California Passes First-in-Nation Climate Disclosure Rules

Thousands of companies doing business in California would be required to report on climate-related financial risks under a first-in-the-nation bill the state Senate cleared on Wednesday.

Democratic proponents cast the measure as a direct response to Republican efforts across the nation to undermine environmental, social and governance (ESG) policies in business operations.

The bill (S.B. 261) passed the Assembly on Tuesday by a vote of 47-17 and heads next to Gov. Gavin Newsom (D).

The measure comes as the Securities and Exchange Commission considers proposed rules that would require publicly traded firms to issue similar reports. California is ...