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California bill would require large corporations to disclose their greenhouse gas emissions

Four fashion and clothing sector groups support proposed law, saying it would promote environmental sustainability and social responsibility efforts in global supply chains.

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A proposed law in California would require large corporations to disclose their greenhouse gas emissions, increasing the pressure on businesses to publicly measure and reduce their carbon footprints.

Four groups in the fashion and clothing sector today announced support for the bill, saying it aligns with their stance unveiled in January on setting standards “to achieve the highest ethical and responsible standards across our global supply chain and production practices.” The groups call their framework the “THREADS Sustainability and Social Responsibility Protocol” and say it will help unite business groups with policymakers in pursuit of environmental sustainability and social responsibility efforts in global supply chains.


In their letter released today, the four groups—the American Apparel & Footwear Association, the Accessories Council, The Council of Fashion Designers of America, and Fashion Makes Change—applauded California's proposed Climate Corporate Data Accountability Act (SB 253), introduced by Senators Scott Wiener, Lena Gonzalez, and Henry Stern.

Specifically, the bill establishes that corporations with more than $1 billion in gross revenues – and that do business in the state of California—must annually and publicly disclose their greenhouse gas (GHG) emissions. 

That regulation would come as several other initiatives would require corporate disclosures of environment, social and governance (ESG) practices, including mandatory reporting rules starting in fiscal year 2024 that will apply to some 50,000 companies doing business in the EU and UK.

Likewise, the federal Securities and Exchange Commission (SEC) has proposed new rules to enhance and standardize climate-related disclosures by publicly traded companies in the U.S., including accounting for greenhouse gas emissions.


 

 

 

 

 

 

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