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CA Now Requires Large Businesses to Report Emissions: Here’s What You Need to Know

CA Now Requires Large Businesses to Report Emissions: Here’s What You Need to Know

By Chloe Woodruff

Last September, California passed the Climate Corporate Data Accountability Act (Senate Bill 253), which requires that both public and private businesses with revenue greater than $1 Billion USD report their emissions.

Here are the basics:

  • Reporting is required for scope 1, 2, and 3 emissions. Need a refresher?
    • Scope 1 emissions are direct Greenhouse Gas (GHG) emissions from sources that are owned or controlled by the company.
    • Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity consumed by the company. 
    • Scope 3 emissions, which can be more difficult to track, are other indirect emissions that are a consequence of the activities of the company but occur from sources not owned or controlled by the company—think employee commuting or purchasing goods.
  • Scope 1 and 2 emissions must be reported in 2026 for the prior fiscal year (2025). Because they are more complicated to consider, companies will not be required to report on scope 3 emissions until 2027.
  • Organizations must use the Greenhouse Gas Protocol framework for their reporting. This is a comprehensive, global, standardized method used to measure and manage emissions.
  • Third-party assurance is required for all organizations’ reports.
  • SB 253 applies to companies doing business in the state of California.
  • Emissions will be reported through an online platform.
 
How We Can Help

Verdical Group is a leading, full-service sustainability consulting firm focused on decarbonizing the built environment and inspiring a net zero future. We provide Environmental, Social, and Governance (ESG) consulting, which includes the annual emissions reporting now required by the state of California.

Our firm has experience helping our clients work toward the goal of measuring, reporting, and reducing their environmental impact. In addition to ensuring that the necessary data is gathered and synthesized into a reporting platform, our team can conduct scope 1, 2, and 3 emissions reporting and assist your organization with developing a plan to reduce your carbon footprint. Ultimately, your organization will be able to share detailed sustainability initiatives with the state, clients, and stakeholders in a market that is continuously shifting toward tangible climate action.

Want to learn more about the clients we’ve worked with? See our ESG work here.

Contact us today to get started.