See Credit Details Below
Overview
In October 2023, California formally enacted the Climate Corporate Data Accountability Act (SB-253), Climate-Related Financial Risk Act (SB-261), and the Voluntary Carbon Markets Disclosure Act (AB-1305). Please join expert faculty as they discuss the new disclosure requirements, expected timing and what to do now to begin your implementation for these new disclosures.
In this Briefing faculty will address the following topics:
AB-1305 - Voluntary Carbon Markets Disclosure – 12 minutes
- Discuss the rationale for the VCDMA
- Explain the scope of the VCDMA, including which companies are affected
- Companies that market or use carbon credits
- Companies that make climate-related claims
- Analyze the reporting requirements of the Act
- Initial report by January 2024
- Required disclosures
- Website posting
- Annual update
- Who monitors compliance
- Penalties for non-compliance
SB-253 - Climate Corporate Data Accountability Act – 19 minutes
- Discuss the rationale for the CCDA
- Explain which companies must report
- Companies that “do business” in California
- Over $1 billion in revenue
- Exemptions
- Analyze the reporting requirements of the Act
- Initial report by January 1, 2026 – Scope 1 and 2
- Phase on for Scope 3 in 2027
- Limited assurance attestation in 2026
- Publicly available platform for posting
- Possible changes in timing?
- Who monitors compliance
- Penalties for non-compliance
- Attestation requirements
- Definition of limited assurance
- Definition of reasonable assurance
- Service provider considerations
- Review of phase-in requirements
- Compare the CCDA requirements to the SEC’s proposed climate related disclosures
SB-261 - Climate-Related Financial Risk Act – 19 minutes
- Discuss the rationale for the CRFA
- Explain which companies must report
- Companies that “do business” in California
- Over $500 million in revenue
- Exemptions
- Analyze the reporting requirements of the Act
- Initial report by January 1, 2026
- Updated every other year
- Website posting requirements
- Possible changes in timing?
- Who monitors compliance
- Penalties for non-compliance
- Overview the TCFD disclosure regimen
- Disclosure objectives
- Governance disclosures
- Strategy disclosures
- Risk management disclosures
- Metrics and targets disclosures
- Possible Greenhouse Gas overlap with other Acts
- Overview the ISSB disclosure regimen
- Disclosure objectives
- Enacted standards
- S1 – Sustainability related risks and opportunities
- S2 – Climate related disclosures
- Review when other reporting regimes may be accepted for CRFA reporting
- Compare the CRFA requirements to the SEC’s proposed climate related disclosures
Recommended action steps for companies to consider – 10 minutes
Program Level: Update
Intended Audience: Accountants and attorneys who deal with environmental or SEC reporting and disclosure and related accounting issues, including CFOs, controllers and their staff, internal auditors, partners of public accounting firms and their staff, in-house counsel, and outside attorneys.
Prerequisites: None
Advanced Preparation: None
Faculty:
Paul Barker
Kirkland & Ellis LLP
Cheryl L. Linthicum
SEC Institute, a Division of Practising Law Institute
Christina M. Thomas
Kirkland & Ellis LLP