California has been at the forefront of climate action in the USA, and the regulatory landscape for carbon accounting is rapidly evolving. With new disclosure laws like SB 253 and SB 261 coming into effect, companies are now required to measure, manage, and report their greenhouse gas emissions. These regulations not only aim to increase transparency but also drive businesses towards more sustainable practices.
At Clenergize, we specialize in helping companies navigate this complex landscape. Our team of ESG experts can assist with all aspects of carbon accounting, from data collection and GHG inventory preparation, emissions calculations to strategy development and compliance reporting. We understand that each company is unique, and we tailor our services to meet your specific needs. With our deep understanding of California’s regulatory environment and our commitment to sustainability, we can help your company achieve its carbon reduction goals and stay ahead of the curve.
Clenergize recognizes that ESG reporting encompasses a broader scope than just carbon assessment. Our team of experts can assist companies with various aspects of ESG support to drive sustainability and responsible business practices.
At Clenergize, we understand that ESG reporting is a critical component of long-term business success. Our comprehensive ESG support services empower companies to go beyond carbon assessment and embrace a holistic approach to sustainability and responsible investing.
Navigate the complexities of ESG reporting and compliance with ease using our proprietary digital platform, Clenergize ESG+. Our all-in-one solution streamlines data collection, analysis, and reporting, empowering your business to track ESG performance, meet regulatory requirements, and achieve your sustainability goals.
SB 253, also known as the Climate Corporate Data Accountability Act, requires companies with annual revenues over $1 billion doing business in California to disclose their Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions. Reporting begins in 2026 for Scope 1 and 2 emissions (covering the 2025 fiscal year) and in 2027 for Scope 3 emissions.
SB 261 requires companies with annual revenues over $500 million operating in California to disclose climate-related financial risks and their mitigation strategies. The disclosures, starting in 2026, must align with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
Scope 1: Direct emissions from owned or controlled sources (e.g., on-site fuel combustion). Scope 2: Indirect emissions from the purchase of electricity, steam, heat, or cooling.Scope 3: All other indirect emissions in a company’s value chain, including supply chain emissions, transportation, and product lifecycle emissions.
Non-compliance will result in penalties from the California Air Resources Board (CARB). SB 253: Fines up to $500,000 per reporting year. SB 261: Fines up to $50,000 per reporting year. Additionally, companies risk reputational damage and potential loss of investor confidence.
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