Ending Soon! Save 33% on All Access

Apple, Walmart Will Have to Report Greenhouse Gas Emissions Under Proposed New Law The bill requires companies in California with annual revenues exceeding $1 billion to report greenhouse gas emissions data starting in 2026, with phased rollouts for different emission categories.

By Madeline Garfinkle

Key Takeaways

  • Approximately 5,400 companies, including major corporations like Walmart, Apple, ExxonMobil, and Chevron, would be affected by the legislation.
  • The bill aims to ensure that companies provide a comprehensive account of their emissions, including those generated indirectly or through their supply chains.

Opinions expressed by Entrepreneur contributors are their own.

California legislators have approved a bill that will require some of the biggest U.S.-based companies to disclose annual greenhouse gas emissions.

The Senate Bill 253, or the Climate Corporate Data Accountability Act, passed a 48-20 Assembly vote on Monday and then passed with a 27-8 Senate vote on Tuesday, the Los Angeles Times reported. Now, the bill is awaiting a final decision from California Governor, Gavin Newsom.

If signed into law, the bill will require the California Air Resources Board to establish regulations by 2025 that call on all public and private companies with over $1 billion in annual revenue to disclose emissions in three scopes, beginning with scopes 1 and 2 in 2026, and scope 3 emissions reporting starting in 2027.

The scopes, as outlined in the bill, are defined as:

  • Scope 1 encompasses emissions directly caused by things the company owns or controls, such as burning fuel.
  • Scope 2 is emissions caused indirectly by things like using electricity, heating, or cooling.
  • Scope 3 is emissions from things the company doesn't own or control, such as when they buy products, employees travel for work, or people use the company's products.

Related: An Entrepreneur's Guide to Achieving a Net-Zero Business

Approximately 5,400 companies, including Walmart, Apple, ExxonMobil, and Chevron, would be affected, the LA Times added.

Advocates argue that this transparency is crucial for achieving significant emissions reductions, as well as ensuring that companies' climate pledges are genuine.

"We need the full picture to make the deep emissions cuts that scientists tell us are necessary to avert the worst impacts of climate change," said California senator Scott Wiener, who penned the bill, in a statement. "We need strong transparency to create a level playing field among private and public companies."

However, not everyone is on board. Last month, the California Chamber of Commerce said that the bill "will not lead to direct emissions reductions," but rather impose a "costly reporting requirement," conflicting with the state's climate objectives. The agency added that since the state lacks authority to regulate emissions beyond its borders, the burden would disproportionately affect California-based companies, potentially giving an advantage to out-of-state and foreign firms.

Related: 10 Billionaires Stepping Up to Fight Climate Change

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

TikTok Reportedly Laid Off a 'Large Percentage' of Employees as the App's Fate in the U.S. Remains Unclear

Laid-off TikTok employees were notified Wednesday night through Thursday morning.

Personal Finance

This Investment Bundle Includes a Trading Course and Stock Screener Tool for $150

Approach the stock market with an increased understanding.

Business News

Four Seasons Orlando Responds to Viral TikTok: 'There's Something Here For All Ages'

The video has amassed over 45.4 million views on TikTok.

Growing a Business

5 Strategies to Know As You Scale Your Business

Scaling a service-based company requires a comprehensive approach that goes beyond simply increasing revenue. It requires careful planning, strategic decision-making and a deep understanding of market dynamics.

Growing a Business

The Right Way to Ask Someone for a Million Dollars, According to a Fundraiser Who Does It For a Living

No matter what you're raising money for, Wanda Urbanskia says, the same basic rules apply.