California’s New Climate Reporting Bill
California is charging ahead with its climate disclosure laws, and Senate Bill 219 (SB 219) has just passed the Assembly and Senate, and was signed into law by Governor Newson on the 27th of September. The bill focuses on mandatory climate disclosures for organisations, meaning it will now be compulsory to report on greenhouse gas emissions and climate-related financial disclosures for organisations doing business with California where their turnover exceeds $500mil USD (per SB 261) or $1bil USD (per SB 253).
So, what does this actually mean for emissions reporting? Here’s what you need to know:
- The California Air Resources Board (CARB) will have an extra six months to establish regulations for the Climate Corporate Data Accountability Act, pushing the deadline to July 1, 2025.
- While Scope 3 emissions reporting will still need to be disclosed annually from 2027, CARB will now offer a schedule for reporting - rather than requiring reporting for Scope 3 emissions to be within 180 days of Scope 1 and 2 reports.
- Companies can consolidate their emissions reports at the parent company level, and there will no longer be a fee for filing these reports.
- CARB may also opt to work with a climate-reporting organisation to compile public reports on climate-related financial risks.
For all businesses, this legislation emphasises the growing importance of understanding and reporting your carbon impact. The passing of SB 219 reflects a strong push for accountability and transparency, reinforcing the need for accurate climate-related disclosures.
At Sumday, we’re all about making sure you stay ahead of the curve when it comes to carbon accounting and reporting. With regulatory changes like this, it’s crucial to get your GHG reporting process in place sooner rather than later to ensure that your data is robust and audit-ready.
Want to ensure your business is ready for these upcoming regulations? We’d be happy to chat over a call or get started with a 30 day free trial here.
