What are the best practices for communicating changes to your greenhouse gas emissions results?

How to Communicate about Changes in your GHG Results

Increasing numbers of organisations are either being required to, or are voluntarily opting to calculate their greenhouse gas emissions. This means that they’re armed with the information needed to implement sustainability measures to reduce their carbon footprint. 

Transparency and communication with stakeholders is a crucial component of any organisation's net zero journey - this means that not only should an organisation communicate their final carbon footprint result, but they should also communicate any changes in the interim. So what are the best practices for communicating changes to your GHG results? 

👉 In this article we’ll cover the scenario where an organisation has already carried out a greenhouse gas assessment (GHG assessment), but their results have changed in the interim and they now want to communicate these changes. 

First up, to provide a bit of context, let's quickly go over what a GHG assessment is and what it is used for. 

A GHG assessment is an assessment of an organisation's activities in order to work out their carbon footprint. It’s calculated by working out the emissions that arise from various activities -  including the production of a product or provision of a service - using standardised methods. 

An organisation may be required by law to carry out a GHG assessment, however it’s often something that companies voluntarily opt to do as it provides the opportunity to identify carbon emission reduction opportunities, to showcase their commitment to reducing their environmental impact, and to take part in voluntary GHG programs such as the ISO certifications. 

Certain national and international regulations may require that a company carries out an assessment of their carbon emissions. Usually, this is because the company is of a certain size, but we’re seeing a global trend whereby the scope of emissions reporting is expanding. 

In the United Kingdom for example, under the SECR, larger companies (companies listed on a public exchange, large unquoted companies, and large LLPs) must report on their energy use and carbon emissions (scope 1 and 2). 

Currently in the US, the GHGRP (Greenhouse Gas Reporting Program) requires certain organisations who are classified as being large GHG emitters, to provide an annual report on their GHG emissions. However, reporting obligations are set to expand: not only did the Biden-Harris Administration recently propose the introduction of new regulations that would require major Federal contractors to disclose their GHG emissions, the SEC has also proposed rule changes that will enhance and standardise climate-related disclosures for investors. 

In Europe, the European Union introduced the Corporate Sustainability Reporting Directive (CSRD), which requires all large companies and all listed companies to disclose information on the risks and opportunities arising from social and environmental issues, alongside disclosure of their carbon emissions. Individual EU countries may also enact their own reporting requirements nationally.

An organisation may need to carry out a GHG assessment In order to meet the demands of mandatory reporting requirements, to achieve a voluntary certification, or simply because a company wishes to reduce its carbon emissions. 

Whatever the reason, carbon accounting is the first step in carrying out this assessment. Carbon accounting is the process of measuring the amount of GHG emissions a company is responsible for. This helps a company to understand which activities are the most carbon intensive and therefore allows them to establish a strategy to reduce their emissions in the longer term. 

Carbon accounting can be complex and time-consuming, this is why companies specialising in carbon accounting - like Greenly - are a great way to accurately measure carbon emissions and monitor emissions in real time. 

In what circumstances might a company’s GHG results change? 

It’s not unusual for a company who has previously carried out a GHG assessment to find itself in a situation whereby the results have changed. There are a number of reasons for this: 

Depending on the industry, organisation, and company activities, it can be difficult to obtain all the information required to complete a carbon assessment with 100% accuracy. The complexity of the task means that despite best efforts data may be missing or inaccurate. For example, your organisation may not have access to tenant utility data one year, but develop a landlord-tenant data sharing practice the following year to improve the reporting.

There are two main methods used to calculate carbon emissions. The first is the spend based method which works by taking the monetary value of a purchased good or service and then multiplying this value by a relative carbon emission factor, in order to calculate the amount of greenhouse gas emissions produced. 

The activity based method on the other hand uses data to establish the exact units of a certain material or textile that a company has purchased. This means that it provides a more accurate carbon assessment than the spend method, however, it’s also more time consuming and complex. 

It’s possible that a company calculates their carbon emissions using the spend based method in the first instance (or a hybrid version), and then later decides to re-calculate emissions by conducting additional activity based studies for its biggest emission sources to increase the precision of their report.

To read more about these two different carbon accounting methodologies and Greenly’s preferred approach, check out our article on the topic. 

Another example of a scenario where a company may wish to update its GHG results is where the scope of the emissions is expanded. 

Scope 1 and 2 emissions are the most common emissions categories, and some companies choose to focus on these alone, leaving out scope 3 emissions (often regulatory reporting requirements cover scope 1 and 2 only). However, since scope 3 emissions cover a company’s value chain, these emissions account for an average of 75% of a company’s GHG emissions, which means that by omitting scope 3, it’s impossible to paint the whole picture. 

