Sen. Blakespear Introduces Bill to Require State Contractors to Disclose Carbon Emissions

SACRAMENTO – Sen. Catherine Blakespear, D-Encinitas, has introduced legislation to help California take the next important step in carbon emission disclosures by requiring the largest state contractors to report their greenhouse gas emissions annually.

The state has more than $60 billion a year in procurements, and knowing how its supply chain is affecting climate change is crucial in efforts to limit emissions and meet its goal of carbon neutrality by 2045. SB 755 builds on 2023 legislation by Sens. Scott Wiener and Henry Stern that require large companies next year to begin reporting their emissions and their climate-related financial risk (SB 253 and SB 261, respectively.)  

Provisions of SB 755 apply to companies with $5 million or more in state contracts, which is presently about 500 companies, and would take effect in 2027. If the legislation is passed, California would be the first state in the nation to require the reporting for state contractors.

“California is the fifth-largest economy in the world, and we can’t tackle climate change without a clear picture of our own supply chain's impact on the environment,” Sen. Blakespear said. “This bill is a common sense approach to climate transparency so that we can do better by our planet.”

SB 755 follows the guidelines established by SB 253. It created three categories of reporting: Scope 1 for direct emissions from a company’s facilities, Scope 2 for emissions generated as a result of the company’s electricity needs and Scope 3 for all other indirect emissions. SB 261 added the requirement for companies to report their climate-related financial risk.

SB 755, which is co-authored by Sens. Wiener and Stern, mandates the same reporting for large state contractors.

The bill would require:

• Contractors with more than $25 million in state contract obligations to make annual disclosures of their Scope 1, Scope 2 and Scope 3 emissions and their climate-related financial risk.  
• Contractors with between $5 million and $25 million in state contract obligations to make annual disclosures of their Scope 1 and Scope 2 emissions.  

The legislation is sponsored by Carbon Accountable.

"This groundbreaking legislation will shine a light on the environmental impact of California's massive procurement spending," stated Catherine Atkin, Director of Carbon Accountable. "The California Contractor Climate Transparency Act fills a critical gap in our climate strategy by addressing the emissions and risks associated with state contracts. This legislation will not only improve transparency but also incentivize contractors to adopt more sustainable practices, creating a ripple effect throughout our economy.”

The bill is also supported by Ceres Accelerator.

“When making purchasing decisions, the State of California should be protecting taxpayers and maintaining resilient supply chains by managing the financial risks posed by climate change,” said Steven Rothstein, Managing Director of Ceres Accelerator. “Ceres supports Senator Blakespear’s legislation, which will ensure that California’s largest suppliers are transparent about their exposure to, and management of, climate-related risks. This bill is interoperable with California’s landmark corporate climate disclosure laws, SB 253 and SB 261, and will complement those measures.”

Sen. Blakespear represents Senate District 38. Her constituents live in northern San Diego County and southern Orange County. To learn more about the district and Sen. Blakespear, visit her Senate website.