The California Air Resources Board (CARB) will be holding a virtual public workshop on California's new Greenhouse Gas and Financial Risk reporting programs on Tuesday, November 18, 2025, at 9:30 AM - 12:30 PM PST.
CARB will be providing updates on rule development for the new programs, which were authorized by state legislation in 2023 and 2024.
In short, certain companies that do business in California will be required to report their Scope 1, 2, and 3 greenhouse gas (GHG) emissions for the prior fiscal year. Additionally, companies will be required to publish biennial climate-related financial risk reports.
The GHG reports apply to companies with total annual revenues in excess of one billion dollars ($1,000,000,000). The financial risk reporting will apply to companies with annual revenues of at least $500 million.
Scope 1 and 2 reports are due on an as yet unspecified date in 2026. The first financial risk reports are due on January 1. 2026. The due date for Scope 3 emissions has not yet been specified.
The definitions of Scope 1, 2, and 3 emissions are:
Stationary Combustion (Scope 1): Emissions from combustion of fuels in stationary sources for generation of electricity, heat, or steam, e.g., boilders, furnaces, turbines.
Mobile Combustion (Scope 1): Emissions from the combustion of fuels in company owned/controleed mobile combustion sources, e.g., trucks, ships, airplanes, and cars.
Process Emissions (Scope 1): Emissions from manufacture or processing of chemicals and materials, e.g., cement, aluminum, and waste processing.
Fugitive Emissions (Scope 1): Emissions from intentional or unintentional releases, e.g., equipment leaks from joints, seals, or packing; methane emissions from coal mines and venting.
Location-based Method (Scope 2): This method reflects the average emissions intensity of grids on which energy consumption occurs (using grid-average emission factor data).
Market-based Method (Scope 2): This method reflects emissions from electricity that companies have purposefully chosen (using emission factor derived from contractual instruments).
Business related emissions from non-company sources (Scope 3): These include all business related emissions that are not Scope 1 or 2. These are emissions from related business organizations that are not directly owned or controlled by the reporting company. They include supply chain, transportation, product usage, business travel, purchased goods, waste generated, and the use of sold products. Sometimes referred to as value chain emissions, they are very difficult to calculate and, perhaps even moreso, to reduce.
Anyone in the public may participate in this virtual workshop by registering at this link: CARB Workshop Registration
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