulatory compliance counseling. During her more than 16 years of experience representing corporate clients in a variety of environmental regulatory compliance, litigation and transactional matters spanning multiple jurisdictions, Ms. Otum has counseled clients in high-stakes matters, compliance and enforcement actions, contaminated site cleanups, superfund cost recovery actions, industrial site remediation, toxic tort litigation, land purchase and divestitures, worker safety issues, and corporate successor liability issues. She has worked directly with officials from multiple state and federal agencies to resolve enforcement and compliance matters, primarily under the RCRA, the CAA, and CERCLA. Ms. Otum’s experience also encompasses regularly advising clients on environmental aspects of corporate transactions, including identifying and evaluating environmental liabilities associated with manufacturing facilities, negotiating and drafting environmental provisions in corporate agreements, and advising clients on environmental insurance, public relations and development activities.
Description
On Oct. 12, 2023, California enacted two climate disclosure bills that will significantly impact thousands of major companies, both public and private, doing business in California with requirements that go beyond the SEC's proposed climate disclosures. The laws may affect the SEC's pending rule, providing the agency with incentive to push for more aggressive measures in its final climate disclosure rule. And given the size of the state's economy, the laws may have sweeping implications beyond California's borders.
Beginning in 2026, SB 253 "Climate Corporate Data Accountability Act" requires U.S.-based companies with $1 billion or more in annual revenues that do business in California to file annual reports publicly disclosing (and verifying) their direct GHG emissions from operations (Scope 1 emissions) and indirect GHG emissions from energy use (Scope 2 emissions). Beginning in 2027, reporting entities will also have to report Scope 3 emissions which include the direct and indirect emissions of employees, suppliers, and customers, which will be significantly difficult to calculate.
Additionally, SB 261 "Greenhouse Gases: Climate-Related Financial Risk" requires U.S.-based companies (other than insurers) with $500 million or more in annual revenues that do business in California to prepare biennial reports disclosing climate-related financial risk and measures they have adopted to reduce and adapt to that risk. The first report will be due Jan. 1, 2026.
Given the scope of these disclosure requirements and the significant penalties for noncompliance, counsel and their clients should clearly understand the requirements so that they can begin to equip themselves to respond.
Listen as our expert panel guides practitioners through each groundbreaking law and discusses best practices as counsel and clients prepare for compliance.
Outline
- Overview of current state ESG climate disclosure laws generally and the significance of California's new legislation
- SB 253
- Reporting entities
- Reporting requirements
- Penalties for noncompliance
- Compliance timeline
- SB 261
- Reporting entities
- Reporting requirements
- Penalties for noncompliance
- Compliance timeline
- AB 1305
- Possible impact on SEC final climate disclosure rule and other federal/state legislation
- Best practices: what counsel and companies should be doing now to prepare for compliance
Benefits
The panel will review these and other important issues:
- How do the two California laws' requirements differ from the SEC's pending climate disclosure rule?
- How may the two laws influence the SEC's final climate disclosure rule? Other legislation?
- How will the laws impact private companies? Public companies?
- Why should counsel and their clients begin to prepare for compliance now?
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