In these scenarios an organisation may therefore choose to re-calculate its emissions - this is something that Greenly can help with. Our climate experts and state of the art technology allow us to provide clients with fast and accurate carbon assessments. 

Our team also has the expertise to help you implement a plan of action to kick start your net zero journey. 

To find out more about how Greenly can help, why not book a commitment free demo with a member of our team. 

How should a company communicate these changes? 

When a company chooses to re-do its GHG assessment, how should it communicate these changes? We’ve laid out a few best practice principles for organisations to keep in mind: 

One of the most important elements of communicating any changes in GHG assessment results, is to be completely transparent. This means providing sufficient detail and explaining where the changes come from. Transparency should be the golden rule when it comes to communicating on anything that concerns emissions or the environmental impact of an organisation.

It’s important to be upfront and clear about the emissions scope of the GHG assessment. Be specific about what segments of the organisation the assessment covers, and what emission scopes or categories are included or excluded - for example if only scope 1 and 2 emissions are covered by the assessment this should be made clear, and it should be clearly communicated that scope 3 emissions are excluded.

Outline the methodology used to calculate the organisation's emissions (for example ISO 14 064, GHG Protocol, Bilan Carbone etc).

Communicate the plans for the organisation with regards to emissions over the coming year. For example, are there any plans to improve on emissions reporting methods, or data sources? If the company previously made estimates based on industry averages due to missing data, but intends to leverage new data in the future, it may be beneficial to inform your audience about these upcoming plans and the resulting potential changes to your historical GHG results.

Climate experts are warning that the Earth is heading toward a “climate danger zone,” and many scientists say greenhouse gas emissions are to blame. Here’s what greenhouse gases are and how they contribute to climate change.

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What are greenhouse gases and how do they contribute to climate change?

Keeping track of carbon emissions is an ongoing process. Organisations should continuously look for ways to improve the accuracy of their emissions data in order to increase the accuracy of their carbon footprint. This gives an organisation the best fighting chance of reducing their carbon emissions and improving their sustainability. 

It’s also important that organisations look to maintain open and transparent communication when it comes to their carbon footprint. This means that not only should they communicate their final result, but that they should also be transparent when it comes to the processes they follow to calculate emissions, as well as any changes in their results or scope. By fostering an open line of communication with stakeholders, organisations can maintain good relationships and ensure that they’re abiding by regulatory reporting requirements. 

At Greenly we can help you to assess your company’s carbon footprint, and then give you the tools you need to cut down on emissions. Why not request a free demo with one of our experts - no obligation or commitment required. 

If reading this article has inspired you to consider your company’s own carbon footprint, Greenly can help. Learn more about Greenly’s carbon management platform here. 

ADEME recently released a proposal to shift from the use of scope emissions to a new methodology that will make use of emissions categories. How and why would these new emissions categories prove useful in the race to reduce global emissions?

Emissions Categories: All you Need to Know in 2024

If you’re into carbon accounting, odds are – you already know a lot about scope emissions, but emissions categories may be a new one for you if you have yet to read about the new proposal by ADEME to improve the precision of carbon assessments. 

What are the new emissions categories presented by ADEME, and how would they help to make carbon assessments more accurate? 

Carbon accounting platforms often make use of emissions categories or scope emissions in order to calculate the carbon footprint of a company, and how precise that measurement is will ultimately allow for a better understanding on how to reduce those emissions most effectively. 

If the Greenhouse Gas Protocol is to move forward with ADEME’s proposal, emissions categories would replace the current functionality of scope emissions. 

Before the release of this proposal by ADEME, greenhouse gas emissions were assessed through the use of scope emissions – or three previous categories of emissions that broke down the entities in which excessive emissions were being produced.

Before emissions categories were proposed, carbon accounting platforms solely relied on scope emissions, or “categories” of different emissions in order to better understand where excessive emissions and carbon activity are coming from.

All scope emissions are all different from one another – but scope emissions 1, 2, and 3 are more collectively alike to one another in comparison to scope 4 emissions.

👉Ultimately, carbon accounting platforms make use of scope emissions to make the process of measuring a carbon footprint easier in order to encourage those to get started on their climate journey. 

Scope emissions are broken down into 4 total categories:

Scope 1 emissions refers to emissions that are caused as a direct result of industrialization production or the vehicles used by a company. Scope 1 emissions also refers to any uses of non-renewable energy as well – like the emissions due to fuel combustion from company owned vehicles.

