California Spotlights 4,000 Companies with New Sustainable Legislation

California is preparing for greater corporate sustainability. The state’s lead government air quality agency, Carb, has signaled more than 4,000 businesses operating in the territory to prepare before two sustainable laws, SB 253 and SB 261, go into effect. California has led the way in the last year in major, and virtually unique, sustainability advances in the United States.

In view of the future entry into force of both laws, the Carb has published a preliminary list of the companies that will be affected and which, it points out, must adapt to the new requirements. In this register, the agency has included companies from all sectors, including fashion.

Abercrombie&Fitch, Adidas, Nike or Gap are some of the giants on the list, published by the Carb with the aim of preparing companies for the entry into force of both laws. The list, however, warns the agency, is preliminary, as it has been carried out with public data from 2022 on companies operating in the territory, so it could still be extended.

California rises as the spearhead territory in sustainable laws in the United States

The state of California has become the spearhead of sustainable laws in the United States, both against other states and against the central government of the country, led by Donald Trump from the White House. The texts, which reflect some of the most important sustainability legislation in the European Union, increase the responsibility of companies in terms of both reporting and their value chain.

Both laws were approved by the Governor of California in 2023, to receive the green light from the territory’s lower house a year later. SB 253 (senate bill number 253) will oblige companies with a turnover of more than 1 billion dollars in California to report their emissions, both direct and indirect. SB 261, on the other hand, will apply to companies with a turnover of $500 million, which will have to prepare a report with the main financial risks related to the environment, and a plan to reduce them.

If there are no delays similar to those occurring in the European Union, the publication of Scope 1 and 2 emissions should begin as early as 2026, while companies will have to publish Scope 3 emissions, which account for the bulk of the total, from 2027. The report, meanwhile, must be ready for publication by January 1st next year.