CP Daily Newsletter – October 6, 2025 – Carbon Pulse

California advances Landmark Climate Disclosure Bills

California Governor Gavin Newsom signed into law two significant bills on October 5, 2025, mandating extensive climate-related financial risk disclosures for companies doing business in the state. These measures, Senate Bill 829 and Assembly Bill 853, aim to increase transparency regarding greenhouse gas emissions and climate risks within the corporate sector.

SB 829: Emissions Reporting for Large corporations

Senate bill 829 requires companies with annual revenues exceeding $1 billion to publicly report their scope 1, Scope 2, and Scope 3 greenhouse gas emissions annually, beginning in 2027. Scope 1 emissions cover direct emissions from owned or controlled sources, Scope 2 encompasses indirect emissions from purchased electricity, steam, heating, and cooling, and Scope 3 includes all other indirect emissions that occur in a company’s value chain.

The bill adopts the Greenhouse Gas Protocol,a widely used international accounting tool for greenhouse gas emissions,ensuring a standardized approach to reporting. compliance will be overseen by the California Attorney General’s office.

AB 853: Climate Risk disclosure

Assembly Bill 853 mandates that companies report on climate-related financial risks, aligning with the recommendations of the task Force on Climate-related Financial Disclosures (TCFD). This includes identifying and assessing physical risks (such as extreme weather events) and transition risks (such as policy changes and technological shifts) that could impact their businesses.Reporting under AB 853 also begins in 2027.

The legislation specifically requires companies to disclose how they are managing these risks and the resilience of their business models in a changing climate. This aims to provide investors and stakeholders with the information needed to make informed decisions.

Impact and Implications

Experts predict these laws will substantially impact companies operating in California, requiring considerable investment in data collection, analysis, and reporting systems. The bills are expected to drive greater corporate accountability and encourage businesses to reduce their carbon footprints.

“California’s actions are likely to accelerate the trend towards mandatory climate disclosure globally, putting pressure on other jurisdictions to follow suit.”

While some business groups have expressed concerns about the cost of compliance, proponents argue that the long-term benefits of climate resilience and investor confidence outweigh the initial expenses. The laws are viewed as a crucial step towards achieving California’s enterprising climate goals, including carbon neutrality by 2045.

Looking Ahead

the California Attorney General’s office is expected to release detailed guidance on implementation and enforcement of the new laws in the coming months. Companies should begin preparing now to ensure they can meet the reporting requirements by 202