The implementation of HB 1119 introduces significant compliance responsibilities for major firms operating in Colorado. It is designed to enhance public knowledge on corporate contributions to climate change and is part of a broader effort toward environmental accountability. Entities will face civil penalties of up to $100,000 per day for non-compliance, which emphasizes the seriousness of adhering to these regulations. This legislative measure reflects a growing trend among states to take proactive steps in mitigating climate change through corporate transparency.
Summary
House Bill 1119, titled 'Require Disclosures of Climate Emissions', mandates that entities doing business in Colorado with annual revenues exceeding $1 billion must disclose their total greenhouse gas emissions. The bill establishes specific reporting requirements that aim to improve transparency about the environmental impact of large corporations. Reporting entities will need to provide information on scope 1 and scope 2 emissions starting January 1, 2028, and scope 3 emissions from January 1, 2029, requiring independent verification by a third-party auditor for all disclosures.
Contention
While supporters argue that the bill fosters greater environmental responsibility and helps combat climate change, critics may contend that these requirements could burden businesses with extensive regulations and compliance costs. Some industry representatives worry that the bill may lead to competitive disadvantages for Colorado-based companies compared to those operating in states with less stringent requirements. Overall, discussions surrounding the bill may reveal a divide between environmental advocates pushing for rigorous corporate responsibility and businesses concerned about operational impacts.