A new analysis shows broad public support for California’s new climate disclosure laws. The findings come as the California Air Resources Board (CARB) prepares to implement the landmark regulations.
According to sustainability nonprofit Ceres, 59% of public commenters backed the new rules, while only 9% opposed them. The laws, passed in 2023, require companies doing business in California to report their greenhouse gas emissions and disclose climate-related financial risks.
“Our analysis found broad support for California’s climate disclosure laws, with the majority of investors, companies and other stakeholders advocating for implementation that aligns with global disclosure standards,” said Steven Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets at Ceres. “CARB now has a tremendous opportunity to meet investor and consumer demand for improving corporate climate risk transparency.”
Ceres analyzed 245 unique submissions sent to CARB. Of those, 199 came from institutions, including investors, businesses, and advocacy groups.
The comments highlighted three main concerns:
1. Global Alignment:
Most respondents urged CARB to align its rules with existing international standards. They specifically pointed to the International Sustainability Standards Board (ISSB) and the EU’s Corporate Sustainability Reporting Directive as key frameworks.
2. Defining “Doing Business in California”:
Many commenters called for clearer criteria to determine which companies fall under the law. Some recommended using the definition found in California’s Revenue & Tax Code. Others suggested setting financial thresholds to ensure companies have a real presence in the state.
3. Reporting Rules for Corporate Groups:
Stakeholders asked for clarity on how multinational companies with complex corporate structures should report. Many agreed that consolidated reporting by parent companies should cover subsidiaries.
The input will help shape final implementation rules as CARB continues drafting guidance for the historic climate laws.
