California is forging a path for climate disclosure with its series of related legal frameworks requiring covered entities to disclose climate-related information, supporting documentation for certain net zero claims and financial risk frameworks.

In October 2023, California became the first state to enact such broad climate disclosure legislation, with the passage of the:

• Climate Corporate Data Accountability Act (SB 253),
• Climate-Related Financial Risk Act (SB 261), and
• California’s Voluntary Carbon Market Disclosures Act (AB 1305).

Entities covered by these three programs generally include those that do business in the state of California and either (1) make certain climate related claims about the business, its products, etc.; (2) market and/or purchase certain voluntary carbon offsets; and/or (3) meet certain monetary thresholds (for purposes of SB 253 and SB 261).