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United States: New California Law Mandates Disclosure about Voluntary Offsets and Climate Claims

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In brief

Much of the focus around climate legislation coming out of the latest California legislative session has been on new, far-reaching requirements pertaining to disclosure of climate data and climate-related financial risk. However, California also adopted a third law related to climate change last year – AB 1305 – which has received somewhat less attention but may well have a wider and more immediate effect. Intended to address greenwashing claims, particularly related to voluntary carbon offsets (“VCO”), the Voluntary Carbon Market Disclosure Act (the “VCMDA” or “Act”) mandates disclosure by entities that: (1) sell VCO credits in California; (2) buy or use VCO credits sold in California; and/or (3) make climate claims about corporate performance or products.

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David Hackett advises senior management, legal departments and boards of major corporations and nonprofits on compliance, risk, environmental and sustainability matters. He has exceptional experience managing US and international compliance and environmental projects, including the evaluation and development of effective compliance and sustainability programs. He also has extensive experience litigating major civil and criminal environmental matters. David sits on multiple nonprofit boards and additionally advises many civic and nonprofit organizations across the globe. Following his tenure with the Environmental Enforcement Division of the US Department of Justice, David joined the Firm where he has played a formative role in the establishment of the Firm's compliance, environmental, climate and ESG practices. At Baker McKenzie, David has served as the managing partner of North America, a member of the Global Executive Committee, and Chicago office managing partner. He has also been the North America Chair of both the Compliance Practice Group and the Banking, Finance and Major Projects Practice Group.

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Jessica Wicha is a member of Baker McKenzie’s Global Environmental Practice Group and is based in Chicago. Jessica advises US and multinational companies on managing the risks and liabilities arising under federal and state environmental, health and safety laws.

Jessica is a past co-chair of Baker McKenzie’s Chicago Associates Committee and currently serves on Baker McKenzie’s Chicago BGreen Committee.

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Daniel De Deo is a partner in the Firm's Transactional Practice Group and serves on the Firm's Steering Committee for Global Climate Change. Daniel began his career with the Firm as a summer associate in the Chicago office in 2008. He previously worked on secondment with Bank of America Merrill Lynch in London as legal counsel to their carbon trading desk.

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