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California Moves To Delay Corporate Climate Reporting Requirement Until 2028

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California Moves To Delay Corporate Climate Reporting Requirement Until 2028


In September 2023, California passed legislation requiring large companies to file sustainability disclosures beginning in 2026. The move was part of a global trend of sustainability reporting and environmental, social and governance reporting focused on climate change and greenhouse gas emissions. However, a new proposal by Governor Gavin Newsom will delay implementation by two years.

As international focus on climate change increased in the wake of the Paris Agreement, there was a simultaneous increase in pressure on businesses to be more accountable for their climate and environmental policies. This translated into a rise in ESG reports and sustainability reports created by companies to attempt to showcase their green initiatives.

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Around 2020, the production of these reports became standard practice by both publicly traded and privately held companies. However, there was no standardization of content. Regulators scrambled to create sustainability reporting standards. This was generally done at a national or international level.

In 2021, the International Sustainability Standards Board drafted the International Financial Reporting Standards Foundation’s Sustainability Disclosure Standards. The IFRS Standards were adopted in June 2023 as the global standard for sustainability and climate change reporting, including GHG emissions.

That same month, the European Union announced the adoption of the European Sustainability Reporting Standards. The ESRS incorporated the IFSR Standards for climate related disclosure

In March 2022, the SEC proposed the development of a Climate-Related Disclosure Rule. The final rule, adopted in March, 2024, required large publicly traded companies to disclose climate action, GHG emissions, and the financial impacts of severe weather events. The rule was initially set to go into effect in 2026.

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In September 2023, California approved the Climate Accountability Package, a pair of bills aimed at creating sustainability reporting requirements. The bills require reporting standards far beyond the SEC standards.

Senate Bill 253 requires companies who do business in California and have an excess of $1 billion in revenue, defined as “reporting entities”, to submit an annual report for Scope 1 and Scope 2 starting in 2026. Scope 3 reporting will begin in 2027. The State Air Resources Board must create the details of the reporting requirement by January 1, 2025.

Senate Bill 261 requires companies who do business in California and an excess of $500 million in revenue, defined as “covered entities”, to submit a biennial climate-related financial risk report. The report is based on the work of the Task Force on Climate-Related Financial Disclosures, established by the Financial Stability Board.

Implementation of sustainability reporting standards has been bumpy at best. The drafting of the regulations was more complicated than lawmakers originally envisioned. The result has been delays in the implementation timelines as governments struggle to find a balance between the desire to require reporting and the complexities of a regulatory scheme. The EU has delayed parts of the ESRS to allow companies to adjust to the existing standards and to allow time for additional drafting.

This became even more problematic, especially in the U.S., as regulations were challenged in the courts. The SEC rule was delayed indefinitely as challenges work through the legal system.

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The California requirements faced similar challenges. However, it was not the legal challenges that delayed implementation, but rather the inability to draft the details in time. This is not a new concern, and it is not surprising the Newsom is now pushing the delay.

Newsom signed the bill into law on October 7 but questioned the feasibility of implementation at the time. The Governor’s message with the bill singing, which becomes part of the official record, stated (in full).

“I am signing Senate Bill 253 which would require, among other things, the California Air resources Board (CARB), by January 1, 2025, to develop and adopt regulations requiring businesses with total annual revenues over $1 billion and operating in California to disclose their greenhouse gas emissions to an emissions reporting organization.

“This important policy, once again, demonstrates California’s continued leadership with bold responses to the climate crisis, turning information transparency into climate action. However, the implementation deadlines in this bill are likely infeasible, and the reporting protocol specified could result in inconsistent reporting across businesses subject to the measure. I am directing my Administration to work with the bill’s author and the Legislature next year to address these issues.

“Additionally, I am concerned about the overall financial impact of this bill on businesses, so I am instructing CARB to closely monitor the cost impact as it implements this new bill and to make recommendations to streamline the program. I look forward to working with the Legislature on these modifications to ensure we achieve this bill’s goals of ‘full transparency and consistency’.”

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The proposal will delay Scope 1 and Scope 2 reporting until 2028. Scope 3 will be delayed until 2029. It is unclear if the delays will be adopted. However, given the global trend of delays in implementation, it is not unreasonable to assume that California will follow the same path.



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Prize money in California lottery game increased, after software glitch

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Prize money in California lottery game increased, after software glitch


Close-up of sign for CALottery or the California Lottery in Lafayette, California, April 4, 2019. (Photo by Smith Collection/Gado/Getty Images)

A software error affecting a California lottery game is prompting lotto officials to boost the prize pool by hundreds of thousands of dollars in the coming days, leading to potentially bigger jackpot wins. 

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On Monday, the California Lottery said it recently discovered the glitch which affected machines selling Daily Derby tickets.

SEE ALSO: Great-grandmother wins $5M lottery prize after completing radiation treatments for breast cancer

As part of the game, players select two sets of three numbers: the first represents three horses to finish in first, second, and third places. The second set of numbers represents a winning race time.

