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California's Corporate Climate Accountability Package | One Click LCA

Written by Aileen Carroll | Nov 17 2025

What are California’s new climate disclosure requirements?

California’s Corporate Climate Accountability Package requires large companies doing business in California to disclose both their greenhouse gas (GHG) emissions and climate-related financial risks. While compliance falls directly on large corporations exceeding $500 million annual revenue, the implications extend across entire supply chains.

Manufacturers supplying these companies will need to provide reliable, verifiable product-level carbon data, including environmental product declarations (EPDs) or product carbon footprints (PCFs), to remain eligible for contracts. Without credible carbon data, many suppliers risk exclusion from procurement, tenders, and preferred vendor lists.

The laws in brief

Senate Bill 253: The Climate Corporate Data Accountability Act

  • Applies to companies with over $1 billion in annual revenue that do business in California.
  • Requires public disclosure of Scope 1, 2, and 3 GHG emissions.
  • Mandates third-party assurance for reported emissions.
  • Reporting begins 2026 for Scope 1 and 2, and 2027 for Scope 3.

Senate Bill 261: The Climate-Related Financial Risk Act

  • Applies to companies with over $500 million in annual revenue that do business in California.
  • Requires disclosure of climate-related financial risks and mitigation strategies, aligned with the Task Force on Climate-Related Financial Disclosures (TCFD).
  • First reports are due January 1, 2026, and every two years thereafter.

Together, these laws form the most comprehensive climate disclosure framework in the United States. As they apply to any companies doing business in California, regardless of where those companies are based, these laws will affect many organizations outside of California state borders, and will reshape how data flows between corporations, suppliers, and regulators. 

How does the California Corporate Climate Accountability Package affect manufacturers? 

Although reporting responsibility rests with large corporations, the data burden will cascade down to their suppliers. To report full Scope 3 emissions, companies must quantify the embodied carbon of all purchased goods and services. This means that every material, component, and finished product entering a supply chain must carry reliable emissions data.

Manufacturers who cannot provide verified EPDs or PCFs will face growing commercial risk:

  • Procurement exclusion: Buyers will prioritize suppliers with verifiable carbon data.
  • Bid disadvantage: Tenders increasingly specify EPD requirements for eligibility.
  • Lost market access: Non-compliance can disqualify manufacturers from California-based projects or global firms subject to similar regulations.

What is embodied carbon?

Embodied carbon refers to all GHG emissions generated during the extraction, production, and transport of materials used to make a product. For industrial and construction product manufacturers, these emissions form the bulk of Scope 3 impacts and are now essential for compliance reporting.

To comply with customer requests under SB 253, manufacturers will likely be required to provide this data in a structured, verifiable format, most often through an EPD or PCF. EPDs quantify environmental performance using a life-cycle assessment (LCA), while PCFs focus on the carbon footprint specifically. Both are recognized globally and increasingly required in public and private tenders.

Accurate embodied carbon data not only enables compliance but also strengthens a manufacturer’s competitive position. Many customers, regulators, and investors are moving toward carbon transparency as a basis for procurement decisions.

How does One Click LCA support compliance and competitiveness?

Streamlining product carbon data generation

One Click LCA’s EPD Generator automates the creation of ISO and EN compliant environmental product declarations. It integrates life-cycle data, emissions factors, and supply chain models to produce verified results ready for third-party review.

For manufacturers navigating California’s regulations, this means:

  • Rapid compliance: Automated data workflows let you produce EPDs 10X faster.
  • Verified credibility: Outputs align with recognized standards, enabling acceptance under California and EU frameworks alike.
  • Portfolio scalability: The same tool can generate hundreds of EPDs across a product range, supporting consistent data disclosure.

Enabling Scope 3 data exchange

Large corporations can integrate supplier EPD data directly into their Scope 3 accounting systems, simplifying compliance across value chains.

Manufacturers that use One Click LCA position themselves as compliant, preferred partners for the world’s largest buyers, turning climate data into a business advantage.

Ensuring global consistency

While SB 253 and SB 261 are state laws, their structure mirrors international standards such as the European Corporate Sustainability Reporting Directive (CSRD), Ecodesign for Sustainable Products Regulation (ESPR), and Carbon Border Adjustment Mechanism (CBAM). One Click LCA already aligns with over 140 standards globally, ensuring manufacturers can use a single platform to meet multiple regulatory and market needs.

The business case for carbon data

Procurement pressure: Major corporations are already requesting supplier EPDs ahead of regulatory deadlines. Early adopters secure long-term contracts.

Market access: Many construction and infrastructure tenders now require product-level carbon data. Non-compliance will limit participation.

Cost efficiency: Automating EPD and LCA generation reduces consultancy costs and ensures control over data updates.

Brand credibility: Transparent carbon data builds investor and customer confidence.

Future-proofing: In addition to SB 253, Digital Product Passports (DPPs) and EU border mechanisms will also start requiring carbon data. Manufacturers who create EPDs to comply with SB 253 will be ready to do business in Europe and other regions, as well.

Compliance is the baseline, competitiveness is the outcome

California’s climate disclosure laws are redefining how businesses account for emissions. For manufacturers, this shift is not only regulatory — it’s strategic. The ability to quantify and disclose product-level carbon data will determine market access in the coming years.

One Click LCA provides the tools, data, and verification capabilities to help manufacturers comply with California’s climate disclosure requirements and use compliance as a foundation for business growth.

Frequently asked questions about SB 253 & SB 261 for manufacturers

1. As a manufacturer, am I required to report carbon emissions under California SB 253 or SB 261?

You may not need to report directly to the state, but large customers affected by these laws must report their full value chain emissions. That means they will need emissions data from you. One Click LCA helps suppliers like you prepare accurate data for your customers.

2. Will customers request my product carbon data to comply with SB 253 or SB 261 reporting requirements?

Yes, major buyers are likely to request your emissions data to fulfill their Scope 3 reporting requirements. They will expect reliable, product-level carbon information. One Click LCA makes it simple to calculate and share standardized emissions data.

3. When do manufacturers need to start providing carbon emissions data under SB 253 and SB 261?

Reporting starts in 2026, but data collection will begin earlier. Many buyers may begin asking for supplier data as early as 2025. One Click LCA helps you build reliable, verifiable datasets before these requests arrive.

4. Do manufacturers or suppliers need third-party verification for emissions data under SB 253 or SB 261?

Suppliers are not required to verify their data, but many customers will expect verified results. One Click LCA supports pre-verified EPDs and transparent LCA reports that are ready for third-party audit.

5. How detailed must my product carbon footprint reporting be to comply with SB 253 and SB 261 requirements?

Buyers will expect detailed, product-specific emissions data rather than general estimates. One Click LCA automates data collection and generates verifiable, product-level footprints aligned with the GHG Protocol and ISO 14044.

6. What happens if a manufacturer’s emissions data is incomplete or inaccurate under SB 253 or SB 261?

If your data is incomplete or inaccurate, you may not qualify for contracts with climate-focused buyers. One Click LCA helps you fill data gaps with verified datasets to ensure accuracy and comparability.

7. How can manufacturers reduce their carbon footprint to meet SB 253 and SB 261 expectations?

Buyers are increasingly choosing low-carbon products. One Click LCA identifies your highest-impact materials and processes to help reduce emissions and boost your competitiveness.