Manatt Energy and Environment Partner David Smith was quoted in Business Insurance on California’s upcoming climate disclosure bills, where he discussed how businesses may be impacted by the potential regulations.
According to the article, the legislation would require large businesses to disclose their greenhouse gas emissions related to their operations as well as their climate-related risks. Smith said that, if the bills are signed into law, the rules would apply to thousands of businesses throughout California. He also explained that since scope 3 emissions—the indirect emissions from businesses’ customers and suppliers—are included in the bills, the “actual impact of the laws is exponentially larger than just those who were subject to the face of the laws.” He concluded by noting that many companies are concerned about the reputational effects in addition to the potential legal liability. “You will have interest groups, consumer advocacy groups and, frankly, competitors pointing to each other’s numbers as to who is the greenest,” he said.
Read the complete Business Insurance article here.