California is once again leading the charge in environmental legislation. The state’s Assembly recently passed a ground-breaking bill requiring large companies to disclose their full value chain greenhouse gas emissions. On Saturday 7th October, the SB-253 bill, as well as accompanying SB-261 bill, were signed into law by Governor Gavin Newsom. This will have implications for businesses not just in California but across the United States. In this blog post, we’ll delve into what this means for your company and how Sustain360°™ can help you navigate these new requirements.
The Bills in a Nutshell
The California law, SB-253, will mandate companies with revenues greater than $1 billion to disclose emissions across all scopes—Scope 1, 2, and 3. This includes everything from direct emissions to those associated with supply chains, business travel, and more. When enacted, companies will need to start disclosing Scope 1 and 2 emissions by 2026 and Scope 3 emissions by 2027. The companion bill SB-261, would additionally require businesses with revenues greater than $500m to disclose their climate-related financial risks beginning in 2026
Why This Matters
Transparency in emissions reporting is becoming a cornerstone of corporate responsibility. With increasing scrutiny from investors, regulators, and the public, companies can no longer afford to ignore their environmental footprint. This California bill sets a precedent that could influence federal legislation and even global standards.
What can Sustain360°™ do for you
Sustain360°™ is a comprehensive platform designed to help companies to meet and exceed these new reporting requirements. Here’s how:
- Automated ESG Reporting: Our platform simplifies the complex task of gathering and analyzing emissions data across all scopes and presenting the outcome in clear visualisations, making compliance easier. The challenge is Scope 3 emissions as this requires data from upstream and downstream value chains. Sustain360°™ provides visibility to data sets across these value chains.
- Life Cycle Assessment (LCA): Get a complete picture of your environmental impact with our LCA tool, which uniquely offers 13 environmental metrics for a thorough analysis.
- Net-Zero Optimization: Our AI-driven optimizer identifies the best options for achieving your net-zero goals, providing actionable insights for immediate implementation. You can design in carbon reduction from the outset of your project.
The passage of this bill underscores the urgency of adopting comprehensive sustainability measures. Don’t wait for legislation to dictate your company’s sustainability efforts. Take control now with Sustain360°™, all-in-one platform designed to help you achieve your sustainability goals. Make sure your business is ready!
Request a Demo to learn how Sustain360°™ can help you navigate emissions disclosure requirements and accelerate your path to net-zero.