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.

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 B Corp certification, companies must submit a full emissions report. Many investors and company leaders are also requiring climate reporting to mitigate long-term financial risks.

What is a Climate Report?

A climate report documents a company's greenhouse gas emissions following international standards like the GHG Protocol. Emissions fall into three categories:

• Scope 1: Direct emissions from owned or controlled sources (company vehicles, on-site fuel combustion)
• Scope 2: Indirect emissions from purchased energy (electricity, heating, cooling)
• Scope 3: All other indirect emissions throughout the value chain (suppliers, vendors, product use)

Apple's categorization illustrates this framework: Scope 1 covers natural gas and propane at facilities; Scope 2 encompasses purchased electricity; Scope 3 includes consumer energy use for device operation.

A strong climate report helps businesses understand their carbon footprint, set reduction goals, and demonstrate transparency to regulators, customers, and partners.

Who Should Report Now?

Legal Requirements:

Some businesses face mandatory reporting obligations:

• California's SB219 requires companies with annual revenues exceeding $1 billion to report Scope 1 and 2 emissions starting in 2026, with Scope 3 emissions due in 2027
• U.S. companies operating in the EU must comply with the EU Corporate Sustainability Reporting Directive, affecting approximately 50,000 companies beginning in 2025

Strategic Advantages:

Even without legal requirements, climate reporting offers benefits including certifications, supply chain eligibility, and competitive positioning. Large companies frequently require suppliers to provide climate reports during procurement. For small and mid-size businesses, voluntary reporting can help secure grants, attract sustainability-focused clients, and prepare for future regulations.

What Happens After Creating a Report?

• Stakeholder reporting: Share with investors, clients, or customers
• Grant applications: Support green innovation funding requests
• Certifications: Fulfill requirements for CDP or Science Based Targets initiative applications
• Goal setting: Identify internal reduction opportunities

Report Quality Standards

Effective climate reports are:

• Accurate: Derived from reliable data using recognized methodologies
• Aligned: Following frameworks like GHG Protocol for trusted, certification-compatible results
• All-inclusive: Comprehensive coverage including Scope 3 emissions when possible
• Accessible: Clear, understandable formats for diverse audiences

Simplifying the Process

Many businesses lack dedicated sustainability staff to create comprehensive reports. Aclymate addresses this gap by providing user-friendly tools for tracking all emission scopes through simple inputs, enabling vendor data collection, generating audit-ready GHG Protocol-aligned reports, and producing exportable documents for certifications and stakeholder communications.