July 2025 US sustainability updates (Federal vs State-Level Momentum)
As global pressure for climate accountability grows, many U.S. states are moving forward with comprehensive carbon reporting requirements—filling the gap left by delayed or uncertain federal mandates.
A carbon footprint represents the total greenhouse gas (GHG) emissions caused directly and indirectly by an organization. These emissions are typically categorized into three scopes:
Scope 1: Direct emissions from owned or controlled sources (e.g. fuel combustion on-site).
Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling.
Scope 3: All other indirect emissions across the value chain, including supply chain, business travel, and product use—often the largest and most complex to track.
California Leads, Other States Follow
California has taken a bold lead with two landmark laws—SB 253 and SB 261—which require large companies doing business in the state to disclose their full emissions, including Scope 3, and assess their exposure to climate-related financial risks.
Inspired by California’s leadership, states such as New York, New Jersey, Colorado, Illinois, and Washington are advancing similar climate disclosure legislation. While each bill varies slightly in structure, the trend is clear: corporate climate transparency is becoming a compliance obligation, not a voluntary effort.
Federal Landscape: The PROVE IT Act
At the federal level, the PROVE IT Act (S.1863)—a bipartisan initiative—seeks to boost transparency in carbon emissions at the product level. The Act would empower the U.S. Department of Energy to develop and maintain reliable data on the carbon intensity of goods produced in the U.S. and abroad. This sets the foundation for future carbon border adjustments and fairer environmental trade policies, particularly in industries like steel, cement, and aluminum.
State-Level Climate Reporting Legislation
| State | Bill ID & Title | Covered Entities | Emissions Scopes Covered | Assurance Requirements | Phase-In Dates | Fines / Penalties |
|---|---|---|---|---|---|---|
| California | SB 253 – Climate Corporate Data Accountability Act SB 261 – Climate-Related Financial Risk Disclosure | SB 253: ≥ $1B revenue SB 261: ≥ $500M (public/private, in-CA business) | SB 253: Scopes 1, 2, and 3 SB 261: Climate risk-related | Independent third-party assurance | SB 253: 2026 (Scopes 1 & 2), 2027 (Scope 3) SB 261: Reports due 2026 | SB 253: up to $500K/year SB 261: up to $50K/year |
| New York | Pending – emissions reporting bill modeled on CA SB 253 | Large companies operating in New York | Likely Scopes 1–3 | Proposed independent assurance | TBD | TBD |
| New Jersey | Pending – modeled on CA SB 253 | Large in-state businesses | Likely Scopes 1–3 | Proposed assurance | TBD | TBD |
| Colorado | Pending – emissions disclosure legislation | Large companies doing business in CO | Likely Scopes 1–3 | Proposed assurance | TBD | TBD |
| Illinois | Pending – based on CA SB 253 | Large businesses | Likely Scopes 1–3 | Proposed assurance | TBD | TBD |
| Louisiana | Natural Gas Redefinition Law (2024) | Applies broadly to state-recognized energy programs | None – natural gas labeled as “green” | None | Effective immediately (2024) | Controversial – no penalties defined |
| Washington, Maryland, Virginia (Others) | Various (e.g., Climate Commitment Act, Clean Economy Act) | Utilities and large emitters | Primarily Scopes 1 & 2 via energy policies | Varies | Ongoing | State-specific enforcement mechanisms |
What This Means for Your Business ?
Even in the absence of a sweeping federal mandate, a growing number of states are requiring robust GHG reporting, particularly including Scope 3, which accounts for most corporate emissions. As Carlin notes, these state laws “cast a strong net” with potential national impact because few major firms operate in only one jurisdiction.
How TSN Can Help
With TSN’s platform, your company can:
- Consultancy and guidance in the adoption and compliance process
Streamline data collection and reporting across Scopes 1, 2, and 3
Ensure compliance with California’s SB 253/SB 261 and emerging state bills
Build assurance-capable reporting processes, meeting verification standards
Adapt to future federal transparency measures, such as PROVE IT
Ready to Lead in Compliance & Climate Action?
Whether you’re preparing for California’s new rules, anticipating New York-style bills, or addressing federal transparency efforts, TSN simplifies the path.
Schedule a demo today to discover how our platform enables end-to-end GHG management — from data capture to verified reports.
