Senate Bills 253 and 261 are set to impact large companies from fiscal year 2024, with the first reports due in 2025. SB 253 focuses on the disclosure and calculation of Scope 3 greenhouse gas emissions.
Why the California Regulations?
The California Regulations, including Senate Bill 253 (Climate Corporate Data Accountability Act) and Senate Bill 261 (Greenhouse Gases: Climate-Related Financial Risk Act), require businesses with significant revenues to disclose Scope 3 greenhouse gas emissions and climate-related financial risks.
SB 253 mandates entities over $1 billion in revenues to disclose Scope 3 emissions, following Greenhouse Gas Protocol standards. SB 261 requires biennial public reporting of climate-related financial risks from January 1, 2026, emphasizing transparency in climate risk communication. These bills aim to address climate risks in business and financial sectors.
Summary Results
[{"id":1,"name":"Revenue Verification","text":"<div class=\"container mx-auto text-center leading-relaxed\">Ensuring the annual revenue exceeds $1 billion to confirm applicability under SB 253.</div>","disabled":false},{"id":2,"name":"Scope 3 Emissions Reporting","text":"<div class=\"container mx-auto text-center leading-relaxed\">Reviewing the comprehensive disclosure of indirect emissions, including supply chain and product use, as per SB 253.</div>","disabled":false},{"id":3,"name":"GHG Protocol Conformance","text":"<div class=\"container mx-auto text-center leading-relaxed\">Verifying alignment of the entity’s emissions reporting with the Greenhouse Gas Protocol standards.</div>","disabled":false},{"id":4,"name":"Third-Party Assurance Verification","text":"<div class=\"container mx-auto text-center leading-relaxed\">Checking if disclosures have been independently verified by a third-party assurance provider.</div>","disabled":false},{"id":5,"name":"Emissions Data Accuracy and Completeness","text":"<div class=\"container mx-auto text-center leading-relaxed\">Assessing the completeness, accuracy, and reliability of the emissions data reported.</div>","disabled":false},{"id":6,"name":"Documentation and Data Source Evaluation","text":"<div class=\"container mx-auto text-center leading-relaxed\">Evaluating the documentation process and data sources used for calculating and reporting emissions.</div>","disabled":false},{"id":7,"name":"Regulatory Compliance Assurance","text":"<div class=\"container mx-auto text-center leading-relaxed\">Ensuring all regulatory timelines and requirements are met as stipulated in SB 253.</div>","disabled":false}]