Carbon Footprint Assessment & Decarbonization Planning

The Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) introduce new mandates, similar to the federal rules proposed by the US Securities and Exchange Commission (SEC). These mandates apply to virtually all major companies operating within California. SB 253, the Climate Corporate Data Accountability Act, mandates that US companies with annual revenues exceeding $1 billion and conducting business in California disclose their Scope 1 and 2 greenhouse gas (GHG) emissions data starting in 2026, and their Scope 3 GHG emissions data by 2027, with annual reporting thereafter.

Due to the Scope 3 reporting requirement, these mandates will also affect smaller companies that provide goods and services to the large companies subject to SB 253/261. As a result, many small and medium-size companies will have to measure and share their carbon footprint with their clients/customers. In addition, they may have to take action to reduce their greenhouse gas emissions and their carbon footprint.

At Dena Energy, we specialize in empowering businesses to measure, manage, and reduce their carbon footprint with our comprehensive assessment and decarbonization solutions.

What is Carbon Footprint Assessment and Why is it Important?

Carbon Footprint Assessment is a comprehensive assessment that measures the total greenhouse gas emissions produced by an organization. It provides a detailed breakdown of emissions from various sources, such as energy consumption, transportation, waste management, and more. By quantifying your carbon footprint, you can identify key emission sources, set reduction targets, and track progress towards your sustainability goals.

What are GHG Emission Scopes?

To help delineate direct and indirect emission sources, improve transparency, a three “scopes” (scope 1, scope 2, and scope 3) are defined for GHG accounting and reporting purposes:

• Scope 1: Direct GHG Emissions — Direct GHG emissions that occur from sources owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.

• Scope 2: Electricity Indirect GHG Emissions — GHG emissions from the generation of purchased electricity (that physically occur at the generation facility) consumed by the company.

• Scope 3: Other Indirect GHG Emissions — Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Examples include extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services.