Is climate risk disclosure a policy burden—or an opportunity to make your business more resilient and competitive? In this episode, Watershed’s Nate Kimball and Barnaby Lynch break down California’s climate risk disclosure law (SB 261), how it links to TCFD, and a simple, practical path to get started with compliance. From physical risk (wildfire, heat, flooding) to transition risk (customer pressure, regulatory change), they share concrete examples, common pitfalls, and why “best efforts” in year one is both acceptable and smart.

What you’ll learn:

• The two sides of climate risk: physical vs. transition—and why both matter
• What SB 261 expects (and how CARB’s “best efforts” makes year one doable)
• A practical first-90-days plan, including who to involve and what data to use
• How risk assessments uncover quick wins (from supply chain resilience to utility savings)
• Why framing this as enterprise risk (not “ESG”) unlocks leadership buy-in

Key quotes:

• “We do have a crystal ball. We know how many of these risks will unfold in the next 10 years—so plan for them.” —Nate
• “Step one might be as simple as Googling a TCFD report in your sector and using it to get started.” —Barnaby
• “Year one is best efforts. It’s a journey. Start now and build from there.” —Barnaby

Learn how Watershed can help your company comply with California SB 261

Timestamps:

• [00:00:10] The new reality: climate-related financial risk goes public in California
• [00:02:04] Icebreaker: jam jars, pellet grills, and everyday sustainability
• [00:04:44] Climate risk, explained for a third grader: physical vs. transition risk
• [00:07:41] SB 261 basics: what companies disclose and why it exists
• [00:09:48] Climate risk as enterprise risk: why this belongs with other core risks
• [00:15:14] Where to start: scopes, locations, suppliers, and free tools (Aqueduct)
• [00:17:23] CARB’s stance: best efforts in year one—start simple, improve over time
• [00:22:39] Beyond California: TCFD as the global foundation
• [00:28:00] Finance lens: markets want less uncertainty and more comparable data
• [00:32:16] Making the case: talk to the GC, CFO, and bring proof points
• [00:39:03] Closing: you can do this—because it’s the law, and it’s good business

What if the secret to selling sustainability is to avoid talking about sustainability at all?

Clay Dumas, General Partner at Lowercarbon Capital, has cracked the code on making climate solutions irresistible to businesses. His portfolio companies don't win because they're "green"—they win because they're better, faster, and cheaper than the alternatives.

In this episode, Clay reveals the counterintuitive approach that informs Lowercarbon’s investing strategy, and that applies to anyone selling sustainability: lead with business value, let environmental benefits follow.

What you'll learn:

• Why the most successful climate companies avoid climate messaging entirely
• How Solugen won oil and gas customers by focusing on cost and convenience
• The vocabulary shift that's transforming how climate solutions get sold
• Why offering "more" beats asking for "less" every single time
• How to reframe your sustainability initiatives for maximum business buy-in

Key quote: "The only mechanism I'm aware of in all of human history to move mass and money as fast as we need to avert a cataclysm on a massive scale is capitalism."

Timestamps:

[00:00:00] Introduction: The climate economy reality check

[00:01:09] Meet Clay Dumas from Lowercarbon Capital

[00:03:20] What makes a company "preposterously ambitious"?

[00:05:05] Clay's journey from Lowercase to Lowercarbon

[00:06:44] The Solugen secret: Winning without climate credentials

[00:09:33] Why the vocabulary shift changes everything

[00:13:26] How to navigate the new language of sustainability

[00:15:36] Making established companies climate winners

[00:20:11] Why AI amplifies climate opportunities

[00:22:15] Building our way out of political gridlock

[00:25:00] Your action plan for selling sustainability

Welcome to future proof: A new podcast series from Watershed where we explore how corporate leaders are turning sustainability into a competitive edge. In this episode, we cover how to build a business case for clean power. Plus, insights on how investing in sustainability makes your company more attractive to customers and investors. Guests: Anna Yates, head of sustainability at Albany International (an advanced textiles manufacturer), and Matt Konieczny, head of decarbonization at Watershed. 00:00 Introduction

00:44 Meet the guests

03:13 Icebreaker! Sustainability quirks

05:25 Working in sustainability in 2025

10:28 Albany International's clean power journey

15:33 Challenges and opportunities in corporate sustainability

25:56 Advice for sustainability leaders