The days when major businesses and corporations didn’t have to disclose their environmental actions are over. Companies must now show their commitment to reducing greenhouse gas emissions.
This is because governments worldwide, from the European Union to the state of California, require more companies to report their GHG emissions to regulators.
For instance, the EU’s emissions trading system requires selected industrial sectors to monitor and report their emissions and participate in a carbon market. Meanwhile, new laws in California, such as the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261), require reporting company emissions and publishing a climate-related financial risk report, respectively. These are just two examples of how regulators are holding companies accountable for their actions toward reducing emissions.
But corporations must not only comply with regulations by showing what steps they’re taking to reduce emissions. More and more investors and customers are also demanding that organizations develop Environmental, Social, and Governance (ESG) standards that seek to develop and implement sustainability initiatives throughout a company’s operations.
Businesses might be intimidated by this new regulatory landscape, particularly if they’re still at the initial stages of developing a robust sustainability regimen internally, because of the expertise required to track and report GHG emissions. However, in response to this new regulatory environment, companies like Greenabl are stepping up to help businesses navigate these evolving reporting requirements successfully.
The Regulatory Landscape: Key Developments in Emissions Reporting
One of the latest regulatory developments is the passage of California Senate Bill 219, which regulates climate corporate accountability and climate-related financial risk as they both relate to greenhouse gases. SB 219 is actually an update of two California laws we mentioned earlier, SB 253 and SB 261. SB 219 amends these two laws; California Gov. Gavin Newsom signed SB 219 into law in September 2024, while SB 253 and SB 261 were signed into law in October 2023.
SB 219 is important because it is significant in California’s push for carbon transparency and reporting. It requires companies to report GHG emissions and provide accurate carbon footprint data. Specifically, according to the law’s language, the California Air Resources Board is charged with developing and adopting regulations requiring a reporting entity to annually disclose Scope 1, Scope 2, and Scope 3 emissions.
The difference between SB 219 and earlier bills is that the promulgation of reporting rules under SB 253 has been delayed to July 1, 2025, from an earlier deadline of Jan. 1, 2025. However, even though that deadline for California regulators has changed, the reporting deadlines for when companies will be required to make GHG emissions disclosures remain unchanged.
California’s new regulations are just part of a broader push by governments worldwide to hold businesses accountable in their emissions reduction efforts. Similar regulations have been developed in the EU, including the EU’s Corporate Sustainability Directive (CSRD), which seeks to “foster sustainable and responsible corporate behaviour in companies’ operations and across their global value chains,” and the European Green Deal, which calls for no net emissions of greenhouse gases by 2050.
Indeed, the number of jurisdictions implementing regulations similar to California’s and the EU’s is growing, as is the trend toward stricter ESG reporting. This means that companies will need to develop strategies that allow them to collect and report accurate emissions data.
Regulatory Compliance Begins with Accurate Supply Chain Emissions Data
Given the mounting pressure to comply with ESG targets and emissions reporting requirements, the need for accurate and transparent data to ensure compliance with evolving regulations becomes paramount.
But what exactly does having accurate and transparent data mean? The answer is actually so much more than just correct calculations. Capturing accurate data transparently includes being able to demonstrate clear data collection methods for supply chain emissions. It also includes the awareness that companies that fail to comply with reporting regulations risk penalties and reputational damage. Capturing accurate data also relies heavily on continuous monitoring to ensure the best results.
To ensure that all these targets are being met, companies should consider how technology can help to capture accurate data. And this is where we come in. Our job at Greenabl is to provide you with seamless supply chain and transportation carbon reporting solutions. Our platform provides you with access to real-time data, analytics, and reporting that align with regulatory requirements. At the same time, the tools we’ve developed empower companies to measure and report emissions accurately and with the transparency that customers, clients, and investors value.
Adapting to Evolving Reporting Requirements: Three Practical Steps for Companies
If your company does business in California or the EU, be prepared to report your Scope 1, Scope 2, and Scope 3 emissions to regulators. But even if your organization’s operations and footprint fall outside these jurisdictions, it’s still good business to track your emissions because customers and investors are watching companies’ dedication to reducing GHG emissions and fulfilling ESG goals.
Below are some specific steps that organizations can take to establish or maintain an internal emissions monitoring program that will ensure compliance with emissions reporting requirements.
Step 1: Assessing Current Compliance and Data Gaps
To establish a robust emissions reporting regime internally, it’s helpful to first take into account what measures your company already has in place when it comes to tracking emissions and communicating the results. What are your current ESG reporting practices? Answering this question helps you to identify gaps in data collection, measurement, and reporting. Even if your company doesn’t have a program in place, establishing a starting point will allow you to see how far you’ve progressed.
At Greenabl, we help companies establish a baseline for emissions and track their progress. Our platform provides access to data analytics that monitor and measure decarbonization efforts over time. Working with our experts allows you to discuss and get feedback on potential operational solutions to mitigate GHG emissions.
Step 2: Implementing Transparent Data Collection and Reporting
Once an emissions baseline has been established, the next step is developing a transparent data collection and reporting process so that you and other stakeholders can see where emissions reductions are coming from. To do this, you need integrated systems for seamless data collection and reporting across the supply chain.
Greenable’s emissions data collection methodology, informed by the reputable and vetted GLEC Framework (GLEC stands for Global Logistics Emissions Council), ensures consistent and verifiable data for compliance. This methodology is grounded in the harmonized calculation and reporting of GHG footprints within logistics and across transportation modes.
Step 3: Ongoing Monitoring, Adjustments, and Reporting Compliance
After establishing a data collection and reporting process, the next step is to conduct regular monitoring and make adjustments as needed to ensure ongoing compliance.
If you work with us, we’ll provide you with real-time updates and customizable reports to ensure continuous compliance with SB 219, EU regulations, and other global standards. You can have peace of mind that you are reducing GHG emissions and that you have data, documentation, and narratives to show just how far you’ve come toward meeting your emissions reduction targets.
The Time for Reporting GHG Emissions is At Hand
As businesses face increasing pressure from regulators and stakeholders to meet ESG reporting requirements, ensuring compliance with emissions and sustainability regulations has never been more critical.
This article explores how evolving laws like California’s SB219 and the EU’s Corporate Sustainability Reporting Directive shape the regulatory landscape. With accurate emissions data at the core, businesses must leverage technology to meet these requirements. Greenabl’s platform offers seamless emissions reporting and transparency, helping businesses stay compliant.
Contact us today to learn how Greenabl can help you establish a robust emissions reporting regimen.
