Live from California: Carbon Footprint Reporting Begins Soon!

The ClimateHound Team
Sep 30, 2024
4 min read

Heat waves. Droughts. Wildfires. California has long been on the frontline of climate change – but it’s also pioneering regulations that aim to fight global warming. Almost 80 percent of Californians say that their state’s leadership on environmental issues is very or somewhat important to them, and legislators have responded with a wide range of policies. Those policies matter because California has the largest economy below the national level in the world, so if a company wants to do business in that economy, they need to align their practices with California standards. 

It’s not surprising, then, that companies around the globe are taking notice of new California legislation that aims to hold business and industry to high standards for emissions reporting, climate risks, and more. The first of their kind in the nation, these laws were designed to increase transparency around how companies contribute to climate change, how they will be impacted by it, and what they are doing about it. 

Here’s a breakdown of the new requirements and how they apply not only to businesses based in California, but also to any company that wants access to the state’s lucrative markets:

LawCompanies subject to requirementsInitial reporting dateRequired reporting
California SB-253 Climate Corporate Data Accountability ActPrivate and public companies that do business in CA and have global revenue of $1 billion or more2026 (2025 data)GHG emissions (scope 1-2, scope 3 following year) aligned to the Greenhouse Gas Protocol framework and third-party verified
California SB-261 Greenhouse gases: climate-related financial riskPrivate and public companies that do business in CA and have global revenue of $500 million or more2026 (2025 data)Climate risks and related management, aligned to the Task Force on Climate-Related Financial Disclosures framework
California AB-1305 Voluntary carbon market disclosuresPrivate and public companies that operate in CA and claim carbon neutrality2025 (2024 data)Supporting information for carbon neutrality and offset purchases

Unsurprisingly, there’s been pushback against these requirements, but the laws have survived initial legal challenges, and many businesses are now preparing to comply. If you think that any of these laws may apply to your company, now or in the future, ClimateHound is here to help. We recommend the following action steps:

  1. Determine whether your company will be subject to any of the laws using the table above and reach out to ClimateHound with any questions. 
  2. If you believe that the legislation does apply to your business, a gap assessment is often the next step. By getting up to speed on the reporting requirements and related frameworks, comparing them to your current climate-related data and processes, and identifying gaps now, you can position yourself for successful compliance.
  3. If you haven’t already completed a carbon footprint, now is the time to get started! If you already calculate your footprint on an annual basis, then we recommend strengthening the processes and documentation to ensure your data can be verified by third parties, which is required for California SB-253. 

ClimateHound is here to help you every step of the way: from assessing where you are to getting where you need to go – and ultimately certifying as carbon neutral. The investment you make in meeting California’s standards will prepare you for the implementation of similar laws in other states, with New York and New Jersey pursuing their own legislation.

Do what’s right for your business AND the planet and prepare for a new era in environmental accountability.

Become a net-zero contributor today, don't wait until 2050.