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Associated Press
02-04-2025
- Business
- Associated Press
New Analysis of California's Top Suppliers Points to Impact of Proposed Climate Reporting Mandates
NEW YORK, April 2, 2025 /3BL/ - As California looks to expand corporate climate disclosure requirements with the newly introduced Senate Bill 755 (SB 755), a groundbreaking analysis from Governance & Accountability Institute (G&A) and supporters Ceres, Carbon Accountable, and Persefoni, reveals that most of California's largest state suppliers do not yet disclose key climate-related information. The findings have implications for the State of California's supply chain as it pursues a goal of carbon neutrality by 2045. The report – 'California Supply Chain: Current Practices & Trends in Climate Disclosure' – is the first industry-wide benchmark assessing how major suppliers to the State —representing billions of dollars in procurement spend—are aligned with its ambitious climate strategy, including regulations such as SB 253 ( Climate Corporate Data Accountability Act), SB 261 ( Climate-Related Financial Risk Act), and the newly introduced, supplier-focused SB 755 ( California Procurement Climate Information Act). SB 755 would require suppliers with over $25 million in state contracts to report their climate-related financial risks and Scope 1-3 GHG emissions, and suppliers with $5 to $25 million in State contracts to report their Scopes 1-2 emissions. While not all the suppliers included in this analysis are in scope for SB 253 and SB 261, most would be required to report under SB 755. The research finds low voluntary reporting rates among current suppliers, indicating a lack of readiness to comply with the proposed regulation and pointing to the potential level of transparency to be gained through mandated reporting. An increase in awareness of its supplier base's climate disclosures would support the ability of California to reduce emissions and address climate risk across its supply chain. 'California is leading the way in climate disclosure policy, but our research shows that its supplier base largely is not yet aligned with climate disclosure expectations' said Louis Coppola, CEO & Co-Founder at G&A Institute. 'With SB 755 on the horizon, we now have a critical baseline to measure progress over time. It's a tool for policymakers, procurement teams, and suppliers themselves as they navigate this rapidly evolving regulatory landscape.' Key FindingsMost of CA's top suppliers don't report climate data. Assurance and target-setting by CA suppliers lags behind expectations. Climate risk assessments remain a blind spot for CA suppliers. These rates suggest state agencies, procurement teams, and policymakers should proactively drive supplier readiness by providing guidance on the specific requirements of each bill and their applicability, education on the complexities of climate reporting, and support for accurately measuring emissions and conducting climate-related risk assessments. Establishing a Baseline for Future ProgressThis new research provides a baseline for measuring progress in the years to come. As California's climate regulations evolve, this analysis can be updated annually to track improvements, identify remaining gaps, and measure the impact of policies like SB 253, SB 261, and SB 755. The report enables: 'This report is an important resource for California policymakers and taxpayers and demonstrates the continued importance of ensuring that companies manage, measure, and disclose their climate-related risks and opportunities.' – Ceres 'Suppliers must do their part to help California achieve its ambitious climate goals. This analysis helps clarify where industry gaps exist and where targeted action is needed.'– Carbon Accountable 'Persefoni is a carbon accounting and management platform that regularly supports customers as they examine their own supply chain risks and supplier specific emissions. Large institutional buyers - governments, universities, healthcare systems, corporations - are increasingly looking to suppliers to help assess and manage climate-related financial risks. This includes whether suppliers measure their own GHGs or consider potential disruptions to their own operations. Everyone is someone's Scope 3, so all companies must be ready to provide emissions data and climate risk analysis. We're only as resilient as our weakest supplier.' – Mike Wallace, Chief Decarbonization Officer, Persefoni What's Next?SB 755 is poised to bring even more suppliers into California's climate disclosure framework. Analysis of the kind presented in this new report will be an essential tool for tracking progress, guiding industry engagement, and ensuring companies are prepared for increasing transparency demands. About the Supporters Ceres Ceres Accelerator for Sustainable Capital Markets is a center within Ceres that aims to improve the practices and policies that govern capital markets by engaging federal and state regulators, financial institutions, investors, and corporate boards to act on climate risk as a systemic financial risk. Carbon Accountable Carbon Accountable advances policies that increase the availability of the robust GHG emission data needed to inform corporate and investor decision making and empower consumers and policymakers. Persefoni Persefoni is a leading climate management and carbon accounting platform that enables businesses to track, manage, and