California approves two laws for companies to declare their contribution and impact to Climate Change

Climate Change is one of the main challenges facing humanity today. Greenhouse gases (GHG) emitted by human activities are causing global warming that is having a significant impact on the planet.

The more developed a society is, the more its way of life affects Climate Change, as is the case in California, and they suffer from it with heat waves, forest fires, etc... which is why many of its citizens are sensitive to the problem.

To address this challenge, California has passed two laws that require companies to declare their contribution and impact to Climate Change. These laws, known as SB 1350 and AB 2408, will go into effect in 2024.

SB 1350 requires companies with more than 500 employees in California to report their GHG emissions. Companies will be required to provide information on their direct, indirect and supply chain emissions.

The information that companies must declare includes:

• GHG emissions from your operations, such as emissions from company vehicles, emissions from buildings, and emissions from industrial processes.
• GHG emissions from its products and services, such as emissions associated with the production, transportation and use of its products
• GHG emissions from their supply chain, such as emissions associated with the production of the materials the company uses.

SB 1350 also requires companies to set emissions reduction goals. Companies must reduce their GHG emissions by 40% by 2030 and by 80% by 2050.

AB 2408 requires companies with more than 500 employees in California to declare the financial impact of Climate Change. Companies must provide information on the risks and opportunities that climate change represents for their business.

The information that companies must declare includes:

• Financial risks associated with climate change, such as risks of asset loss, business interruption risks and litigation risks.
• Financial opportunities associated with climate change, such as clean technology investment opportunities and cost savings opportunities.

AB 2408 also requires companies to establish risk mitigation plans. Companies will need to develop plans to manage the financial risks associated with climate change.

The two laws passed by California have the potential to have a significant impact on the fight against climate change. These laws will force companies to be more transparent about their contribution and impact to climate change.

SB 1350 will allow investors, consumers and public authorities to evaluate companies' commitment to sustainability. AB 2408 will help companies identify and manage financial risks associated with climate change.

I believe this is a decisive and important step, and California places itself at the forefront of the fight against climate change. The two laws passed by the state are an important step in holding companies accountable for their contribution to climate change.

These laws will help promote transparency and sustainability in the business sector. They will also help accelerate the transition to a low-carbon economy.

The laws passed by California offer a number of benefits, including:

• Greater transparency: Companies will be required to be more transparent about their contribution and impact to climate change. This will help investors, consumers and public authorities make informed decisions.
• Greater responsibility: Companies will be required to account for their commitment to sustainability. This will help promote the adoption of more sustainable practices.
• Accelerating the transition to a low-carbon economy: The laws will help accelerate the transition to a low-carbon economy. This will help reduce GHG emissions and mitigate the effects of climate change.

But on the other hand, these approved laws also pose a series of challenges, including:

• Costs: Companies must invest resources to comply with the requirements of the laws.
• Complications: Laws can be complex to implement and comply with.
• Resistance: Some companies may resist complying with the requirements of the laws.

Despite the challenges, the laws approved by California are an important step to fight against the great problem that we have before us and that is already affecting us, and it is hoped that it will encourage other States and Countries to join the colossal challenge that we have before us. .

Europe has generated a similar law that also forces companies to report the same activities, but globally I think we are quite behind with corrective actions to keep the planet's temperature controlled according to the Paris Agreement.

The longer it takes, the more it will cost to do it, but we must recognize the positive step taken by California, and hope that others will quickly join in.