Does My Business Need a Climate Report? Here’s How to Tell

Aside from proving an environmental commitment, climate reporting is crucial for companies to stay competitive. In 2025, more companies than ever will need to adapt to evolving climate related expectations. 

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Between new regulations, evolving certification standards, and rising expectations from investors and customers, climate reports are now a hot topic for many businesses. To acquire one of the most well-known sustainability certifications, B Corp, companies must submit a full report of their emissions. To mitigate long term financial risks associated with neglecting climate goals, many investors and company leaders are also requiring climate reporting to inform decision making. 

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It's clear that climate reporting is more important than ever. 

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What is a climate report?

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At its core, a climate report is a document that shows a company’s greenhouse gas emissions. Climate reports often follow international standards like the GHG Protocol, which provides a trusted framework for calculating and presenting emissions data. Emissions are separated into three categories:

• ‍Scope 1: Direct emissions from sources owned or controlled by the company (e.g., company owned vehicles or on site fuel combustion).
• ‍Scope 2: Indirect emissions associated with purchased energy (e.g., electricity, heating, or cooling).
• ‍Scope 3: All other indirect emissions that occur throughout the company’s value chain, such as those from suppliers, vendors, and product use.

Here’s how a major company like Apple categorizes their emissions:

• ‍Scope 1: Emissions from sources Apple owns or controls, such as natural gas, diesel, and propane used at facilities. 
• ‍Scope 2: Emissions from the electricity Apple purchases to power its offices.
• ‍Scope 3: Emissions from product use, such as the energy consumers use to charge and operate Apple devices over their lifetime.

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A strong climate report can help your business understand its carbon footprint, set goals for reduction, and show transparency to stakeholders, whether that’s regulators, customers, or partners.

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Who should be focusing on climate reporting right now? Here’s a quick overview:

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Some businesses are already legally required to report emissions. 

• California’s regulation SB219 requires reporting on Scope 1 and 2 emissions in 2026, and Scope 3 emissions in 2027, from companies with annual revenues exceeding $1 billion. 
• Some U.S. based companies that do business in the EU must adhere to EU CSRD (Corporate Sustainability Reporting Directive). Under this directive, starting in 2025, approximately 50,000 companies doing business in the EU will be required to publish detailed sustainability reports including emissions data.

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Even if you’re not legally required to report emissions, many businesses are strongly encouraged to do so because it offers benefits like obtaining key certifications and attracting sustainability focused partners and customers.

Additionally, many large companies ask suppliers to provide climate reports as part of their procurement processes. In order to stay in their supply chain, a climate report might be needed. 

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For small and midsize businesses, a climate report is a strategic move, even if it’s not required yet. It can help them stand out from competitors when applying for grants, pitching to clients, or bringing in climate conscious customers. It also positions the business to grow alongside regulations and prepare for future mandates.

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Once you’ve created a climate report, what happens next? 

• Stakeholder reporting: Share the report with investors, clients, or customers to demonstrate your sustainability efforts.  
• Grant applications: Many grants, especially those supporting green innovation, will ask for emissions data.
• Certifications: Climate data is a key part of applications to groups like CDP (Carbon Disclosure Project) or SBTi (Science Based Targets initiative). 
• Goal setting: Internally, it can help your team identify opportunities to reduce emissions which provides a clear way to improve environmental performance.

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Emissions data serves many purposes when documented correctly. A good climate report is:

• Accurate: The numbers should come from reliable data and calculated using recognized methodologies. 
• Aligned: Following frameworks like the GHG Protocol ensures your report is trusted and compatible with certification programs.
• All inclusive: Since Scope 3 often makes up the majority of emissions, including when possible gives a more complete picture.
• Accessible: Whether you're talking to a grant reviewer or a customer, a clear report that’s easy to understand and share goes a long way.

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Many businesses worry they lack the staff or technical expertise to create a comprehensive climate report. Fortunately, the right tools can simplify the process.

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Aclymate is designed specifically for businesses without a sustainability expert on their team seeking professional quality reports. With our user friendly platform, you can easily track Scope 1, 2, and 3 emissions through simple data inputs. You can also invite vendors to securely share their emissions data. Aclymate then automatically generates audit ready reports aligned with the GHG Protocol. Finally, you can effortlessly export these reports for certifications, grant applications, and investor updates.

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Whether you’re reporting for compliance, for clients, or just because it’s the right thing to do, Aclymate gives you the tools to do it flawlessly.