April 2, 2025
New Analysis of California’s Top Suppliers Points to Impact of Proposed Climate Reporting Mandates
Are California’s Top Suppliers Ready for New Climate Disclosure Mandates?
As California considers expanding its climate disclosure requirements through Senate Bill 755 (SB 755), new research shows that most of the state’s largest suppliers are not yet reporting key climate-related information. The findings highlight the potential impact of the proposed law on California’s supply chain and its path toward carbon neutrality by 2045.
Key Findings
Low disclosure rates — Most of California’s top suppliers do not currently disclose climate-related financial risks or greenhouse gas (GHG) emissions.
SB 755 expands scope — The proposed law would require suppliers with contracts over $25M to disclose climate risks and Scope 1–3 emissions, and suppliers with $5–25M contracts to disclose Scope 1–2 emissions.
Supply chain impact — Enhanced supplier disclosure would strengthen California’s ability to meet climate goals and reduce risks across billions of dollars in procurement spending.
Summary
The report California Supply Chain: Current Practices & Trends in Climate Disclosure—produced by G&A Institute in collaboration with Ceres, Carbon Accountable, and Persefoni—is the first industry-wide benchmark of climate disclosure practices among major state suppliers. The analysis found that while many suppliers may fall outside the scope of existing legislation (SB 253 and SB 261), most would be covered under the proposed SB 755. The research highlights a lack of readiness across the supplier base, with voluntary disclosure rates remaining low. This gap underscores the significance of SB 755 in bringing greater transparency and accountability to California’s supply chain, ultimately supporting the state’s broader carbon neutrality objectives.
What You’ll Learn
This Resource Paper explains how SB 755 would reshape climate disclosure requirements for California’s supplier network and what it means for companies contracting with the state. You’ll learn which suppliers are most affected, how the new rules compare with SB 253 and SB 261, and why disclosure readiness remains low. The paper also explores the implications for California’s carbon neutrality strategy, offering insights into how mandated reporting could drive systemic emissions reductions and risk management across supply chains.
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