CA AB766

Requires covered corporations (publicly traded companies with $100M+ annual revenue and principal executive offices in California) to annually disclose climate-related financial risks, risk management strategies, and governance processes to the State Air Resources Board and Secretary of State, beginning January 1, 2025.

Directs the State Air Resources Board to adopt regulations by January 1, 2024 establishing climate change disclosure guidance specialized by industry sector, reporting standards for direct and indirect greenhouse gas emissions, fossil fuel asset disclosures, and a minimum social cost of carbon.

Requires covered corporations to conduct climate scenario analyses using a baseline scenario and a "well below 1.5 degrees" scenario, with specified timeframes (5, 10, and 20 years) and discount rates, and to quantify the total cost of carbon attributable to their emissions.

For corporations engaged in commercial fossil fuel development, mandates additional disclosures including disaggregated greenhouse gas emissions by type (combustion, flaring, process, fugitive), fossil fuel reserve sensitivity analyses, methane leak detection methodology, and freshwater withdrawal data.

Requires the Department of Finance to develop comparable climate change disclosure guidance for state and local debt issuers by January 1, 2024, in consultation with the Treasurer and California Debt and Investment Advisory Commission.