{"id":66708,"date":"2024-08-21T23:49:49","date_gmt":"2024-08-21T23:49:49","guid":{"rendered":"https:\/\/www.ecoonline.com\/how-to-prepare-for-californias-new-sustainability-disclosure-climate-laws\/"},"modified":"2025-04-11T13:07:56","modified_gmt":"2025-04-11T13:07:56","slug":"how-to-prepare-for-californias-new-sustainability-disclosure-climate-laws","status":"publish","type":"post","link":"https:\/\/www.ecoonline.com\/en-us\/blog\/how-to-prepare-for-californias-new-sustainability-disclosure-climate-laws\/","title":{"rendered":"How to prepare for California\u2019s new sustainability disclosure climate laws"},"content":{"rendered":"\n
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Even if your organization is headquartered outside California, the new\u00a0California\u2019s new sustainability disclosure climate laws<\/a>\u00a0will likely\u00a0still impact how you report on carbon emissions and climate-related risk.<\/p>\n\n\n\n

The new disclosure standards impact organizations with more the $500 million in annual revenue that do business within the State of California. Since California\u00a0set to become fourth biggest economy in the world<\/a>, these new disclosure standards will quickly\u00a0become a central part of the global regulatory landscape when they go into effect.<\/p>\n\n\n\n

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With climate laws fast approaching, are you prepared?  <\/strong><\/h2>\n\n\n\n

In June 2024, EcoOnline surveyed companies<\/a> with annual revenues of over $500 million to see how prepared they are for the new California laws. The survey looked at what steps these companies are taking to comply and explored their current and future plans for meeting climate change goals.<\/p>\n\n\n\n

 One insight that stood out: <\/p>\n\n\n\n

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As California sets the precedent in the U.S. for emissions and climate-related risk reporting<\/a>, business leaders are already building sustainable programs, recognizing their importance in attracting the next generation of consumers, even in the absence of regulations being enforced. As one respondent summed it up, \u201cIn a competitive market, sustainability sets a brand apart, appealing to consumers who value good practices.\u201d<\/p>\n\n\n\n

How to prepare for compliance with new sustainability regulations<\/strong><\/h2>\n\n\n\n

As sustainability leaders prepare their companies for this new normal around emissions and climate-related risk reporting, here are three steps you can take to put your organization in the best possible position going forward. <\/p>\n\n\n\n

1. Assess your current ESG data to look for gaps or inconsistencies<\/strong> <\/h3>\n\n\n\n

According to the survey, 100% of respondents plan to advance their sustainability efforts even without regulatory pressure. But most are still in the early stages today \u2014 with just 6% already reporting on climate and sustainability performance.<\/p>\n\n\n\n

To build momentum, start by auditing the sustainability data you currently collect. This will help you understand what data you already have, identify key gaps\u2014like missing Scope 3 emissions data<\/a>, for example\u2014and spot inconsistencies in your reporting practices. With these insights, you can create a more well-developed, holistic roadmap for sustainability reporting.<\/p>\n\n\n\n

2. Start implementing the right processes for data collection and ESG disclosure<\/strong><\/h3>\n\n\n\n

85% of survey respondents indicated that they are taking at least some action toward meeting the impending California regulations. However, 41% of respondents say they have a team dedicated to building the needed internal competencies.<\/p>\n\n\n\n

While officials expect the new laws to be delayed to give the California Air Resources Board (CARB) more time to determine the rules, it\u2019s crucial to start preparing now.<\/p>\n\n\n\n

The path forward will vary for every company, but the urgency to begin putting these processes in place remains high. Leaders should start asking key questions:<\/p>\n\n\n\n