Scope 2 emissions are the emissions that are created by energy consumption – such as the electricity necessary to power an office building, or the air conditioning or central heating that runs in the office. 

Scope 3 emissions refer to any emissions produced that don’t fall under scope emissions 1 or 2. Scope 3 emissions are infamously the most difficult emissions to measure, as they occur due to activities outside of the company itself: such as from business travel or how employees choose to get to work. 

Scope 4 emissions, or avoided emissions, refer to the emissions that are reduced outside of a value chain or a product's life cycle. An example of scope 4 emissions are the emissions that are avoided from those who work remotely and avoid contributing to the energy costs necessary to power an office building. Reporting scope 4 emissions isn’t required in the way the scope 1, scope 2, and scope 3 emissions often are – but they can prove useful for companies seeking to improve upon their sustainability and achieve their emission reduction goals faster. 

Scope emissions have been used by GHG, or the Greenhouse Gas Protocol, since the late 1990s – with scope 3 emissions being introduced in 2011 and scope 4 emissions more recently. 

👉If the Greenhouse Gas Protocol is to apply this new methodology by ADEME, scope emissions would no longer serve as the most precise method of calculating carbon emissions. 

What would be the main goal of the emissions categories?

The new proposal suggested by ADEME is meant to make carbon assessments more precise with emissions categories than they would be by using scope emissions. 

👉 Remember, the three main scope emissions will become obsolete from the carbon footprint methodology used by ADEME – but the Greenhouse Gas Protocol has yet to decide to implement this new method of dividing carbon emissions and calculating a carbon assessment. 

This new method of calculating carbon assessments and emissions categories is being released alongside the most recent report published by the IPCC, or the Intergovernmental Panel on Climate Change – which states that in order to successfully reduce global warming from 2°C to 1.5°C, the world has to cut its current rate of emissions in half by the time 2030 rolls around. 

👉 Ultimately, the main goal of the new emissions categories proposed by ADEME is to help reduce emissions at a faster rate than it would be possible to do so with the traditional scope emissions – as climate change continues to grow out of hand. The proposal for emissions categories will seek to help companies reduce their emissions faster than previously intended in order to adhere to the advice provided by the IPCC. 

How will the new emissions categories work and be divided?

The new emissions categories will seek to improve the process of organizing emissions, such as by seeking to align the practices of emissions categories with the ISO 14064 standard and returning to the original methodology developed by ADEME.

The emissions categories will be split into six different categories as opposed to original three scope emissions that were previously used.

The first category, previously referred to as scope 1, will refer to emissions directly created from stationary combustion sources, or from sources owned or controlled by the entity carrying out the GHG assessment – such as the use of fossil fuels. The first category of emissions categories will also include emissions from mobile combustion sources, such as from a car or a truck, from physical or chemical processing, fugitive emissions, biomass, and from industrial processes – such as when there is a leak somewhere on the grounds of the company. This category refers to direct greenhouse gas emissions, and is divided into five subcategories. 

The second category will refer to the indirect emissions as a result of energy consumption, such as electricity usage, the power created by a nuclear powered plant, renewable energy sources, or other electrical operations. The two subcategories for this category are indirect emissions from electricity consumption, and indirect emissions from energy consumption.

The third category will refer to emissions created through transportation and include five subcategories: the upstream and downstream transportation of goods, employee commuting, visitor and client transport, and business travel. 

The fourth category will refer to the emissions created from purchased products, in a similar fashion to the previously used scope 3 emissions category from the scope model – which are infamously the most difficult of the scope emissions to measure and reduce. This is because the fourth category of the new emissions categories will refer to the emissions created from raw materials and other miscellaneous supplies, which are often emissions out of jurisdiction for the company. Similar to scope 3 emissions, the new fourth category will also include the emissions created from leased assets, purchased services, the emissions created from waste management, and the environmental impact of a product or service after it has left the grounds of the company. The official four subcategories are: purchased goods, purchases services, capital goods, waste management, and upstreamed leases

The fifth category will specifically refer to the indirect emissions created from sold products, also in a similar manner to which scope 3 emissions were used in the previous carbon assessment model. Category five of the emissions categories will help to calculate the emissions created from products sold such as by determining the environmental impact of the amount of energy and materials used to create the product, referring to downstreamed leased assets, and the overall lifecycle of a product. The fifth category will also refer to the investments and financial activities of a company and the emissions they create. Ultimately, there will be four subcategories for category five: investments, downstreamed leased assets, end-of-life treatment for sold products, and the use of sold goods.

The sixth and final category of emissions will refer to the indirect emissions created by a company. Again, in a similar manner to how scope 3 emissions functioned – the last category in the new emissions categories will allot for all the emissions that are created due to the company, but aren’t able to perfectly fit into one of the five other emissions categories. There is only one subcategory for category six.

