California Banker Issue 3 2024

CBA Monitors Climate Related Disclosure Legislation By Melanie Cuevas, Vice President of Government Relations, California Bankers Association

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n 2023, Governor Newsom signed into law measures SB 253 and SB 261, both of which mandate climate-related disclosures. Both measures impact financial in stitutions that meet the qualifying factors for reporting entities. Note that one of the qualifying factors is

doing business in the state of Cali fornia (rather than, for example, being headquartered in California). The California state agency oversee ing these mandates is the California State Air Resources Board (CARB), which is required to complete sub sequent implementing regulations

on or before January 1, 2025. Both measures also empower CARB with enforcement authority via adminis trative penalties. SB 253 requires reporting entities to disclose on an annual basis its Scope 1, 2, and 3 greenhouse gas emis sions. By 2026 entities are mandated

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