Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with house amendments and pass a bill that requires large companies doing business in California to disclose their climate risk.

Highlights:

• Alleges how the California State Legislature recognizes the effects of climate change and how the failure to adequately address emissions costs will result in danger to California citizens (Sec. 1). 

• Defines “Climate Reporting Organization”, “Climate-Related Financial Risk”, “Climate Related Financial Risk Report”, and “Covered Entity” (Sec. 2). 

• Specifies that a covered entity shall create a climate-related financial risk report (Sec. 2). 

• Specifies that climate-related financial risk reports can cover subsidiary companies (Sec. 2). 

• Specifies that the state board shall contract with a climate reporting agency to prepare a biennial public report on climate-related financial risk information (Sec. 2). 

• Specifies that this report will be made available on its website (Sec. 2). 

• Specifies that the climate reporting organization shall be contracted to do the following (Sec. 2): 

• A review of the the disclosure of the risk; 

• Analysis of the systematic and sector wide risk; 

• Identification of inadequate or insufficient reports 

• Specifies that the state board shall adopt regulations concerning the reports and administrative penalties (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that requires large companies doing business in California to disclose their climate risk.

Highlights:

• Alleges how the California State Legislature recognizes the effects of climate change and how the failure to adequately address emissions costs will result in danger to California citizens (Sec. 1). 

• Defines “Climate Reporting Organization”, “Climate-Related Financial Risk”, “Climate Related Financial Risk Report”, and “Covered Entity” (Sec. 2). 

• Specifies that a covered entity shall create a climate-related financial risk report (Sec. 2). 

• Specifies that climate-related financial risk reports can cover subsidiary companies (Sec. 2). 

• Specifies that the state board shall contract with a climate reporting agency to prepare a biennial public report on climate-related financial risk information (Sec. 2). 

• Specifies that this report will be made available on its website (Sec. 2). 

• Specifies that the climate reporting organization shall be contracted to do the following (Sec. 2): 

• A review of the the disclosure of the risk; 

• Analysis of the systematic and sector wide risk; 

• Identification of inadequate or insufficient reports 

• Specifies that the state board shall adopt regulations concerning the reports and administrative penalties (Sec. 2).

Full Bill Text