The state of California passed two bills in October 2023 that require Scope 3 emissions disclosures for financial firms doing business in that state. CA emissions reporting requirements are even more extensive than SEC proposals suggested in 2022. These emissions can easily account for more than 95 percent of total emissions for financial and other firms. This huge new reporting requirement opens the door to independent auditing and challenging of the reported results, so affected firms need to take this new rule seriously and to conscientiously conduct required analysis and reporting to avoid challenges to corporate CSR commitments.

Financial institutions outside California should also take notice as trends in California often lead to similar requirements in other states.

Relevant links:

• Read more on reporting requirements.
• Scope 3 Financed Emissions Reporting: Beware - How Good Intentions Can Lead to Bad Outcomes (April 18, 2023)
• Mortgagor & CRE Emissions Calculations: A 3-Page Summary, June 21 2023 that provides important insights on emissions estimation issues.
• Jackson Associates provides consulting support to assist financial institutions in developing strategies to develop and report Scope 3 Financed Emissions for residential and commercial loan customers.

Benefits of MAISY Financed Emissions Accouting Data and Services

ACCURACY Provide the most accurate Scope 3 financed emissions accounting available with MAISY Emissions Accounting Data Products and Support Services. MAISY ZIP-Level Residential and Commercial Utility Customer Energy Use Databases and analysis draw on 25 Years of experience quantifying utility customer electricity, natural gas and fuel oil use and emissions.    read more	TIME & COST SAVINGS With more than 25 years providing clients with the same kind of data and analysis required by Scope 3 emissions reporting, we can provide results more quickly, at significantly lower cost and with results that are more accurate with a more reliable methodology compared to new in-house efforts or any other outside source.   read more	AUDITABLE Financial reporting requires auditable and transparent methodologies available with MAISY Scope 3 data and analysis. Databases are developed with US Energy and Commerce Department Data, utility reported data, and other public sources with statistical analysis procedures developed over decades of applications to a variety of “real-world” applications.   read more	UPDATING AND SUPPORT MAISY Databases are updated on an annual basis or more frequently as new data becomes available. Support includes processing client data and providing energy use and emissions results and audit-quality documentary reports to assisting financial firms in identifying and organizing inputs required for the emissions analysis.   read more
SCOPE 3 FINANCED EMISSIONS DATABASES ZIP-level emissions and financial institution consolidated emissions are based on loan customer data. This section describes this process including a summary of emissions estimation methodology.   read more		NOTES AND WHITEPAPERS demonstrate benefits of using MAISY Scope 3 data and support services to support financed Scope 3 emissions reporting.   read more