SB 253 (Climate Corporate Data Accountability Act) Fact Sheet – 1.24.23
SUMMARY
Senate Bill 253, the Climate Corporate Data
Accountability Act, would require all US-based
corporations with annual gross revenues of $1 billion
USD or greater that do business in California to
publicly disclose their greenhouse gas (GHG)
emissions inventory each year in a manner easily
understandable and accessible to the people of
California. These corporate disclosures would be
submitted to an emissions registry and posted online
for public viewing. To ensure accurate and truthful
reporting of a corporation’s complete carbon
footprint, companies would be required to submit
their disclosures to an audit. The California Air
Resources Board (CARB) will also contract with an
outside entity to prepare a one time report discussing
the GHG emissions within the context of state GHG
emissions reductions and climate goals.
BACKGROUND
California has been at the forefront of climate policy
for decades, establishing renewable energy
requirements for electricity providers, committing to
preserve 30% of California’s lands in their natural
state, and setting and achieving ambitious emission
reduction targets. These reductions were partially
met, and continue to be bolstered by the emission
reporting requirements as laid out in the California
Global Warming Solutions Act. These requirements,
however, only apply to electricity generators,
industrial facilities, fuel suppliers, and other major
emitters, missing many sources of corporate
pollution. Without the same requirements for these
corporate entities, California is left without the proper information needed to regulate, and consumers are
left in the dark about the climate impacts of their
business decisions. The first step needed to drive
down the global corporate carbon emissions that
impact the health of California’s residents and its
natural environment is expanding reporting
requirements beyond what California currently has in
place.
PROBLEM
Carbon emissions are not being reduced at the scale
and pace required to avoid the worst impacts of
climate change in California and across the globe.
To properly address this challenge, policymakers and
citizens need a clear, accurate representation of real- time emission data. However, many of the largest
corporations doing business in California are not
subject to carbon reporting laws and those that
currently report their emissions often do not report
their full GHG footprint. Rather, a subset of their
activities and subsequent emissions are reported,
leaving out crucial aspects of their supply chain and
operations. The result is a continuing lack of
transparency from corporate polluters, and an
inability to properly regulate them due to a lack of
accurate information.
The people and communities of California have a
right to know about the sources of carbon pollution
by some of the world’s most profitable corporations
that do business in California, in order to make
informed decisions about the impact of their choices
when purchasing, patronizing and investing in these
corporations.
SOLUTION
SB 253, the Climate Corporate Accountability Act,
would provide a first in the nation, comprehensive,
public reporting of the GHG emissions inventories for
corporations with revenue over $1 billion who do
business in California, and would enhance
California’s position as a global leader in carbon
accountability and reporting. Companies subject to
the Act would, from 2026 on, be responsible for
annually reporting a complete GHG emissions
inventory, aligned with the GHG Protocol,
Senator Scott Wiener, 11th Senate District
Senate Bill 253 – Climate Corporate Data Accountability Act
SB 253 (Climate Corporate Data Accountability Act) Fact Sheet – 1.24.23 encompassing three scopes: first, their direct
emissions, including fuel combustions; second, their
emissions from purchasing and using electricity; and
third, indirect emissions including their supply chain.
The reports will be made public on a digital platform
that allows consumers and other stakeholders to see
individual reports as well as aggregated data in a
manner that is easily understandable and accessible.
CARB would have one year to promulgate
regulations and would convene a panel of subject
experts and diverse stakeholders to advise the agency
on how reporting should be structured. Upon
adoption, corporations subject to the Act would have
one year to comply with the regulations to disclose
and report their emissions on an annual basis. CARB
would also contract out a one-time report on the
public GHG disclosures made by reporting entities
that includes consideration of these public disclosures in the context of existing state climate goals.
Public access to this critical corporate climate
pollution data would enable informed decision
making when purchasing from and patronizing these
companies. Data disclosure can also inform future
regulation and lead to the creation of market-based
incentives that encourage innovative approaches to
carbon reduction.
Transparent emissions reports would enable
communities and regulators to take action to more
effectively target corporate reduce polluters that are
currently under-reporting or not reporting at all.
SUPPORT
- Carbon Accountable (Sponsor)
- California Environmental Voters
(Formerly CLCV) (Sponsor)
- CERES (Sponsor)
- Greenlining Institute (Sponsor)
- Sunrise Movement, Bay Area Chapter
(Sponsor)
- Patagonia
- IKEA USA
- Sierra Nevada Brewing Co.
- Everlane
- Grove Collaborative
- Dignity Health
- Avocado Green Brands
- Climate Action California
- 350 Bay Area Action
- Citizens’ Climate Lobby, Santa Cruz
- California Nurses for Environmental Health
and Justice
- Fossil Free California
- Avocado Green Brands
- Dignity Health
- Everlane
- Grove Collaborative
- Sierra Nevada Brewing Co.
- Patagonia
- San Fernando Valley Climate Reality
Project
- Hammond Climate Solutions Foundation
- Climate Hawks Vote
- Californians Against Waste
- 350 Sacramento
- Active San Gabriel Valley
- Climate Action Campaign
- Climate Equity Policy Center
- California Interfaith Power & Light
- Move LA
- Natural Resources Defense Council
- San Francisco Baykeeper
- Sacramento Area Congregations Together
- Asian Pacific Environmental Network
- 1000 Grandmothers for Future Generations
- Sunrise Movement San Diego
- Sunflower Alliance
- Coalition for Clean Air
- California Reinvestment Coalition
- San Diego 350
- Californians for Energy Choice
- Friends of the Earth
- Friends Committee on Legislation of
California
- Mono Lake Committee
- Planning and Conservation League
- Greenbelt Alliance
- 350 Conejo/San Fernando Valley
- Transformative Wealth Management, LLC
- Voices for Progress
- The Climate Center
- Pesticide Action Network
- CleanEarth4Kids.org
SB 253 (Climate Corporate Data Accountability Act) Fact Sheet – 1.24.23 - Human Impact Partners
- 350 Marin
- Green New Deal at UC San Diego
- ClimatePlan
- Environmental Working Group
FOR MORE INFORMATION
Tate Hanna, Policy Analyst
Email: [email protected]
Phone: (916) 651-4011