Inside CARB’s New SB 253 Reporting Template: How to Report Scope 1 & 2 Emissions in 2026

A key component of the California Climate Laws signed into law in 2023 is the requirement for US businesses with more than $1 billion in revenue doing business in California to report their assured Scope 1 and 2 emissions beginning in 2026. This is under the “SB 253” law, and many companies are now seeking to understand this new SB 253 template to comply efficiently.

Despite SB 253 originally defining high-level requirements, additional details of how these laws will be implemented by the California Air Resources Board (CARB) have been less defined, with details being released over the past year. Earlier this summer, for example, CARB clarified that emissions for 2025 will be due by June 30, 2026, but at that time did not explain the specific datapoints that will be required.  

Then on October 10, 2025, CARB shared important insights into what specific data may be required for SB 253 compliance. CARB published the first draft of a practical tool for compliance, a draft Scope 1 and Scope 2 reporting template, and an accompanying memo.

While it is not mandatory to use the template in year 1, CARB views it as a valuable way to streamline reporting, especially for companies making their first report. It also provides an early preview of what California expects from covered entities. 

Public comments on the template are open through October 27, offering businesses a chance to help shape the final design.  

What The SB 253 Template Means for Scope 1 and 2 GHG Emissions Reporters

The core requirements of CARB’s reporting template are based on The Greenhouse Gas Protocol and standard GHG inventory methodology, data sources, and assurance processes in mind.

Good.Lab built its GHG data collection and inventory platform fully in line with the Greenhouse Gas Protocol as well – so although no one has complete visibility yet into the final disclosure requirements, this high level of alignment will enable a simple, streamlined export of customer GHG data into the CARB template for our customers.  

The GHG emissions metrics, such as total Scope 1 and Scope 2 emissions and definition of the organizational boundary approach, are fairly standard elements included in the verification statements that many companies are accustomed to posting publicly.

However, the draft template also includes a range of more detailed or methodological questions that are typical of comprehensive frameworks, such as CDP Climate Change questionnaire. These include a breakdown of emissions by source, an option to breakdown emissions by specific greenhouse gas, and description of the calculation methods used.

To protect proprietary details while still ensuring data accuracy, third-party verification plays an important role. Independent verifiers review and confirm a company’s emissions boundaries, sources, and methodologies. This ensures that public disclosures can be trusted without requiring every technical detail to be published. Under SB 253, all companies must have their Scope 1 and 2 inventories verified and provide evidence of that assurance to CARB.

Good.Lab is not itself a third-party verifier, as verification must be performed independently from the team that manages the emissions data. To streamline the process, we partner with accredited verification firms that meet CARB and ISO 14064-3 standards. Good.Lab’s role is to prepare and validate the underlying data, ensuring it aligns with the GHG Protocol and CARB requirements. Our verification partners then conduct the independent third-party review and issue the assurance statement required under SB 253.

Now we’ll get into how to decode the draft template, and how Good.Lab can help you prepare for compliance in line with it. 

SB 253 Reporting Template Overview: How the Template Is Structured

The template was released along with a memo containing additional instructions on the template’s structure and its use. The template itself is structured across two tabs: “Read Me First” and “Form”

• Read Me First: This tab contains all of the definitions, support materials, and instructions. 
• Form: This contains all of the data fields that covered entities are expected to fill out, including: 
• Organization Information 
• Third-Party Verification 
• Inventory Boundary 
• Scope 1 and 2 Disclosure 
• Calculation Methodology 
• De Minimis / Minor Sources – emissions excluded based on materiality threshold 
• California MRR Fields – provide the California Mandatory Reporting Regulations (MRR) facility ID number (if applicable) 
• Emission Reductions (if applicable) 

It also includes additional optional fields for baseline emissions, allowing companies to demonstrate their progress. As well as the ability to report emissions from different greenhouse gases, such as methane, nitrous oxide, and hydrofluorocarbons, as a CO2 equivalent (CO2e). 

While all of these fields in the template are optional in year 1, they may become required fields in subsequent years. 

The fields CARB uses are exactly aligned with the building blocks our team uses when implementing GHG data systems for clients, meaning the CARB framework aligns with Good.Lab’s existing methodologies and reporting tools. 

Key Template Fields Explained and How to Fill Them 

Across the more than 70 required fields and an additional 100 optional ones, some are much easier to fill than others. Some require little help, whereas others require knowledge of the GHG Protocol Corporate Standard that SB 253 is built on, carbon accounting, and assurance – which will require third-party assistance. 

