Financial News
New Analysis of California’s Top Suppliers Points to Impact of Proposed Climate Reporting Mandates
NEW YORK, April 02, 2025 (GLOBE NEWSWIRE) -- 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.
“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 Findings
Most of CA’s top suppliers don’t report climate data.
- 25% disclose Scopes 1 & 2 emissions
- 18% report Scope 3 emissions, the largest portion of most companies’ carbon footprints
Assurance and target-setting by CA suppliers lags behind expectations.
- 10% obtained third-party assurance for their reported GHG emissions.
- 11% have set science-based emissions reduction targets.
Climate risk assessments remain a blind spot for CA suppliers.
- 17% conducted a climate-related risk assessment aligned with the Task Force on Climate-related Financial Disclosures (TCFD).
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 Progress
This 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:
- Procurement teams to assess supplier progress and refine engagement strategies.
- Suppliers to benchmark their progress against their industry peers and make strategic and targeted improvements.
- Policymakers to track the effectiveness of climate laws and adjust guidance as needed.
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.
Click here to download the report.
About the Supporters
CONTACT
Louis D. Coppola, CEO & Co-Founder
Governance & Accountability Institute, Inc.
646.430.8230 ext 14
lcoppola@ga-institute.com
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