SB 253 · California Climate Accountability

You supply Costco.
Scope 3 disclosure
is now mandatory.

California SB 253 requires companies with over $1 billion in annual revenue — and their suppliers — to publicly disclose Scope 3 emissions by August 2027. YKO maps your gap, scores your position, and delivers the data package your buyer needs.

Request an assessment What is SB 253?
SB 253 signed into law October 2023
Scope 1 + 2 first report January 2026
Scope 3 first report due August 2027
Time remaining 17 months

What SB 253 actually requires

The Climate Corporate Data Accountability Act mandates annual greenhouse gas reporting for large US-based companies operating in California. The Scope 3 requirement is the one catching most brands off guard.

Who it covers

$1B+ annual revenue

Any US-based company with annual revenues exceeding $1 billion that does business in California must report. This includes companies headquartered outside California. Costco, Target, Whole Foods — and every supplier they list as a material vendor — falls within scope.

The enforcement mechanism

Buyer questionnaires cascade down

Even if your company is under the $1B threshold, your retail buyer is not. Retailers will require Scope 3 supply chain data from vendors to complete their own SB 253 filings. Non-compliant suppliers face delisting risk. This is already happening in Costco's procurement process.

Penalties

Up to $500K per year

The California Air Resources Board (CARB) can levy civil penalties of up to $500,000 per reporting year for non-compliance. Fines apply separately for late filing, inaccurate data, and failure to have reports third-party verified.

Third-party verification

Assurance is required

SB 253 requires independent verification of all reported data. A sustainability score alone is not sufficient — the underlying emissions data must be auditable by a third-party assurance provider. YKO's data package is structured to support verification.

Scope 1, 2, and 3 — explained simply

Most brands have Scope 1 and 2 data. Scope 3 is where 70–90% of emissions actually live — and where almost no brand has full coverage.

Scope 1

Direct emissions

Combustion from company-owned and controlled sources. Boilers, company vehicles, on-site manufacturing processes. Relatively easy to measure. Most companies have this.

Scope 2

Purchased energy

Indirect emissions from purchased electricity, steam, heating, cooling. Calculated from utility bills and energy purchase records. Standard reporting for most mid-size companies.

Scope 3

Value chain emissions

Everything else: raw material extraction, supplier manufacturing, product transport, customer use, end-of-life disposal. Scope 3 represents the majority of emissions for most consumer goods brands — and it requires supply chain data most brands do not have.

Required by SB 253 — August 2027

Costco-adjacent brands in the YKO database

These brands sell into premium retail channels where Scope 3 buyer questions are already arriving. Scores reflect independent assessment — not self-reported data.

Brand Category YKO Score Tier Scope 3 readiness SB 253
Patagonia
apparel
85.5 Committed
78% ready
In scope
Picture Organic
apparel
75.0 Committed
65% ready
Under threshold
Cotopaxi
apparel
66.3 Progressing
45% ready
Under threshold
Organic Valley
dairy
51.5 Early Stage
32% ready
In scope
prAna
apparel
57.5 Early Stage
28% ready — brand-level data gap
In scope (via Columbia)

Readiness scores reflect independently assessed data coverage — not self-reported status. View a full brand report →

What YKO delivers for your SB 253 filing

An independent assessment your buyer can cite, your CFO can sign off on, and your assurance provider can verify against.

Scope 3 gap analysis

We map which GHG Protocol categories your current data covers and which are missing. You receive a category-by-category breakdown with data sufficiency ratings and recommended next steps.

Structured data package

All findings delivered in a structured format your buyer's procurement team and assurance provider can import directly. Includes methodology notes and confidence ratings for each data point.

YKO score and tier

Your independently assessed sustainability score across six dimensions — certifications, supply chain, carbon, packaging, narrative, and circularity. The score your buyer can cite and your marketing team can use.

Competitor benchmarking

See how your score compares to other brands in your category. Understand where category leaders are investing and what gaps you can close before buyer questionnaires arrive.

Supplier chain mapping

We identify which tiers of your supply chain carry the highest Scope 3 emissions exposure and flag suppliers already in the YKO database with their own scores and data availability.

Ongoing monitoring

Scores update as your disclosures improve. Dashboard subscribers receive alerts when competitor scores change, new certification standards are recognized, or regulatory guidance shifts.

Three ways to work with YKO

From a standalone gap analysis to a full intelligence subscription with ongoing Scope 3 monitoring.

Brand
$299
per month
Independent score, competitive benchmarking, and demand signal data from real consumer scans. The foundation for buyer conversations.
  • YKO score across six dimensions
  • Category competitor comparison
  • Real scan demand data
  • Public brand page on yko.earth
  • Monthly score alerts
Start with Brand
SB 253 Report
$4,800
one-time
A standalone SB 253 readiness report. No subscription required. Delivered within 10 business days. Structured for your assurance provider and procurement buyer.
  • Full Scope 1, 2, 3 gap analysis
  • GHG category coverage map
  • Data sufficiency ratings
  • Recommended remediation steps
  • Deliverable in PDF and structured JSON
Order a report

What brands are asking

Our revenue is under $1 billion. Does SB 253 apply to us?
Not directly — but your retail buyer is almost certainly above the threshold. Costco, Target, Whole Foods, and similar retailers will push Scope 3 data requests down to their supplier base to complete their own SB 253 filings. If you sell into any of these channels, expect buyer questionnaires by late 2026. Being prepared early is a competitive advantage, not just a compliance exercise.
We already have USDA Organic and Fair Trade certifications. Does that satisfy SB 253?
No. Certification status is distinct from emissions reporting. USDA Organic covers agricultural practices. Fair Trade covers labor conditions and pricing. Neither produces the quantified Scope 3 emissions data required under SB 253. They can inform your Scope 3 calculations for specific categories, but the certification itself does not substitute for emissions measurement.
What is Scope 3 Category 11 and why does it matter so much?
Category 11 is use-of-sold-products — the emissions generated when customers use what you make. For food and beverage brands, this is often the largest single category. For apparel, it includes washing and drying garments. Zero of the eleven brands currently in the YKO database report Category 11 data. This is the most common filing gap and the one most likely to draw scrutiny from CARB auditors.
How is YKO's assessment different from what a sustainability consultant would do?
Consultants typically help you self-report existing data. YKO provides an independent third-party assessment of what your data actually shows — structured the same way across every brand we score. This means your score is comparable to competitors, credible to buyers, and structured to support third-party assurance. It is an intelligence product, not a consulting engagement.
We are a subsidiary of a larger company. Does our parent's SB 253 filing cover us?
Only partially. Your parent company's SB 253 filing will cover consolidated Scope 1 and 2 emissions. However, brand-level Scope 3 data is often not broken out in consolidated filings — and procurement buyers require brand-level data to assess their own supply chain exposure. The prAna situation (Columbia subsidiary with no brand-level Scope 3 data) is the exact pattern most subsidiary brands are in and cannot remain in post-2027.
How quickly can YKO deliver an assessment?
A standalone SB 253 report is delivered within 10 business days of receiving your data inputs. Ongoing subscription scores update quarterly. If you are responding to an active buyer questionnaire, contact us directly — expedited turnaround is available.

August 2027 is closer than it looks.

Most brands that start their Scope 3 data collection in 2027 will not finish in time. The supply chain data gathering alone takes six to nine months. Start now, have a credible answer when your buyer asks.

Request an assessment See a sample brand report