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SB 253: Climate Corporate Data Accountability Act

January 12, 2024 – Updated April 5, 2024

On October 7, 2023, Governor Newsom signed Senate Bill (SB) 253: The Climate Corporate Data Accountability Act (CCDAA) into law, which requires large public and private companies with annual revenues greater than $1 billion that conduct business in California to publicly disclose their greenhouse gas (GHG) emissions. Following the GHG Protocol Corporate Accounting and Reporting Standard, emissions of GHGs, which include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and others, are quantified as belonging to a company or operation in three categories, or “scopes”:

• Scope 1 – GHGs emitted directly from a facility (e.g., on-site combustion in boilers and turbines);
• Scope 2 – Indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling; and
• Scope 3 – Indirect emissions not included in Scope 2, including emissions that occur in the value chain of the reporting company both upstream and downstream.

The CCDAA requires reporting of Scope 1 and 2 GHG emissions annually starting in 2026, with additional reporting of Scope 3 GHG emissions starting in 2027. Similar to the CCDAA, the already adopted European Union Corporate Sustainability Reporting Directive requires companies to report Scope 1, 2, and 3 GHG emissions starting in 2026. The recently adopted SEC Climate Disclosure Rule will also require companies to report Scope 1 and 2 GHG emissions in a phased-in compliance period starting in 2026, with the compliance date dependent on the registrant’s filer status and the content of the disclosure.

The specifics for implementation of the CCDAA are expected to be developed by CARB at a later date. It is expected that CARB will clarify exactly what entities will be subject to the act by defining the term “doing business in California,” as this term is not defined in SB 253.

Consumers and the public are increasingly advocating for greater transparency concerning corporate GHG emissions and GHG reduction efforts. Many businesses already publicly disclose their GHG emissions using internationally accepted accounting protocols. Some of these businesses are requiring their suppliers and customers to provide Scope 1, 2, and 3 GHG emissions data as part of their business disclosures.

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Yorke Engineering specializes in air quality and environmental consulting for stationary and mobile sources, including dispersion modeling, health risk assessments, permitting, emission inventories, air quality compliance systems, etc. Leveraging our extensive experience, Yorke stands ready to provide invaluable support in developing GHG emissions inventories and reports for deliverables.  Learn more on our website here: GHG Inventories, Footprints, and Plans | Yorke Engineering, LLC (yorkeengr.com).

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