What would be the benefits of the Greenhouse Gas Protocol adapting these new emissions categories proposed by ADEME?

The Greenhouse Gas Protocol would benefit from adjusting their own scope emission models to the new emissions categories suggested by ADEME for several reasons. First off, the new emissions categories would account for all seven of the different types of greenhouse gasses: including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride. The new methodology provided by ADEME will allow for six precise steps to help improve the measuring of a company’s carbon footprint – in a more meticulous and detailed manner than scope emissions will be able to. This is because the new emissions categories allow for more significant emission reductions given the framework for this type of carbon calculation is more specific than scope emissions are. 

The new emissions categories could benefit the Greenhouse Gas Protocol as it will require for more precise data collection, and ultimately – a better understanding of the emissions produced, which allows for more effective ways to reduce emissions and help companies that seek the expertise of the Greenhouse Gas Protocol to adhere to their emission targets with success. 

In fact, many companies are required to complete a greenhouse gas assessment: such as companies employing over 500 people in metropolitan areas, companies in regions and overseas departments with over 250 employees, municipalities with over 50,000 inhabitants,  and other legal entities under public law that employ over 250 people. In other words, many people are required to complete greenhouse gas assessments – meaning that many companies could ultimately benefit from switching from the use of scope emissions to emissions categories to measure and reduce their emissions. 

How will the new emissions categories be implemented in 2023?

Despite the fact that these new emissions categories will be required as of 2023, the new emissions categories are being advertised as a transition plan. Therefore, it is imperative to keep in mind the human and financial resources necessary to transition to the use of emissions categories – as this new methodology is meant to serve as a long-term approach for carbon assessments. Companies are expected to monitor and adjust their targets accordingly from new understandings of their current emissions in accordance with the new emissions categories. 

In addition to this, companies are expected to follow through with significant changes to drastically reduce their emissions as a result of implementing the use of the new emissions categories – or at least commit to making an attempt to lessen the amount of emissions produced from at least 80% of their indirect emissions. Entities that fail to do so will face a hefty penalty – anywhere from €1,500 to €10,000, and  €20,000 for failing to comply a second time. 

Environmental legislation is getting tougher in order to adjust accordingly with the times, but with climate change becoming as serious of a threat as is – new measures like the emissions categories proposed by ADEME could help the Greenhouse Gas Protocol enforce better emission measurement, understanding, and overall emission reductions across the world. 

If reading this article about the new emissions categories in 2023 has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!

It can be hard to identify scope emissions and subsequently reduce them, but Greenly can help you take the concrete action necessary to properly determine where  – click here to book a demo and get started with your climate journey today. 

Greenly can help you make an environmental change for the better, starting with a carbon footprint assessment to know how much carbon emissions your company produces.

What is the California Climate Accountability Package, and how do SB 253, SB 261, and SB 252 help the state work towards their environmental goals?

California Climate Package: SB 253, SB 261, SB 252

California has been known for leading climate change movements not only across the country, but around the world –  and as the state of California is home to one of the largest economies on the globe, much attention has been brought upon California’s Climate Accountability that is currently under review by the State Assembly.

💡 Addressing climate risk via a reporting entity such as Senate Bill 253 can help ensure California and the global economy keep greenhouse gas emissions at bay to help address climate risk, improve climate related financial disclosures, and protect financial markets.

Climate related financial disclosures can help to reduce statewide greenhouse gas emissions, reduce climate risks, address a company's health and safety code, and encourage other businesses to reduce greenhouse gases.

What is the California Climate Accountability Package, and how do senate bills such as SB 253, SB 261, and SB 252 help the state work towards their climate goals, reduce emissions, and ensure sustainable and transparent business practices are employed?

What is the California Climate Accountability Act?

The California Climate Accountability Act, also referred to as the California Climate Accountability Package, is a group of bills that consists of three different but correlated bills: SB 253, SB 261, and SB 252 – all of which work together to help improve corporate transparency, reduce climate risk, and ensure companies do their part to disclose their emissions with the public.

Ultimately, the California Climate Accountability Package is focused on helping businesses in the state cultivate a greater sense of responsibility in regards to climate change.

💡 This is in addition to other protocols such as the California Air Resources Board (CARB), nonprofit climate reporting organization, the state air resources board, the California Consumer Price Index to address climate-related financial risks, and administrative hearings conducted pursuant to ensure people who don't abide by these senate bills will seek administrative penalties.

