38532.
(a) This section shall be known, and may be cited, as the Climate Corporate Accountability Act. (b) For purposes of this section, the following terms have the following definitions:
(1) “Covered “Reporting entity” means a publicly traded domestic corporation or a publicly traded foreign corporation
partnership, corporation, limited liability company, or other business entity formed under the laws of this state, the laws of any other state of the United States or the District of Columbia, or under an act of the Congress of the United States with total annual revenues in excess of one billion dollars ($1,000,000,000) and that does business in California.
(2) “Science-based emissions target” means a greenhouse gas (GHG) emissions reduction target that is in line with the scale of reductions required to keep global warming at or below 1.5°C above preindustrial levels, and includes scope 1 emissions, scope 2 emissions, and scope 3 emissions.
(3) “Scope 1 emissions” means all direct greenhouse gas emissions that stem from sources that a covered reporting entity owns or directly controls, regardless of location, including, but not limited to, fuel combustion activities.
(4) “Scope 2 emissions” means indirect greenhouse gas emissions from electricity purchased and used by a covered entity.
reporting entity, regardless of location.
(5) “Scope 3 emissions” means indirect greenhouse gas emissions, other than scope 2 emissions, from activities of a covered reporting entity that stem from sources that the covered reporting entity does not own or directly control and may include, but are not limited to, emissions associated with the covered
reporting entity’s supply chain, business travel, employee commutes, procurement, waste, and water usage. usage, regardless of location.
(c) On or before January 1, 2023, the state board shall develop and adopt regulations to require a covered reporting entity to verify and annually report to the state board all of the covered reporting
entity’s scope 1 emissions, scope 2 emissions, and scope 3 emissions. The state board shall ensure that the regulations adopted pursuant to this subdivision require, at a minimum, both of the following:
(1) That a covered
reporting entity, on or before January 1, 2024, and annually thereafter, publicly disclose all of the covered reporting entity’s scope 1 emissions, scope 2 emissions, and scope 3 emissions for the prior calendar year in a manner that is easily understandable and accessible to residents of the state, including, but not limited to, by making that information available on a widely available digital platform. state. The public disclosure shall include the name of the covered
reporting entity and any fictitious names, trade names, assumed names, and logos used by the covered reporting entity.
(2) That a covered reporting entity’s public disclosure pursuant to this subdivision is independently verified by a third-party auditor, approved by the state board, with expertise in greenhouse gas emissions accounting. The covered
reporting entity shall ensure that a copy of the complete, audited greenhouse gas emissions inventory for the prior calendar year, including the name of the approved third-party auditor, is provided to the state board as part of or in connection with the covered reporting entity’s public disclosure pursuant to this subdivision.
(d) On or before January 1, 2024, the state board shall develop and adopt regulations to require a covered reporting entity to set
and annually report to the state board a science-based emissions target, based on the reporting entity’s emissions that have been reported to the state board pursuant to subdivision (c). The state board shall ensure that the regulations adopted pursuant to this subdivision require, at a minimum, both of the following:
(1) That a covered reporting entity, on or before January 1, 2025, and annually thereafter, publicly disclose the science-based emissions target the covered
reporting
entity has set for its emissions in a manner that is easily understandable and accessible to residents of the state, including, but not limited to, by making that information available on a widely available digital platform. state.
(2) That a covered reporting entity’s science-based emissions target is independently verified by a third-party auditor, approved by the state board, with expertise in greenhouse gas emissions accounting. The covered
reporting entity shall ensure that a copy of the complete, audited science-based emissions target, including the name of the approved third-party auditor, is provided to the state board as part of or in connection with the covered reporting entity’s public disclosure pursuant to this subdivision.
(e) The state board shall create a digital platform that will house all reports submitted by reporting entities pursuant to this section. The digital platform shall be capable of featuring individual reporting entity reports, as well as aggregated data, in a manner that is easily understandable and accessible to residents of the state.
(e)
(f) In developing regulations pursuant to this section, the state board shall consult with a panel of experts, which shall include, but not necessarily be limited to, experts in climate science and corporate carbon emissions accounting, implementing state agency representatives, stakeholders representing consumer and environmental justice interests, and covered
reporting entities that are leaders in collecting, reporting, and setting targets for the reduction of their own carbon footprint, to develop standards and protocols for the state board to utilize to do both all of the following:
(1) Ensuring that public disclosures required under this section are made in a manner that is easily understandable and accessible to state residents.
(1)Collect
(2) Collecting data for all scope 1 emissions, scope 2 emissions, and scope 3 emissions from a by covered entity. entities.
(2)Set a
(3) Setting science-based emissions target targets for a covered entity. reporting entities.
(g) The state board may adopt or update any other regulations that are necessary and appropriate to implement this section.