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The software error was limited, according to lottery officials, who said it affected two specific kinds of ticket machines and had an impact on players who used the “quick pick” option. That option allows the gaming system to select the numbers for players.

“The machines affected by the error produced Quick Pick tickets with numbers only in ascending order. The software issue also affected the race time number selections in some cases, with numbers only being printed on tickets in ascending order and with no repeating digits,” officials explained.

They also said the software issue was corrected within 24 hours of its discovery and stressed that no other state lottery games were affected.

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Because of the error and as a promotion, the California lottery said that starting Tuesday, the Daily Derby overall prize will be boosted by $100,000 each day for 12 days. 

“This means winners at any prize level will have the opportunity to win bigger prizes than they would without the promotion,” officials said. “If the grand prize is not won during the promotional period, the money added to the grand prize will remain in the pot until someone wins the top prize.”



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The 50 best beaches in Southern California

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The 50 best beaches in Southern California


You’re lounging on your back, saltwater coating your lips, sand between your toes. And you think to yourself: “Now this is a great beach.”

When you visit the 50 beaches from San Diego to Santa Barbara on The Times’ best beaches list, we want you to feel like you’re having one of those oh-so-California beach days. Reporters visited more than 200 miles of coastline, picking through hundreds of beaches. We prioritized ease of use (although some have a more remote feel) and special amenities — like firepits, volleyball courts, camping, surf conditions and views. Most have accessibility options, all but three have bathrooms (cleanliness varies), and they’re almost evenly split in terms of dog-friendliness.

The majority of beaches on the list tend to pass water quality tests during the summer. As noted in their descriptions, a handful don’t have test scores but are near high-scoring sites or received temporary water-quality warnings this summer at limited spots. At a few beaches, the water quality typically meets standards in most areas but not in some sections. Bacteria levels may increase for a variety of reasons, including contamination runoff from storm drains, poor water circulation, water depth and high heat. (A good rule of thumb: Don’t swim near outfalls.) You can check for updates through the county public health departments of Santa Barbara, Ventura, Los Angeles, Orange and San Diego as well as Heal the Bay. Even if water quality dips, there are other ways to enjoy these beaches.

While leisure was our guiding light, our list — which is grouped by county below, starting with San Diego — also underscores the importance of public access. Some of these beaches might not exist as they do today if not for a 1976 state coastal protection law unlike any other in the country. Over decades, the law has been used to save firepits; add bathrooms, parking, trails and acreage; and force a private club to drop discriminatory membership rules.

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“The general public in California, they don’t think about public access to the beach because they’ve always had it,” said Linda Locklin, the California Coastal Commission’s coastal access program manager. “There are a lot of insidious ways that public access can be undermined and is being undermined all the time.” Her comments call to mind private guards previously stationed at Malibu beaches.

So in the spirit of recognizing aquatic splendor, we’re also celebrating beach access. “The California coast is California’s commons,” after all, as Locklin said.

— Brittany Levine Beckman



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Invasive Species: California’s three-billion dollar problem

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Invasive Species: California’s three-billion dollar problem


(FOX40.COM) — Invasive species cause billions of dollars worth of damage in the United States annually, and California is no exception.

In 2021, it was reported that the United States spent between $120 billion and 137 billion per year on the environmental damage caused by invasive species, which are defined as organisms (plants, animals, microbes) that are not native to an environment, and once introduced, quickly reproduce, spread and cause harm to the environment, economy or even human health.

In California, at least $3 billion is spent annually on eradicating invasive pests, according to the University of California Riverside. The university adds that 80% of endangered species are threatened globally by invasive species, making them second to habitat destruction as the largest threats that native species face.

California’s Department of Fish and Wildlife says it has identified numerous invasive species that have already established populations in the state. Additionally, the agency has identified potential invasive species that haven’t been introduced but could cause harm if brought onto state grounds.

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“By educating the public about these species, their likely impacts, the pathways of introduction, and what to do if they are encountered, we aim to prevent introductions and intercept populations before they can establish, spread, and cause harm,” CDFW said.

CDFW has identified these animals as invasive species that are present in California:

Fishes such as snakeheads, piranhas, northern pike, bighead carp, silver carp, and black carp are considered invasive to California, but the animals are not currently present in the state, CDFW says.

According to CalMatters, California spends about $3 million annually to eliminate nutria. The organization adds that the number is only a fraction of the costs because eradication efforts are typically unsuccessful.

CDFW asks that the public take basic steps to ensure that the animals on its invasive species list don’t become more of an issue than they currently present. The most important step is to not release the animal into the wild. If someone has an unwanted animal that is also on the invasive species list, the CDFW recommends either finding the animal a new home, learning how to handle the animal, or contacting animal control.

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If an invasive animal is spotted, the CDFW recommends filling out a “suspect invasive species sighting report,” which can be found here.



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