5 States Enhance Greenhouse Gas Emissions Reporting

While the federal government may be discontinuing its requirements for reporting on climate risks, these states are filling the gap.

Five states generating nearly one-third of U.S. economic output are now implementing laws requiring detailed reporting of greenhouse gas emissions. This marks a significant step forward for enhanced corporate transparency and sustainability.

The five states are California, New York, Illinois, New Jersey, and Colorado, collectively representing $6.6 trillion in Gross Domestic Product (GDP).

The timetable for these implementations are the following:

California: Mandates are to take effect January 2026.

New York: Requires final regulations by December 31, 2026, with Scope 1 & 2 reporting in 2027 and Scope 3 by January 1, 2028.

Illinois: Calls for companies doing business in the state to report Scope 1 and 2 emissions in 2027 and Scope 3 in 2028.

New Jersey: Companies with over one billion dollars in revenue are to report Scope 1 and 2 emissions within three years of enactment, and Scope 3 within four years.

Colorado: Proposes Scope 1 and 2 reporting by January 1, 2028, and Scope 3 by January 1, 2029.

So we are all clear, Scope 1, 2, and 3 refer to the following:

·?????? Scope 1 focuses on direct emissions from a company or its owned or controlled sources.

·?????? Scope 2 references indirect emissions from, for example, the electricity, steam, heating, and cooling generated by an outside vendor.

·?????? Scope 3, also known as value chain emissions, includes emissions that occur throughout a company's value chain, for example, emissions released by a company's suppliers.

"This coordinated push represents a significant advancement in corporate environmental transparency and sustainability requirements," report Brad Molotsky and Duane Morris, attorneys active in helping organizations execute their sustainability programs.

"They also ensure that large corporations as well as small- to medium-sized enterprises will be accountable for their environmental impacts."

Steve Ashkin of The Ashkin Group, co-chair of ISSA's Sustainability Committee, and the leading voice for sustainability in the professional cleaning industry adds, “this wave of disclosure requirements is a pivotal moment for businesses of all sizes including those in the professional cleaning industry.

ISSA* members, whether directly reporting or supplying to larger companies, must now begin collecting their environmental data to ensure compliance. This will also help them leverage their sustainability initiatives as a strategic advantage."

However, the most important takeaway from these state initiatives, according to Ashkin, is that "while the federal government may be discontinuing its requirements for transparency and [the] standardization of reporting on climate risks, states are filling the gap. They are establishing their own mandatory reporting requirements, which will likely spread to other states around the country."

?

*ISSA is the leading trade association for the professional cleaning industry.

??

?

###

Headshot/Images

?

About the Ashkin Group and Steve Ashkin

Stephen Ashkin is recognized as the "Father of Green Cleaning" and a leading voice for sustainability within the professional cleaning industry. He founded The Ashkin Group more than 25 years ago. Today, it is a globally recognized consulting firm dedicated to promoting environmentally friendly cleaning practices and sustainability.