Here is how each field should be completed, with 3 examples shown from each category.

Organization Information

Category	Data Type	Question
Trade Secret Information	Dropdown	Designate whether or not your report contains Trade Secret Information
Organization Information	Text	Enter the name of your entity
Organization Information	Free Text	Recognized across ESG domains; offers actionable feedback to improve performance

This includes information regarding the company’s address, contact details, and NAICS code (2-digit), which should all be straightforward.

Third-Party Verification

Category	Data Type	Question
3rd Party Verification	Text	Provide the name of the 3rd party assurance provider
3rd Party Verification	Free Text	Provide the email address of the 3rd party verifier
3rd Party Verification	Numeric (10 digits)	Provide the telephone number of the 3rd party verifier organization

CARB requires limited assurance of Scope 1 and 2 from year 1 from a third-party independent assurance provider. The provider has to use an existing framework, such as the ISSA 5000 (IAASB), AA1000, ISO 14060 family, or the AICPA, to perform the audit. 

While the assurance documentation will be provided by the reporting entity separately, the template asks you to specify your verifier and their contact details. 

Important note on assurance: As mentioned above, you cannot use the same company to count and verify your emissions, due to a conflict of interest. And while Good.Lab does not offer assurance service, we work closely with partners to offer an integrated approach.

Inventory Boundary

Category	Data Type	Question
Inventory Boundary	Date	Enter the end date of the reporting period (yyyy-mm-dd)
Inventory Boundary	Dropdown	Select the organizational boundary approach your company uses (Equity Share, Financial Control, Organizational Control)
Inventory Boundary	Free Text	If you picked ‘Equity Share’ from above, provide a list of all obligated entities over which reporting company has equity share, financial control or operational control (separate each item in list with “, ”)

Reporting entities must define their inventory boundary in line with the GHG Protocol, selecting one of three consolidation approaches that determine which operations and facilities are included in their emissions inventory: 

• Operational Control: Covers all facilities where your company manages day-to-day operations and can implement emissions-reduction measures. This is the most common and practical choice for most reporters.
• Financial Control: Applies when your company consolidates an entity’s finances and has the authority to direct financial and operating policies. This is often used by holding companies or investment firms. 
• Equity Share: Includes emissions in proportion to your ownership stake. This is typically used for joint ventures or shared assets where control is limited. 

Choosing the right boundary defines which sites, assets, and activities fall under your reporting scope, and sets the foundation for credible, high-quality, and verifiable disclosure. Good.Lab helps companies evaluate the best-fit boundary approach, identify every emissions source within it, and document the process for transparent reporting and assurance.

Scope 1 and Scope 2 Disclosure

Category	Data Type	Question
Disclosure	Numeric	Enter your Scope 1 total direct emissions (in mtCO₂e)
3rd Party Verification	Yes/No	Please confirm that all the reported Scope 1 emissions have been assured at the limited assurance level
Disclosure	Numeric	Scope 2: Enter your total indirect emissions from Purchased/Acquired Steam (in mtCO₂e)

The core section is where you list your material direct (Scope 1) and indirect (Scope 2) emissions by source (owned mobile combustion, purchased electricity, etc.) within your inventory boundaries.  

You are also expected to confirm you attained assurance for those emissions.

Additionally, there is a field to share an intensity metric (e.g., tCO₂e per $ million in revenue) to facilitate comparison across companies of different sizes. 

Category	Data Type	Question
Disclosure	Numeric	Enter your Scope 1 CH₄ direct emissions (in mtCO₂e)
Disclosure	Numeric	Enter your Scope 1 N₂O direct emissions (in mtCO₂e)
Disclosure	Numeric	Enter your Scope 1 HFC direct emissions (in mtCO₂e)

In the optional columns, reporters can also report their emissions by gas (CO₂, CH₄, N₂O, etc.) if data is available, and they believe it adds value. 

Good.Lab’s GHG emissions calculator tool can easily ingest all activity data (miles traveled, liters of fuel used, etc.) and any utility data and automatically convert it into emissions data and calculate totals. We document all of the methodology and emissions factors used for reporting and assurance to simplify the entire process. 

