New Analysis of California’s Top Suppliers Points to Impact of Proposed Climate Reporting Mandates

As California looks to expand corporate climate disclosure requirements with the newly introduced Senate Bill 755 (SB 755), a groundbreaking analysis from Governance & Accountability (G&A) Institute 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.