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Our top story this week is an analysis from Reuters about the growing importance of such action and the power of sub-national actors to bring about real change. In recent years, state-level leadership has come prominently from California (CA), where certain large businesses are required to publicly disclose their greenhouse gas (GHG) emissions and climate-related risks beginning in 2026. Given the size of California’s economy, this legislation will have impacts that are nearly national in scale.
Building on this legislative precedent, CA State Senator Catherine Blakespear introduced in February a first-of-its-kind state bill, SB 755, to require the largest state contractors to report their GHG emissions and climate-related financial risks starting in 2027. The increase in transparency is aimed at enabling the state to reduce the emissions within its supply chain, supporting the state’s goal of carbon neutrality by 2045.
“At G&A, we know that transparency ultimately drives action. The introduction of SB 755 is an important first step towards spotlighting the climate-related risks present in California’s supply chain, and it will encourage suppliers to take ownership of measuring and managing their GHG emissions.” – Annie Roberts, Senior Vice President, Climate Consulting, G&A Institute
In other areas of legislation like electric transport and clean air, California is joined by ten other U.S. states in banning the sale of gas-only vehicles by 2035. And Vermont, New York, and California have linked corporate polluters to environmental and health impacts by requiring fossil fuel companies to fund projects that build communities’ climate resilience – a state-level version of the U.S. Superfund act of 1980.
The authors argue that even without federal action, cities and states could cut U.S. emissions by 54-62%, which is needed to achieve the U.S.’ nationally determined contribution (NDC) under the Paris Agreement. This is “a lot of heavy lifting” for sub-national actors, but according to Nate Hultman, Centre for Global Sustainability at the University of Maryland, it is possible and indeed was what the Biden administration planned for in the absence of national leadership.
The Reuters story highlights an alliance of 24 state governments that have committed to continue taking climate action. It also notes an 11-state Regional Greenhouse Gas initiative (RGGI, pronounced “Reggie”), a cap-and-trade system for the power sector.
From a business perspective, a strong case remains for states to enact ambitious climate policies – from operational continuity for businesses in each state facing climate impacts, to controlling climate-related financial risk as a good business model.
At G&A, we are ready to support companies in responding to climate and sustainability requirements in the states and local municipalities where they do business, such as California’s nation-leading climate disclosure rules. We can also support municipalities in developing or updating climate action plans and reaching their targets. Find us here.
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