US SIF releases statement on California’s climate disclosure bills

California passed two climate disclosure bills this week. US SIF weighs in on the huge impact and importance of these bills.

WASHINGTON, D.C., September 13, 2023 California this week passed two climate disclosure bills, SB 253 and SB 261, which require companies that "do business in California" and meet certain thresholds to disclose their greenhouse gas emissions and other climate-related financial risks. Both bills have stricter requirements than what the SEC has proposed in its climate risk disclosure rule which could now be considered a potential de facto national standard for climate risk financial reporting.  
Maria Lettini, CEO of US SIF: Sustainable Investment Forum, made the following statement: 
“US SIF applauds lawmakers in California for passing SB253, which requires companies doing business in the state to disclose their greenhouse gas emissions, and SB261, which requires companies to disclose further information about their climate-related risks and opportunities that investors have been calling for. These bills represent an important step forward around transparency for investors by providing more standard information for investors to consider when making financial decisions. Given the large number of companies operating in the state, this legislation will have significant global implications. 
“The impacts of climate change have material and financial ramifications for investors, who need clear, comparable, and reliable climate-related data to make financial decisions. We urge Governor Newsome to demonstrate strong leadership by signing these bills into law swiftly to bring the US in line with the global community. 
About US SIF and the US SIF Foundation
US SIF: Sustainable Investment Forum is the leading voice advancing sustainable investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability-aligned goals with the aim of achieving long-term investment goals and preserving our planet and society. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, data and research firms, financial planners and advisors, broker-dealers, banks, credit unions, community development financial institutions and non-profit associations.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering trainings for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investment.