Bill > SB755

This bill establishes the California Contractor Climate Transparency Act, which requires state contractors to disclose their greenhouse gas emissions and climate-related financial risks. Specifically, the bill applies to two categories of contractors: "large contractors" (those receiving over $25 million in state contract obligations annually) and "significant contractors" (those receiving between $5-25 million in state contract obligations). Large contractors will be required to report their scope 1 emissions (direct emissions from owned sources), scope 2 emissions (indirect emissions from purchased electricity), scope 3 emissions (indirect upstream and downstream emissions), and climate-related financial risks. Significant contractors will need to report only their scope 1 and scope 2 emissions. The bill defines climate-related financial risk as potential harm to financial outcomes from physical and transition risks, including impacts on operations, supply chains, investments, and market conditions. Starting one year after the effective date of existing climate reporting regulations, the California Air Resources Board will be responsible for implementing these reporting requirements, which aim to increase transparency about contractors' environmental impact and potential climate-related financial vulnerabilities.

Agriculture and Natural Resources, Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB755