Preparing climate disclosures to comply with California’s Greenhouse Gas Reporting Program
At a glance
California recently passed Senate Bill 253 as part of the Climate Corporate Data Accountability Act. This landmark act reinforces the State’s commitment to increasing transparency and consistency in climate-related disclosures, including greenhouse gas (GHG) emissions. With enhanced reporting processes and transparency as the primary goals, the general consensus is this legislation will raise the bar on corporate climate action and encourage climate risk mitigation, including decarbonization.
But what does this mean for businesses operating in California? If you are affected by the new senate bill, you are likely wondering what is involved and how to start the process. GHD has addressed many relevant and frequently asked questions so you and your colleagues have the information necessary to begin or continue developing your disclosures and align them with the new requirements.
What does California’s Senate Bill 253 mean for California businesses?
Public and private companies conducting business in California with total annual revenues exceeding $1 billion now must provide information on global carbon footprints, including greenhouse gas emissions from direct operations, energy use and supply chains.
Who does this affect?
This new law pertains to public and private companies "doing business in the state of California". This means that even businesses engaging in limited activity in California will be required to comply with the mandate. Given the new law’s broad span, it’s estimated that approximately 5,400 companies will fall under the reporting requirements.
When do the new climate reporting rules begin?
By 2026, required companies will need to file a Greenhouse Gas Emissions Report which includes Scope 1s and 2 emissions detailing their 2025 emissions. Scope 1 emissions refer to direct GHG emissions from the sources that a company owns and controls where Scope 2 emissions pertain to the electricity a company purchases and uses. Starting in 2027, companies must also report their 2026 Scope 3 emissions which include emissions from a company’s upstream and downstream activities, meaning emissions from across the entire value chain.
What needs to be done to comply with the new senate bill?
Companies falling under the scope of Senate Bill 253 will be required to file a Greenhouse Gas Emissions Report. All GHG emissions data reports must comply with the regulatory requirements and be submitted to a digital reporting platform. Your associated climate-related disclosures will also need to align. We recommend you contact a qualified consultant to help determine best practices and ways to manage your greenhouse gas emissions reporting.
Get your greenhouse gas reporting started
Who can help you successfully prepare and file the report?
GHD has been actively involved in providing greenhouse gas reporting services since the inception of regulatory and voluntary greenhouse gas reporting programs and we have assisted our clients with quantifying their GHG emissions for over 20 years. With our extensive experience, teams can help navigate through the greenhouse gas reporting process with confidence. We also offer a turnkey solution across Sustainability Reporting and Disclosures, and work with global, diverse clients throughout the year to support strategic communications planning and delivery.
What is the process for greenhouse gas reporting?
We work with you to develop a greenhouse gas inventory strategy and data acquisition process, implementing appropriate solutions to efficiently quantify and report emissions. With the first report serving as a benchmark, we can then help set goals to reduce the emissions and set risk mitigation plans in place to propel your company forward to achieve your sustainable goals. We advise you on how best to leverage this process in support of your Sustainability and Climate Disclosures and identify opportunities for internal alignment and integration.
Even if you are already started on your journey to climate action, we can assess your reporting process to ensure best practices are met and help you prepare a disclosure that achieves the regulatory requirements of the new Senate Bill as smoothly as possible.