These bills in the California Climate Accountability Package will help to encourage businesses to take action and address climate change, as if the bills are to be passed – it would require thousands of businesses in California to report the scope 1, scope 2, and scope 3 emissions in addition to their climate-related financial risks. 

Delay to Implement SB 253, SB 261, and SB 252

Originally, these requirements were supposed come into play as early as December 2022, further illustrating the state’s commitment to climate reform. However, the bills have repeatedly been delayed – as the state struggles to come to an agreement. 

👉 In fact, it is important to note that as of 2024 – Governor Newsom has implemented a potential 2 year delay to implement these laws out of fear that some companies may not be prepared to face the upcoming administrative penalties imposed or to withstand climate related risks or climate risk disclosure as a result of inadequate or insufficient reports.

This being said, Newsom did sign SB 219 into law on September 27th, 2024 – which will ensure strict deadlines for SB 252 and SB 261.

Press conference announcing new legislation to hold corporations accountable to the state’s climate goals

Senators Wiener, Gonzalez and Stern Announce Climate Accountability Package

What is the goal of the California Climate Accountability Package?

According to senators in the state of California, the bills part of the Climate Accountability Package are meant to encourage sustainable and transparent practices such as ESG investing and disclosing climate-related risks.

In short, the bills in the Climate Accountability Package aim to join forces with the movement towards greater climate transparency – such as with the upcoming SEC disclosure rule.

As the SEC Disclosure rule continues to be delayed, California is determined to move forward with the bills part of the Climate Accountability Package – seeing as an alarming amount of emissions created by a state can be a result of the businesses activities alone. 

In addition to this, California has always been held to a high standard when it comes to leading environmental legislation – and many senators believe these bills could encourage other places in the world to hold themselves to a similar high standard. As a result, addressing these physical and transition risks can help to improve both global and local economies.

💡 In fact, the California Climate Accountability Package has been compared to the SEC climate disclosure rule – claiming to be giving the now well-known SEC disclosure rule a run for its money. Therefore, the goals of the Climate Accountability Package can be compared to other disclosure rules such as the pending SEC disclosure rule in the U.S. and the Corporate Sustainability Reporting Directive (or CSRD) in Europe.

How does the California Climate Accountability Package work?

The various bills part of the California Climate Accountability Package would work to ensure transparency and greater accountability on behalf of businesses by requiring businesses across the state of California to disclose greenhouse gases, business operations, and activities. 

Examples include needing to disclose their greenhouse gas emissions, climate related financial risk, and adhere to comprehensive risk disclosure requirements. 

💡 Ultimately, each bill in the Climate Accountability Package would focus on a different facet to work towards these goals for stronger climate accountability.

Senate bills SB 253, SB 261, and SB 252 would ultimately work together to elicit greater climate action and disclosures.

What are the requirements for the Climate Corporate Data Accountability Act (CCDAA)?

The California Climate Corporate Data Accountability Act (CCDAA) will require certain U.S. based public and private companies operating in the state of California to disclose their scope 1, 2, and 3 emissions starting in 2026.

👉 In 2026, companies will only need to share the scope 1 and scope 2 emissions data – with scope 3 emissions reporting not being required until 2027 (where companies will be subject to share their emissions data starting from 2026). 

In addition to this, the California Climate Corporate Data Accountability Act may require scope 3 emissions to be audited by a third party – a decision the California Air Resources Board (CARB) is set to make before January 1st, 2027, which is when an assurance requirement should already be established with a planned start date in 2030.

Hare are some additional requirements and rules to know for companies required to comply with the California Climate Corporate Data Accountability Act:

Potential Fines – Companies that fail to comply with the California Climate Accountability Act could be held responsible for fines of up to $500,000, as the violator can be fined up to $2,500 each day – but not exceed the $500,000 limit.

Early Preparation is Key – Although companies do not have to comply to until January 2026 with their emissions data from 2025, it is important for companies to get started with carbon management and disclosure reporting sooner than later to ensure proper compliance in the future – making this the perfect time to join us at Greenly to start managing and reducing your emissions today.

Publish Reports Adhering to the TCFD – Companies subject to the California Climate Corporate Data Accountability Act will have to prepare and release reports developed in conjunction with the Task Force on Climate-Related Disclosure Framework (TCFD). This will be compulsory for companies with revenue equal to or greater than $500M.

💡 Remember, the TCFD provides guidance for companies looking to address their current climate risk. At Greenly, we can already offer help with climate disclosures such as with the CSRD – and we plan to help clients adhere to protocols such as the California Climate Corporate Data Accountability Act in the future.

What are the three main senate bills part of the California Climate Accountability Package?

