California recently passed new legislation that will require all U.S. entities that conduct business in California and have an annual revenue greater than $1 billion to report on their GHG emissions annually, those with over $500 million will have to report biennially. But what does this mean for you?
Starting in 2026, your business will be required to disclose all Scope 1 & 2 GHG emissions (emissions generated directly within your organization’s facilities and by your utility for energy your business consumed) and by 2027 all reporting will include Scope 3 emissions (generated by supply chain and use of sold products and services) as well.
As of the time of this writing, the timeline dictates that regulations will be implemented by The California Air Resources Board by January 1, 2025. While there is a possibility that amendments will be passed in 2024, extending the reporting deadlines, it’s still important to start preparing your data now.
How to start, smart:
Based on our Decarbonization Framework, here are our guiding principles to help you get ready to report on your company’s emissions:
1. Relentlessly cut energy waste
a. By cutting energy waste, you immediately reduce emissions and put money back in your pocket. With systematic persistence and building a culture of continual improvement, you can make efficiency last longer than solar panels.
2. Set people up for success
a. Allocate staffing and train energy teams across the organization, then assign achievable targets and hold people accountable for the results. It’s important to communicate and engage all levels of staff and keep them engaged and invested in the changes you will need to make.
3. Dedicate funding, invest wisely
a. Set expectations that decarbonization projects will be completed across the company and dedicate funds to do so effectively. There are incentives available through your utility to help ease the cost of decarbonization. These incentives can help you cover the cost of identifying projects, training, equipment, and other rebates. Let us help connect you with your utility program!
4. Don’t throw away your shot to electrify
a. Look into cutting energy waste across thermal systems and get ready to electrify when the time is right. Research technologies, find vendors, develop expertise, and make a plan.
5. Buy just enough clean energy
a. Clean elecricity generation is critical to eliminating in-plant emissions but can be costly. By implementing energy efficient practices, you can make progress today while keeping an eye on the horizon for the next cost-effective solutions.
The time to start is now. Whether you have a handle on your data or you need a little help, we all want to work smart. It’s not like we have endless time and money to throw at this. If you need extra support to get your numbers where they need to be, Cascade Energy is happy to help. Contact one of our decarbonization experts today. We are wired to cut waste, set your people up for success, and justify the investments you’ll need to make to achieve your goal.
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