California’s greenhouse gas reporting requirements are now in effect. Organizations conducting business in the state with more than $1 billion in annual revenue must publicly report their Scope 1 and Scope 2 greenhouse gas emissions under California Senate Bill 253 (SB 253). As the first reporting deadline approaches, accurate and transparent emissions reporting is increasingly critical.

In a recent webinar, IMPLAN experts Maria Lucas, Senior Product Manager of Economics, and Bjorn Markeson, Ph.D., Academic Divisional Director, demonstrated how organizations can utilize IMPLAN’s Annual Greenhouse Gas Emissions Guide to streamline emissions reporting, enhance transparency, and prepare for evolving regulatory requirements.

Understanding SB 253 and What It Means for Your Organization

California’s Climate Corporate Data Accountability Act (SB 253) applies to U.S.-based corporations, partnerships, and LLCs with more than $1 billion in annual revenue that conduct business in California. Covered organizations are required to publicly disclose their annual Scope 1 and Scope 2 greenhouse gas emissions, regardless of where those emissions occur within the United States. The first reporting deadline was scheduled for August 10, and organizations that fail to comply may face penalties of up to $500,000, making preparation a business priority.

Although California is at the forefront, similar reporting requirements are emerging globally. Canada, the European Union, the United Kingdom, China, and additional U.S. states are moving toward broader greenhouse gas disclosure mandates. Organizations that establish a repeatable reporting process now will be better positioned as regulations expand.

From Economic Analysis to Emissions Reporting

Many organizations currently use IMPLAN to assess the economic impacts of their operations. The Annual Greenhouse Gas Emissions Guide extends this workflow, enabling users to estimate and report greenhouse gas emissions using established IMPLAN data and methodologies.

The process begins with operational information such as facility output and location. Using IMPLAN’s Multi-Regional Input-Output (MRIO) framework, the Guide estimates Scope 1 and Scope 2 emissions across all operational locations while accounting for regional production relationships and energy use.

Users can analyze operations at the state, county, or congressional district level, upload multiple facilities using an Excel template, and generate reports that provide both total corporate emissions and the detailed location-level transparency required for compliance.

Start with Good Data. Improve It When You Have More

A key strength of the Annual Greenhouse Gas Emissions Guide is its flexibility.

Organizations may start with basic operational information, enabling IMPLAN to estimate emissions using industry averages. As more detailed, company-specific data becomes available, users can refine their analysis to achieve greater accuracy.

For example, users can:

• Modify Scope 1 emissions using measured carbon intensity data.
• Adjust electricity, steam, heating, and cooling expenses.
• Account for renewable energy certificates.
• Reflect facility-specific energy consumption rather than relying solely on industry averages.

   

These refinements enhance the accuracy of reported emissions while maintaining a transparent methodology that documents where user-provided values replace IMPLAN’s default estimates. The final report clearly differentiates between IMPLAN-generated estimates and organization-specific inputs, supporting audit readiness and reporting transparency.

Reporting Built for Transparency

SB 253 requires more than reporting a total emissions figure. Organizations must also provide sufficient transparency regarding the methodologies used to calculate those emissions.

The Annual Greenhouse Gas Emissions Guide generates reports that include:

• Total Scope 1 and Scope 2 emissions
• Location-specific emissions summaries
• Documentation of user modifications
• Methodology notes explaining IMPLAN-generated estimates
• Supporting details that improve transparency for regulatory review
  

   

IMPLAN consolidates the necessary reporting information into a single workflow, eliminating the need for users to manually compile documentation from multiple sources.

Looking Ahead: Scope 3 Reporting

The current Greenhouse Gas Emissions Guide supports Scope 1 and Scope 2 reporting; however, IMPLAN’s development roadmap extends beyond current requirements.

As discussed during the webinar, development is already underway to expand the Guide to support Scope 3 emissions. Planned enhancements include reporting for:

• Upstream and downstream supply chain emissions
• Employee commuting
• Business travel
• Capital-related emissions
• Product end-of-life emissions
  

   

With the recent introduction of Forward Linkages, IMPLAN already possesses foundational capabilities to support downstream supply chain analysis as Scope 3 functionality is integrated. These enhancements are expected to be introduced during the second half of the year.

Even More Regional Precision on the Horizon

Two enhancements are on the roadmap to make regional reporting even more precise.

First, IMPLAN is evaluating increased regional carbon intensity. Currently, IMPLAN incorporates advanced regional trade flows when estimating electricity consumption and emissions. Planned enhancements will provide greater geographic granularity by leveraging regional emissions datasets to improve carbon intensity estimates.

Second, IMPLAN is expanding geographic coverage beyond the United States. Today, organizations can analyze operations from the zip code level up to the national level, suitable for both local facility reporting and enterprise-wide disclosure. Global coverage is coming soon, positioning organizations to meet international mandates as reporting requirements expand across Canada, the EU, the UK, and beyond.

While still in development, these capabilities reflect IMPLAN's continued commitment to providing organizations with increasingly detailed and defensible environmental reporting.

Preparing for What’s Next

Greenhouse gas reporting requirements are evolving rapidly, necessitating tools that can adapt to changing regulatory landscapes.

Whether preparing for an initial SB 253 submission or planning for future Scope 3 requirements, IMPLAN’s Annual Greenhouse Gas Emissions Guide offers a practical and transparent workflow that integrates economic analysis with greenhouse gas reporting in a single platform.

As regulations expand across states and internationally, organizations that implement a scalable reporting process now will be better positioned for future requirements.

Ready to Simplify Your Emissions Reporting?

Discover how the IMPLAN Annual Greenhouse Gas Emissions Guide can assist organizations in preparing for SB 253 compliance and establishing a foundation for future reporting requirements.

Explore the Guide, schedule a demonstration, or contact the IMPLAN team for additional information.