Summary: SB 253 Climate Corporate Data Accountability Act

Known as the most revolutionary and ambitious bill in the package, Senate Bill 253 would require various public and private companies in California to disclose their scope 1, 2, and 3 emissions. 

Companies keeping track of their emissions is essential to fighting against climate change, as it's hard to fix a problem when you don’t know the root cause of it. Companies that opt to recruit the use of a carbon accounting company like Greenly can gain better insight into where their emissions are coming from and how to better reduce them. 

In case you forgot, here’s a breakdown of each emission category, or the various “scopes” that both public and private companies with revenues greater than $1B USD will be required to report under SB 253:

Scope 1 emissions refer to direct emissions from owned or controlled sources.

Scope 2 emissions refer to indirect emissions from generating purchased energy.

Scope 3 emissions refer to all other indirect emissions that don’t fall under scope emissions 1 or 2, such as business travel, leased assets, or employee commuting. This requirement would not become mandatory under SB 253 until 2026 or 2027.

💡 SB 253 would allow a company’s entire supply chain to be monitored as companies required to report under SB 253 will need to report ALL their greenhouse gas emissions.

All the emissions to be disclosed under SB 253 will need to be verified by CARB, or the California State Air Resources Board – where all emissions data will also be made available on a public digital registry. This helps promote transparency, another primary goal of the California Climate Accountability Package.

Corporations must accelerate their decarbonization as of yesterday! Just 100 energy companies are responsible for 71% of total global industrial emissions. SB 253 would hold US corporations that do business in California to publicly report their full profile of greenhouse gas (GHG) emissions. With this level of transparency, we can hold corporations accountable and regulate their emissions.

What is SB 253? | Climate Corporate Accountability Act

Summary: SB 261 Climate-Related Financial Risk Act

SB 261, also deemed as the Climate-Related Financial Risk Act, will require all businesses in California to share their climate related-financial risks. SB 261 was inspired by the climate disclosure rules demonstrated by CALSTRS, or the California State Teachers Retirement System, and other major financial institutions that focus on the financial risks associated with climate change.

SB 261 would work in alignment with the values depicted in the Task Force on Climate-Related Financial Disclosure, or the TCFD. The demands required on behalf of SB 261 would be compulsory by December 2024.

💡 If passed, the Climate-Related Financial Risk Act (SB 261) would call for all companies doing business in California that have an annual revenue of $500 million or more to draft and submit a climate-related financial report in addition to their mitigation strategies.

In addition to submitting these climate-related reports, some companies would also need to publicly share their reports on their websites to adhere to the transparent values and goals of the California Climate Accountability Package. Various insurance companies or other businesses that may be overseen by the California Department of Insurance would be excluded from this requirement. 

👉 Ultimately, Senate Bill 261 will help to protect consumers from losing money if the cooperation they are associated with does not take climate-related risks into account.

Beginning in 1972 and every year since, California Environmental Voters (formerly California League of Conservation Voters) has pushed for environmental action in California. Watch how we have become one of the strongest voices in California climate advocacy in the last half-century.

#environmental #california #stopmotion #animation

California Environmental Voters: 50 Years of Climate Progress

Summary: SB 252 Public Retirement Systems & Fossil Fuel Divestment 

The last bill in the California Climate Accountability Package will make use of California’s public investment funds: such as the California Public Employees’ Retirement System (or CalPERS) and the California State Teachers’ Retirement System (or CalSTRS) in order to encourage business to fight against climate change while also safeguarding these imperative funds from the effects of engaging with the use of fossil fuels. 

SB 252 will do this by forbidding the California Public Employees Retirement System (CalPERS) or the California State Teachers Retirement System (CalSTRS) from making investments in over 200 different carbon-intensive companies by divesting their shareholdings by 2031.

Previously presented as SB 1173, SB 252 has higher hopes to be passed alongside the rest of the bills in the Climate Accountability Package.

👉 Ultimately, SB 252 will raise awareness to make use of climate-friendly investments, with the end goal hopefully being to influence how future investments are made. Those in support of Senate Bill 252 hope that SB 252 will finally put any doubts to rest regarding California's commitment to leading the movement against climate change.

Know Your Bill (Ep. 1 SB 252)

How are SB253, SB261, and SB252 related to one another?

Each bill in the California Climate Accountability Package is different, but they all support one another as the bills in the Climate Accountability Package each create opportunities to pursue individual efforts that could help to fight against climate change.

Here's a breakdown of how the bills in the California Climate Accountability Package are related to one another:

SB 252 will prohibit CalSTRS and CalPERS from investing in fossil fuels will inevitably sway them towards more green or ESG friendly investments. 

