California's New Emissions Reporting Mandate for Large Businesses
In a landmark move, California recently enacted the Climate Corporate Data Accountability Act, impacting public and private enterprises with revenues exceeding $1 billion.
The mandate encompasses scope 1, 2, and 3 emissions, covering direct, indirect, and other indirect greenhouse gas (GHG) emissions.
Scope 1 emissions are the greenhouse gas emissions that an organization produces directly, such as from operating its vehicles or running its chillers and boilers.
Scope 2 emissions, on the other hand, are the indirect emissions that result from the generation of energy purchased and used by the company. For instance, the emissions generated from the production of electricity used in buildings would fall into this category.
Scope 3 encompasses emissions that are neither produced by the company nor the result of activities from assets it owns or controls, but rather from activities it is indirectly responsible for along its value chain, such as employee commuting emissions.
In 2026, companies must report scope 1 and 2 emissions for the 2025 fiscal year. Scope 3 emissions reporting will follow in 2027. Utilization of the Greenhouse Gas Protocol is mandated for emissions reporting. Independent third-party verification is required for all emissions reports. Emissions data must be submitted through an online platform.
At ENERlite Consulting, we understand the complexities of emissions reporting and offer tailored solutions to meet these new requirements. Our specialty falls within Scope 1 and 2, calculating carbon emissions from buildings due to their operation, such as lighting, and air conditioning; and assessing the carbon emissions of the fuel sources used in buildings. We help organizations develop actionable plans to reduce their carbon footprint, aligning with sustainability goals. Partner with ENERlite Consulting to start your journey towards sustainable practices!
