G&A's Sustainability Highlights ( 4.1.2025 )
NORTHAMPTON, MA / ACCESS Newswire / April 10, 2025 / The countdown has started for the implementation of the State of California's corporate climate disclosure rules, SB 253 and SB 261, which are coming into effect in January 2026. Companies doing business in California that meet certain revenue thresholds will need to disclose carbon emissions and climate-related financial risks, and obtain third-party assurance of their emissions data by a verifying company.
More recently, a bill was introduced in the California Legislature that would extend climate disclosure rules to cover major suppliers doing business with the State. If enacted, SB 755 would require suppliers with over $25 million in state contracts to report their climate-related financial risks and Scopes 1-3 carbon emissions beginning in 2027, and suppliers with $5 to $25 million in State contracts to report their Scopes 1-2 emissions.
A first-of-its-kind analysis from Governance & Accountability (G&A) Institute and supporters Ceres, Carbon Accountable, and Persefoni, reveals that most of California's largest state suppliers do not yet disclose key climate-related information. This research provides the first industry-wide benchmark assessing how major suppliers representing billions of dollars in procurement spend are aligned with California's enacted and proposed climate disclosure regulations.
"Not all the suppliers in our analysis are in scope for reporting under SB 253 and SB 261, but most would be required to report under SB 755," said Louis Coppola, CEO and & Co-Founder at G&A. "Our research finds low voluntary reporting rates among current suppliers, indicating a lack of readiness to comply with the proposed regulation. With SB 755 on the horizon, our research provides a critical baseline to measure the progress of supplier readiness over time."
Key findings of the report show that just 25% of California's top suppliers report Scopes 1-2 emissions and 18% report Scope 3 emissions, with only 10% obtaining third-party assurance for their reported emissions. In addition, just 17% of top suppliers conducted climate-related risk assessment aligned with the Task Force on Climate-related Financial Disclosures (TCFD).
These low levels suggest that state agencies, procurement teams, and policymakers should proactively drive supplier readiness by providing guidance on the specific requirements of each bill and their applicability. This research also highlights the need for education on the complexities of climate reporting, and support for accurately measuring emissions and conducting climate-related risk assessments.
"Suppliers must do their part to help California achieve its ambitious climate goals," said Catherine Atkin, Director and Co-Founder of Carbon Accountable, a climate data initiative and co-sponsor of SB 253. "This analysis helps clarify where industry gaps exist and where targeted action is needed."
"Institutional organizations, ranging from finance institutions to corporations, universities to government agencies and more are actively reshaping their procurement processes around climate resilience," said Annie Roberts, SVP Climate Consulting at G&A Institute. "They're expecting suppliers not just to disclose carbon emissions, but also to proactively manage climate-related business risks and build adaptive capabilities. Since every organization contributes to someone else's Scope 3 emissions, there's now an essential business imperative to be transparent and prepared when it comes to emissions reporting and climate strategy."
G&A's team is prepared to assist companies as they prepare for the implementation of SB 253 and SB 261, and to help suppliers understand the potential requirements under SB 755. For more information contact us at: info@ga-institute.com.
This is just the introduction of G&A's Sustainability Highlights newsletter this week. Click here to view the full issue.
View additional multimedia and more ESG storytelling from Governance & Accountability Institute on 3blmedia.com.
Contact Info:
Spokesperson: Governance & Accountability Institute
Website: https://www.3blmedia.com/profiles/governance-accountability-institute-inc
Email: info@3blmedia.com
SOURCE: Governance & Accountability Institute
View the original press release on ACCESS Newswire