SB 261 will prevent companies from losing money or taking big financial gambles that they would be more inclined to do if it weren’t for the need to disclose their climate-related financial risks. 

SB 253 and its similarities to the SEC Climate Disclosure Rule will see companies becoming more mindful of their actions and influence them to create a plan to reduce their emissions. 

What is SB 253 and SB 261 and their relation to one another?

SB 253 and SB 261 could indirectly help companies required to report under SB 253, as more finances will become available to them to implement more expensive tools to fight against climate change – such as with a carbon capture and storage system.

💡 As of October 2023, both SB 261 and SB 253 have been signed into law – with the Governor of California, Gavin Newsom, having officially signed the California Cooperate Data Accountability Act (SB 253).

When co-working together, SB 253, SB 261, and SB 252 develop a powerful and tangible plan that will elicit necessary action from these companies contributing to California’s carbon footprint. Each bill individually succeeds at something climate related, but together – the standard for fighting against climate change is higher than ever before.

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    <h2>Comparison of SB 253, SB 261, and SB 252</h2>
    <table>
        <tr>
            <th>Bill</th>
            <th>Full Name</th>
            <th>Main Focus</th>
            <th>Requirements</th>
            <th>Implementation Date</th>
        </tr>
        <tr>
            <td>SB 253</td>
            <td>Climate Corporate Data Accountability Act</td>
            <td>Emissions Disclosure</td>
            <td>Requires companies to report Scope 1, 2, and 3 emissions</td>
            <td>Mandatory reporting by 2026 or 2027</td>
        </tr>
        <tr>
            <td>SB 261</td>
            <td>Climate-Related Financial Risk Act</td>
            <td>Financial Risk Disclosure</td>
            <td>Requires companies with annual revenues of $500 million or more to submit climate-related financial reports</td>
            <td>Mandatory by December 2024</td>
        </tr>
        <tr>
            <td>SB 252</td>
            <td>Public Investment Funds Climate Act</td>
            <td>Divestment from Fossil Fuels</td>
            <td>Prohibits CalPERS and CalSTRS from investing in over 200 carbon-intensive companies</td>
            <td>Divestment by 2031</td>
        </tr>
    </table>
</body>
</html>


Was the Climate Accountability Package Passed?

👉 Previously, there was no hard deadline in the works for when the California Climate Accountability Package was going to be officially passed – as it is difficult to determine the likelihood of any kind of climate legislation to be passed. 

On the upside, optimism may seemed to have helped in for SB 253 – as a bill with striking similarities to SB 253 was almost passed last year before falling short at the Assembly, and SB 253 was officially passed in October 2023. In addition to this, SB 261 was also passed this past fall and SB 252 was passed in May 2023.

Therefore, the good news is that the more support the bills in the Climate Accountability Package, (similar to the logic of supply and demand) the more likely future bills are to passed.

However, not everyone may be in favor of passing climate bills like SB 253, SB 261, or SB 252 – such as residents or business owners in California themselves. This is because while the California Climate Accountability Package would be a massive stepping stone in disclosing emissions and encouraging more climate-change friendly behavior amongst businesses across the state, the bills could also result in higher costs in order for businesses to comply with the new bills.

Seeing as all of the bills are passed now, only time will tell how SB 252, SB 253, and SB 261 will impact local businesses.

Overall, it is important to remember that the impact of the California Climate Accountability Package is yet to be determined until it is passed and employed into action – but the state’s determination to implement greater transparency and climate disclosures is certainly a strategy everyone should keep a close eye on.

💡 The best thing that companies in California can do as they await news of the bill’s passing is to develop an action plan to disclose their data today. 

It is already important to calculate and understand your carbon footprint or climate-related financial risks, but the Climate Accountability Package (if passed) is likely to accelerate this movement at an unprecedented pace.

It’s smart to get started on adhering to these upcoming requirements today, and Greenly can help you comply with the bills in the California Climate Accountability Package and more.

If reading this article about the California Climate Accountability Package, including SB 253, SB 261, and SB 252 has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!

Keeping track of all the current climate bills and future legislation to come can be challenging, but don’t worry  – Greenly is here to help. Click here to schedule a demo to see how Greenly can help you comply with all of the upcoming regulations relevant to your company. 

Click here to learn more about Greenly and how we can help you reduce your carbon footprint. 

After seeking opportunities to put her various creative passions to good use, she joined Greenly in mid 2022 as SEO copywriter for the U.S. blog to provide her American perspective on the climate change issues we face today.

