California Extends Emissions Reporting Deadline
California’s Air Resources Board (CARB) has announced a change to the deadline for businesses to comply with the state’s emissions disclosure law known as Senate Bill 253. This new deadline provides companies an additional three months to report their scope 1 and scope 2 greenhouse gas emissions, moving the deadline from August 10 to November 10.
This extension not only offers extra time for compliance but also comes with plans for CARB to propose “limited changes” to the regulation. Earlier this year, CARB approved these regulations, part of a push to require certain companies to disclose climate-related financial information.
As part of these regulations, companies with over $1 billion in revenue that operate in California will initially report only their direct emissions (scope 1) and emissions from electricity they purchase (scope 2). However, starting in 2027, they will also need to report scope 3 emissions, which include other indirect emissions.
While CARB plans to tighten rules to clarify reporting requirements, the agency reassured businesses that no enforcement actions will be taken during the first year of reporting. This approach aims to foster good faith efforts among companies to comply with the new laws.
The regulations are currently under review, awaiting approval from California’s Office of Administrative Law. There’s a possibility that amendments could delay this approval. Meanwhile, over 170 companies have voluntarily submitted reports on climate-related financial risks, according to recent data from CARB.
Overall, this extension aims to ensure clarity and give businesses ample time to meet their reporting obligations while the regulations are fine-tuned.