California's coming for you, SEC

Jul 11, 2023 View in browser   By Debra Kahn and Jordan Wolman THE BIG IDEA California Sen. Scott Wiener (D-San Francisco) is pushing his corporate emissions disclosure bill further than federal efforts. | Rich Pedroncelli/AP Photo ALL EYES ON CALIFORNIA — When do you know a bill might have legs? When there’s a bit of horse-trading going on. A first-in-the-nation bill to compel large corporations to disclose their planet-warming emissions is picking up steam in the California Legislature, where it passed the Assembly Natural Resources Committee on Monday. Why are we so pressed about CA SB253? It would go further than the Securities and Exchange Commission's proposed climate disclosure rules, which would only cover public companies and which is shaping up (we hear) to exclude Scope 3 emissions. And the longer the SEC stalls, the more important California becomes. The bill failed by one vote last year, and its sponsor, state Sen. Scott Wiener (D-San Francisco), thinks it has a better chance this year. "I feel good about our path," he told Jordan. Wiener amended the legislation late last month to let companies delay reporting supply chain or Scope 3 emissions for a year after they begin disclosing Scopes 1 and 2. The revision means companies would have to disclose Scopes 1 and 2 starting in 2026 and Scope 3 starting in 2027. It’s an effort to appease companies that have backed or want to support the measure. And it appears to have delivered some immediate returns: Salesforce and Microsoft came out to publicly support the bill shortly after the amendments were announced. Wiener’s team promises more business support is coming, though big groups like the California Chamber of Commerce remain opposed. Companies pushed for the changes in the name of standardization. They are monitoring the evolving climate disclosure space, and the delay for scope 3 reporting is in line with changes the International Sustainability Standards Board made in its final standards released last month. A surprising thorn in Wiener’s side has been the California Air Resources Board. Sources told POLITICO that CARB staff had been less than thrilled with Wiener’s bill and were quietly seeking to undermine support for it in the Legislature, but have since backed off that approach. Gov. Gavin Newsom has so far declined to weigh in on the bill.   UNLEASH THE FUTURE OF HEALTHCARE WITH POLITICO, A 7/20 INTERACTIVE EVENT: Imagine a future where rare genetic diseases are not only treatable, but potentially curable. Where our approach to chronic illness takes a monumental leap forward. That future is already taking shape in the form of next-generation health care treatments such as gene therapy. Join POLITICO on Thursday, July 20 and delve into the burgeoning field of gene therapies, which hold the power to redefine our health care landscape. Are you ready to explore this new frontier in health care? Don't miss this chance to be part of the conversation. REGISTER NOW.     BUILDING BLOCKS EURO TRASH — The European Union is taking aim at fashion's carbon footprint, Leonie Cater reports. In a bid to clean up the industry’s mess, the EU is moving forward with new rules on supply chains, greenwashing and sustainable design. New ecodesign rules, for example, would force companies to abide by (as yet undefined) rules on the sustainable manufacture of their clothes. A ban on companies destroying unsold goods is on the horizon and, just last week, Brussels announced new laws forcing the industry to pay for the clean-up of the waste it produces. Most of these proposals won’t take effect for several years, but the change for the industry could be costly. Retailers put on a brave face at last month's Global Fashion Summit in Copenhagen, but they're also worried about the increasingly uncertain future. “We are an unregulated industry so far, so everything is new and people are scared,” said Clémence Hermann, senior manager of public affairs and sustainability at online fashion portal Zalando. “People are scared of uncertainty, of change. People don’t know where to start.” CALI STYLE — Meanwhile, a bill in California that would create a nation-leading mandatory textile recycling program for clothing producers is likely dead for the year, our Allison Prang reports. State Sen. Josh Newman (D-Fullerton) converted it to a two-year bill Monday after opposition from retailers, including H&M. WORKPLACE TRANSITION TALK — Canada's oil and gas sector may think it's well positioned to ride out a long-term decline in fossil fuel demand, but it's not, a new report warns. The report from the think tank International Institute for Sustainable Development argues that Canadian oil can't keep coasting on its relatively green reputation, as Sue Allan writes. It recommends the government think harder about how to prepare oil and gas workers for the transition. "[W]e can't rely on environmental, social, and governance [ESG] considerations in order to maintain market share going forward," Nichole Dusyk, a senior policy adviser on IISD’s Canadian energy transitions team, told Sue. The Midwestern refineries that are Canada's main customers "are focused on price, and they're focused on quality. They're not focused on ethical considerations. They're not focused on carbon content. That alone is not going to be a criteria we can count on to maintain market share." EXTREMES GETTING HOT IN HERRE — Last week was the hottest ever recorded across the world — and an oncoming El Niño is likely to break more records this year, Zack Colman reports. Sea surface temperatures last week also hit "unprecedented" highs and Antarctic sea ice coverage is at a record low, the World Meteorological Organization said Monday. "The scientific community is struggling to a certain extent to keep up," Michael Sparrow, head of the WMO's world climate research department, said in a press call. "It's very concerning." Movers and Shakers FONDA STAFFS UP — Sarah Lane, a longtime staffer for Sen. Jeff Merkley (D-Ore.), is the new executive director of Jane Fonda's climate-focused PAC. OFFSHORE WIND MOVE — Amanda Lefton, who led the Biden administration’s offshore wind efforts as director of the Bureau of Ocean Energy Management until mid-January, joined RWE on Monday to lead the company’s East Coast offshore projects, James Bikales reports. YOU TELL US GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn and reporters Jordan Wolman and Allison Prang. Reach us all at gmott@politico.com, dkahn@politico.com, jwolman@politico.com and aprang@politico.com. Want more? Don’t we all. Sign up for the Long Game. Four days a week and still free! WHAT WE'RE CLICKING — The fact that the world’s largest oil company stands to benefit from financing meant for sustainable investments highlights flaws in the regulatory system. Bloomberg has the story. — The good news from the IEA: Critical minerals development could meet 2030 climate goals. The less good news: China’s dominance may grow, according to the Financial Times. — Bloomberg talks with Sebastien Kopp, the co-founder of a French footwear maker that was sustainable before sustainable was cool.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman Allison Prang @AllisonPrang   Follow us

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