disclose their carbon footprints in alignment with global standards. About G&A Institute, Inc. Founded in 2006, Governance & Accountability Institute, Inc. (G&A) is a sustainability consulting and research firm headquartered in New York City. G&A helps corporate and investor clients recognize, understand, and develop winning strategies for sustainability and ESG issues to address stakeholder and shareholder concerns. G&A's proprietary, comprehensive full-suite process for sustainability reporting is designed to help organizations achieve sustainability leadership in their industry and sector and maximize return on investment for sustainability initiatives. Since 2011, G&A has been building and expanding a comprehensive database of corporate sustainability reporting data based on analysis of thousands of ESG and sustainability reports to help steer strategy for our clients and improve their disclosure and reporting. More information is available on our website at
Associated Press
26-03-2025
- Politics
- Associated Press
Taking Local Action on the Ides of March
The Latin-derived word 'ides' refers to the midpoint of a month. The Ides of March – March 15 – is famous for an act of rebellion on that day in 44 BC when a group of senators assassinated the Roman dictator Julius Caesar. The day marked a turning point in Roman history; for Caesar, of course, it was the ultimate turning point. The Ides of March now signals foreboding – in Shakespeare's words 'Beware the Ides of March' – but a turning point is often what's needed to improve how people are governed. Throughout history, people have taken action on March 15 – from the 1917 abdication of the Russian throne by Tsar Nicholas II, to a global strike by 1.4 million students to protest inaction around climate change in 2019, to an 1848 revolution in Hungary that brought reforms by the Habsburg rulers. This year on the Ides of March, 50,000 members of the Hungarian public revisited that successful uprising to protest the autocratic leadership of Prime Minister Viktor Orbán. What turning points might be upon us in the journey to a sustainable, just world? In the U.S., we are seeing signs that action at the local level could counteract anti-environmental policies by the recently inaugurated federal government. Our top story this week is an analysis from Reuters about the growing importance of such action and the power of sub-national actors to bring about real change. In recent years, state-level leadership has come prominently from California (CA), where certain large businesses are required to publicly disclose their greenhouse gas (GHG) emissions and climate-related risks beginning in 2026. Given the size of California's economy, this legislation will have impacts that are nearly national in scale. Building on this legislative precedent, CA State Senator Catherine Blakespear introduced in February a first-of-its-kind state bill, SB 755, to require the largest state contractors to report their GHG emissions and climate-related financial risks starting in 2027. The increase in transparency is aimed at enabling the state to reduce the emissions within its supply chain, supporting the state's goal of carbon neutrality by 2045. 'At G&A, we know that transparency ultimately drives action. The introduction of SB 755 is an important first step towards spotlighting the climate-related risks present in California's supply chain, and it will encourage suppliers to take ownership of measuring and managing their GHG emissions.' - Annie Roberts, Senior Vice President, Climate Consulting, G&A Institute In other areas of legislation like electric transport and clean air, California is joined by ten other U.S. states in banning the sale of gas-only vehicles by 2035. And Vermont, New York, and California have linked corporate polluters to environmental and health impacts by requiring fossil fuel companies to fund projects that build communities' climate resilience – a state-level version of the U.S. Superfund act of 1980. The authors argue that even without federal action, cities and states could cut U.S. emissions by 54-62%, which is needed to achieve the U.S.' nationally determined contribution (NDC) under the Paris Agreement. This is 'a lot of heavy lifting' for sub-national actors, but according to Nate Hultman, Centre for Global Sustainability at the University of Maryland, it is possible and indeed was what the Biden administration planned for in the absence of national leadership. The Reuters story highlights an alliance of 24 state governments that have committed to continue taking climate action. It also notes an 11-state Regional Greenhouse Gas initiative (RGGI, pronounced 'Reggie'), a cap-and-trade system for the power sector. From a business perspective, a strong case remains for states to enact ambitious climate policies – from operational continuity for businesses in each state facing climate impacts, to controlling climate-related financial risk as a good business model. At G&A, we are ready to support companies in responding to climate and sustainability requirements in the states and local municipalities where they do business, such as California's nation-leading climate disclosure rules. We can also support municipalities in developing or updating climate action plans and reaching their targets. Find us here. This is just the introduction of G&A's Sustainability Highlights newsletter this week. Click here to view the full issue.