Stephanie Safdie - Greenly

Stephanie Safdie holds a bachelor's degree in English Language & Literature from the University of Maryland College Park, where she specialized in multimedia studies and media literacy to write engaging content made for the internet. She previously worked as a social media content video creator, freelance copywriter, and continues to write SEO generated content for her travel website. After seeking opportunities to put her various creative passions to good use, she joined Greenly in mid 2022 as SEO copywriter for the U.S. blog to provide her American perspective on the climate change issues we face today. Her work at Greenly covers a wide variety of topics, such as the impact of popular culture events on the environment, offering unique ideas for sustainable development, and breaking down new climate legislation in simple terms. As Stephanie is passionate about linking the bridge between the everyday activities we love to do (such as travel, concerts, fashion, food, etc.) and the effect it has on the environment, she is pursuing further training for more in-depth journalistic endeavors on the environment in the future.

After starting her career at Greenly in 2022, she started a joined PhD between the startup and CentraleSupélec to improve company sustainabilty performance ratings.

Marine Kohler

Marine has an engineering degree from the French school of CentraleSupélec and a masters in Industrial Management from DTU. After starting her career at Greenly in 2022, she started a joined PhD between the startup and CentraleSupélec to improve company sustainabilty performance ratings.

Copywriter specializing in environmental thematics

Ines Gendre is a copywriter specializing in environmental issues. She joined Greenly's team in 2022.

Ines Gendre

Ines Gendre holds a master’s degree in marketing and began her career in the fast-moving consumer goods (FMCG) industry. After retraining, she joined Greenly in 2022 as a copywriter specializing in environmental issues. Ines brings her expertise to companies and individuals seeking to understand the challenges of climate change, the green transition, and their impact on society and the economy. Trained in key tools for developing climate strategies - such as Carbon Assessments, Life Cycle Analysis (LCA), and carbon offsetting - she will begin studying political science at Oxford University in England in January 2025.

Kara joined the team at Greenly in 2023 as SEO copywriter for the UK market.

Kara Anderson - Greenly

Kara Anderson holds an undergraduate law degree and a master’s degree in international law from the University of Glasgow and the University of Aberdeen, specializing in human rights and EU law, where she developed strong research and writing skills. After working at Ernst & Young as part of their audit graduate scheme and gaining experience in analytics, she transitioned to advertising, working with major global brands like American Express and Dove.
In 2023, Kara joined Greenly as a writer, focusing on sustainability and climate-related topics for the UK market. Her work spans a wide range of environmental issues, including climate science, sustainable development, and climate policy. Collaborating with climate scientists, Kara has produced data-driven investigations into key climate challenges. With a passion for international politics, sustainable development, and climate change science, she continues to build her expertise in the field and is currently pursuing further training in journalism.

Ben Field, Climate Action Strategist at Patch

Quentin Bourhis, Climate Expert at Greenly

Matthieu Vegreville

Matthieu is a 28 year-old graduate engineer from Ecole Polytechnique and Télecom Paris, with a background in data science at Withings. While there, he worked on watch activity detection algorithms, and developed a health study activity so that connected objects could be used to better monitor certain pathologies. He has long been involved in data science projects with his brother, who has the same training. Faced with the urgency of the climate crisis, he decided to put his know-how at the service of the environment. 

Arnaud Delubac

Arnaud, 26 years old, trained as a designer and in digital communication at INSEEC before joining the Master Entrepreunariat at ESSEC-CentraleSupélec. Passionate about social media since his teenage years, he has created some of the biggest Twitter communities in France before joining the digital communication team of the Prime Minister’s office in Matignon. It was at the Secretaries of State for Digital, Mounir Mahjoubi and Cédric O, where Arnaud directly managed the team, that he developed a strong conviction for the need to use technology to bring awareness to the greatest causes of our time.

Alexis Normand

Alexis is a 37 year-old graduate of HEC and Sciences-Po. After his studies, he spent 2 years working in public policy consulting. He then spent 6 years at Withings, a leading company in connected objects. While there, he continued the companies operations in Boston, USA, and created the company’s health department. After the company was bought by Nokia, he joined the startup Embleema by working through Techstars, one of the best startup incubators in the United States, where he developed a taste for entrepreneurship. His return to France was an opportunity to put all his experience at the service of the environment, during a crucial moment in the climate crisis.

Justine Dumont

Justine a toujours été passionnée de lecture et d’écriture. En 2019, elle parvient justement à faire de sa passion son métier, en devenant rédactrice web indépendante. Motivée par ses engagements écologiques, elle rejoint l’équipe de Greenly en 2022 afin de mettre ses compétences au service de la cause environnementale. 

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