California Governor Gavin Newsom signed rules into law this month requiring companies that are active in the state and generate revenue of more than $1 billion annually to publish an extensive account of their carbon emissions starting in 2026.
The SEC has drafted its own rules which would not go as far, giving companies discretion over disclosing some emissions they deem not material or not pertaining to their emission reduction targets.
The SEC’s rules would apply to all U.S.-listed companies, and one of the politicians behind the California law estimates that about 1,400 of those would also meet the threshold to report in the state.
The overlap could result in companies including emission information in SEC filings that they would have held back were it not for California’s rules, the regulatory lawyers and experts said. They added that this may expose companies to more SEC and shareholder scrutiny.
‘Enforcement 40’ for 2020
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