Methodology

Category	Data Type	Question
Methods	Dropdown	Select the source of emissions factors you are using for Scope 1 from the drop-down menu
Methods	Date	Select the year for source of emissions factors (yyyy)
Methods	Free Text	Enter the source of Global Warming Potential (GWP) factors you are using

These fields request information on the source of the emission factors (e.g., EPA, IPCC), the Global Warming Potential factors (i.e., how other GHGs, such as methane, are translated into CO2e), the tools, models, and calculation methodologies used. 

In the process of calculating your material emissions, Good.Lab’s emissions inventory tool identifies the most relevant emissions factor and records it for use here and in assurances. We use the same methodology standards as the GHG Protocol to ensure alignment with CARB’s expectations. 

De Minimis / Minor Sources

Category	Data Type	Question
Miniscule Sources / de minimis	Free Text	List any sources excluded based on the materiality threshold
Miniscule Sources / de minimis	Free Text	Provide the quantity of emissions associated with sources excluded under the materiality threshold

The de minimis ruling in the GHG Protocol allows companies to exclude small, insignificant sources that don’t meet materiality thresholds and collectively contribute less than 5% of total emissions. These could include small on-site sources or small vehicle fleets. 

The data fields require reporters to list the sources that don’t meet the materiality threshold and the quantity of emissions associated with them. 

Through our initial work in creating an inventory and our boundary scoping services, we help identify and justify de minimis sources for reporting here. 

California MRR Fields (if applicable)

Category	Data Type	Question
MRR Field	Free Text	Provide the California Mandatory Reporting Regulations (MRR) facility ID number(s) associated with your company (separate each item in list with “, ”)

This field indicates if your company already reports to California’s Mandatory Reporting Regulation. A regulation, which has been in effect since 2009, which requires facilities producing more than 10,000 tons of CO2e emissions annually to report their Scope 1 emissions. You can add the IDs of those facilities to ensure consistency across reporting mandates. 

Emissions Reductions (if applicable)

Category	Data Type	Question
Emission Reductions	Dropdown	Choose from the dropdown options if your company utilizes direct contracts for renewable electricity or renewable gas
Emission Reductions	Numeric	If you picked ‘Renewable Electricity’ from above, enter total emission reductions from direct contracts for renewable electricity (in mtCO₂)
Emission Reductions	Numeric	If you picked ‘Renewable Gas’ from above, enter total emission reductions from direct contracts for renewable gas (in mtCO₂)

There is a field for if your company utilizes renewable electricity contracts or direct reduction initiatives from renewable electricity or renewable gas contracts, and the amount of emissions those contracts reduce. 

What’s New: Optional Fields for Future Reporting on SB 253

CARB is testing optional additional data points, which include the last two MMR and emissions reduction fields, plus others, which could be included as mandatory in future reporting cycles: 

• Base-year emissions: for year-over-year tracking. 
• Data quality: You can rate yourself on accuracy, completeness, and alignment with the GHG Protocol.
• Sector-specific guidance used: whether your company used any of the GHG Protocol’s sector-specific standards.

If your company wants to add these, we store data year-over-year, allowing you to easily compare your previous year’s baseline. We also collect emissions from other gas sources and can assess the quality of your data based on its alignment with best practices if you want to fill these out early.

Other Things to Keep in Mind About the SB 253 Template

This draft template is a trial run. However, the data architecture is unlikely to change significantly as it aligns with the GHG Protocol. If it were to change much, it would be around where CARB has requested additional feedback in the comment period: 

• Disclosure by Source vs. by Gas: CARB wants input on whether companies should report Scope 1 and 2 emissions by activity source (e.g., fuel use, electricity) or by individual greenhouse gas type for greater detail. 
• Organizational Boundaries: CARB seeks feedback on whether to standardize one boundary approach (equity share, financial control, or operational control) to improve transparency and comparability across companies. 
• Emissions Reduction Initiatives: CARB is requesting input on how to include actions that cut emissions, such as renewable energy or renewable gas contracts, within the Scope 1 and 2 reporting template. 

CARB’s draft template is the clearest preview yet of what SB 253 compliance will look like. Even though it’s voluntary in year 1, aligning with it early builds the internal structure to apply it when it becomes mandatory, saving time later, and ensures you are demonstrating “good faith” reporting to avoid any SB 253 penalties. 

Good.Lab’s team can help you interpret and fill out every field, create an inventory boundary, calculate all emissions data, and document everything for disclosure and assurance.