Over the past two decades, the maritime industry has placed greater emphasis on environmental conservation than at almost any other time in its history. This shift has driven advancements in green technologies, including cleaner-burning Tier 3 and Tier 4 engines, reusable and bio-based fuels, hybrid diesel-electric and fully electric systems, as well as alternative energy sources like ammonia, hydrogen, solar, and wind. Many of these innovations — some supported by federal and state funding — have also led to new environmental reporting regulations.
Two of the most anticipated new reporting regulations originate from California: Senate Bill (SB) 253, the Climate Corporate Data Accountability Act, and SB 261, the Climate-Related Financial Risk Act. Both are supported by the California Air Resources Board (CARB) and target companies that do business in California. SB 253 applies to companies with annual revenues exceeding $1 billion, while SB 261 applies to those exceeding $500 million. Notably, these bills are designed to extend beyond operations within California, requiring large companies to report environmental data from their broader, global operations.
Each bill differs slightly in focus and is still undergoing finalization by the state. Among its provisions, SB 253 will require companies with annual revenues of $1 billion or more to report their Scope 1 and Scope 2 greenhouse gas emissions in 2026, based on 2025 data. In 2027, reporting will expand to include Scope 3 emissions, covering 2026 outputs. (Scope refers to the derivation of emissions.) SB 261, modeled after the European Task Force on Climate-Related Financial Disclosures (TCFD), will require applicable companies to submit climate-related financial risk reports by Dec. 31, 2025. Public education efforts and clarifications around specific provisions of both bills are ongoing.
In addition to California’s Senate bills, there is a growing trend across the U.S. toward requiring both public and private companies to report their environmental impact. Several other states — including Colorado, Illinois, New York, New Jersey, and Washington — have begun introducing their own environmental reporting frameworks. As with any new regulation, there will likely be a period of debate and adjustment before these measures are either implemented or set aside. However, it is increasingly clear that the U.S. is moving toward a broader, more comprehensive environmental reporting model for businesses.
