“As goes California, so goes the nation” is a popular refrain, and environmental regulations are no exception. As the world’s fifth-largest economy, California’s regulations have a far-reaching impact on businesses not only within the United States, but also across the globe.
In October 2023, California Governor Gavin Newsom cemented California’s status as a climate leader by signing two new climate bills into law. These bills will require broader disclosure than the Securities and Exchange Commission’s (SEC) Climate Disclosure rule.
Thousands of businesses are expected to be affected by California Senate Bills (SB) 253 and 261, which will require them to disclose their carbon footprints and climate financial risks. The bills apply to any public or private company doing business in California that meets certain revenue thresholds, with penalties for non-compliance. Here are four reasons why large companies, especially in the agri-food sector, should take note:
As the regulatory landscape shifts from voluntary to mandatory climate reporting, emissions data will undergo the same scrutiny as financial data. Agri-food companies must be confident in their data and able to demonstrate its accuracy. Measuring and reporting Scope 1, 2, and 3 emissions can be challenging, but utilizing software like Terrascope to automate GHG accounting ensures greater accuracy, traceability, and transparency.
Terrascope is an enterprise-grade, end-to-end decarbonization software platform designed to help corporations reduce emissions across their operations and supply chains. By providing credible, auditable emissions data compliant with the GHG Protocol, Terrascope delivers the carbon-related analytics needed for accurate and timely disclosures.
Terrascope specialises in Scope 3 and land-based emissions, supporting both company and product carbon footprinting, reporting, and decarbonization goals. For the agri-food industry, our focus on Scope 3 emissions includes:
Terrascope also has proprietary capabilities to track data confidence, visualize emission factors in detail, and simulate changes from reduction initiatives.
As California leads the way in climate regulation, it’s imperative for agri-food companies to stay ahead of the curve. Contact us today to learn how Terrascope can support your journey towards effective decarbonization.