On 10th October, the California Air Resources Board (CARB) published the draft scope 1 and 2 reporting template for the Climate Corporate Data Accountability Act (SB 253) - a major step toward turning California’s landmark climate disclosure law into reality.

For companies doing business in California with annual revenues above $1 billion, this draft template offers the clearest picture yet of what upcoming greenhouse gas (GHG) reporting will look like - from what data needs to be disclosed to how CARB expects organizations to structure it.

At ecoPRISM, we see this as a pivotal moment: not just for compliance, but for climate maturity. This is when “we should start preparing” becomes “we need a plan.”

What is SB 253 and what it requires

Under SB 253, large companies must publicly disclose their Scope 1, 2, and 3 GHG emissions each year.

  • Scope 1 and 2 emissions reporting begin in 2026, using 2025 data.
  • Scope 3 (value chain emissions) follows in 2027.
  • The disclosures must be third-party assured and submitted to a digital reporting platform that is designated by CARB.

This may sound daunting, but the intent is simple and clear: to ensure increased transparency, comparability, and accountability to corporate climate data, and to help stakeholders (investors, policymakers, and the public) see what companies are doing and how are they performing.

What Does the Draft Template Cover

The draft template gives organizations a first look at what they will need to report. These are the parameters the template covers:

  • Company Information

    Basic identifying details like Legal name, EIN, NAICS code, headquarter address, and point of contact.

    ecoPRISM insight: Ensure this information matches official filings.

  • Reporting Boundary & Period

    How the company defines the reporting boundary (equity share, operational control, or financial control) and what timeframe does the data cover.

    ecoPRISM tip: Clear defining your reporting boundary ensures consistent year-on-year reporting and assurance process.

  • Scope 1 Emissions Data

    A breakdown of scope 1 emissions by source type (stationary, mobile, process, fugitive, agricultural) and gas (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆), as well as total emissions in metric tons of CO₂e.

  • Scope 2 Emissions Data

    Companies must report activity data by energy type (electricity, steam, heating, cooling), and report location and market-based values in metric tons of CO2e.

    ecoPRISM insight: The dual accounting (location and market-based) approach aligns with the widely followed and used GHG protocol.

  • Methodology & Emission Factors

    Emission factor sources (EPA, IPCC, DEFRA, etc.), GWP source and version, assumptions, estimation methods, and explanations of any omissions or data limitations.

    ecoPRISM tip: Keep a clear audit trail of factor sources and data conversions.

  • Assurance Details

    Whether emissions have been verified by a third party, including verifier name and type of assurance obtained.

  • Data Quality & Limitations

    A narrative summary of data quality, estimation methods, uncertainties, and plans for improvement.

  • Optional Sections

    Additional disclosures such as base year emissions, renewable energy contracts, or reduction initiatives.

The draft template is open to public feedback related to the structure, data fields and usability, until October 27.

What This Means for Companies

This draft doesn’t just give an overview of compliance requirements - it also highlights what climate reporting maturity would look like going forward.

For most organizations, this means:

  • Centralizing emissions data that might currently live across multiple systems or business units
  • Aligning methodologies with the GHG Protocol and upcoming CARB standards
  • Preparing for third-party assurance - which means having traceable, defensible data
  • Building internal governance around who owns, reviews, and approves emissions numbers
  • Preparing for future Scope 3 complexity, since there is limited visibility into supplier emissions

It’s not just about avoiding penalties, early and high-quality disclosure signals to investors, customers, and employees that your organization takes climate accountability seriously.

Common Challenges We’re Hearing

In our discussions with various sustainability and finance leaders, we have observed a few recurring challenges:

  • "Our emissions data isn’t centralized and is in silos."
  • "We’re unsure if we qualify as ‘doing business in California."
  • "Scope 3 feels unmanageable - where do we even start?"
  • "We want to comply but also use this data to drive real decarbonization."

If these sound familiar, you’re not alone and you’re not behind. Now is the time to build readiness to meet the first compliance cycle.

How ecoPRISM Helps You Navigate SB 253

At ecoPRISM, we aim to make climate data clear, credible, and decision ready. We help organizations turn regulatory complexity into climate confidence by combining deep sustainability expertise with robust data and technology solutions.

Here’s how we support your SB 253 journey:

  • SB 253 Readiness Assessments: We do the assessment to identify whether your business falls under SB 253 and what are your specific disclosure requirements. We look at your entity structure, revenue streams, and operational footprint against CARB’s applicability criteria.
  • Data Collection & GHG Inventory Building: We streamline how your team collects and validates emissions data - integrating energy, fuel, and process data across systems. Our ESG platform automates data aggregation and calculation of scope 1, 2 and 3 emissions following the GHG Protocol, ensuring data is CARB-aligned.
  • Boundary & Methodology Definition: Our sustainability experts guide you in selection of the right boundary approach (equity share, operational control, etc.). Our ESG platform has a large set of global databases to ensure correct emission factors are selected for your sites and locations.
  • Assurance Readiness: Whether you’re working with an external verifier or internal audit team, we help you prepare the documentation, audit trails, and emission factor sources you’ll need for smooth third-party assurance.
  • Scenario Planning & Decarbonization Insights: Once your data foundation is solid, the ESG platform provides AI-drive analysis of emission hotspots, model different strategic scenarios, and monitor progress on your targets - turning compliance into strategy.
  • Continuous Regulatory Monitoring: SB 253 (and its companion, SB 261) will evolve over the next few years. Our sustainability experts track regulatory updates and update your reporting framework automatically, keeping you compliant, consistent, and confident.

Ready to Get Started?

If you’d like to understand what the CARB Draft SB 253 Reporting Template means for your organization or explore how ecoPRISM can help you prepare for the first reporting cycle, we’d love to connect.

With ecoPRISM, ahead of SB 253 climate reporting requirements and California’s evolving climate disclosure laws — simplifying GHG reporting compliance, managing Scope 1, 2, and 3 emissions reporting, and meeting California Air Resources Board reporting standards through advanced ESG software for climate compliance.

Reach out to the ecoPRISM Climate Team for a readiness consultation or demo of our GHG reporting toolkit.