September 16, 2025
Leading companies today use environmental, social and governance (ESG) and sustainability data not only to meet regulatory requirements, but also to inform strategic decision-making across the enterprise.
Evolving regulations — along with stakeholder and consumer demands — are driving companies’ need for ESG and sustainability tools, such as UL 360 software from UL Solutions.
“Investor and stakeholder expectations are driving demand for sustainability transparency, even amid shifts in the regulatory landscape,” said Marc Hobell, director and general manager of enterprise sustainability, ESG data and reporting for the Software and Advisory group at UL Solutions.
Many view California’s Senate Bill 253 (SB 253), the Climate Corporate Data Accountability Act, as a key factor for corporate climate transparency. SB 253 applies to companies that have over $1 billion (USD) in annual revenue doing business in California. It will affect thousands of companies, and it will indirectly impact many businesses globally throughout the supply chains of those covered companies.
Authorized under SB 253, the California Corporate Greenhouse Gas Reporting Program will require companies to begin annual reporting of Scope 1 and 2 emissions with limited assurance by June 30, 2026, and with reasonable assurance required beginning in 2030. Scope 3 emissions reporting will be required starting in 2027. Scope 3 emissions include all indirect emissions that are not covered by Scope 1 (direct emissions) or Scope 2 (purchased energy). Because Scope 3 emissions occur outside a company’s direct control, they can be difficult to measure and manage without robust, adaptable software.
Many businesses are preparing for Scope 3 reporting by conducting materiality assessments, developing greenhouse gas inventory methodologies and organizing internal teams for data collection.
UL 360 (part of the ULTRUS software portfolio) can help streamline data collection to support analysis, disclosure and reporting. UL 360 software can help companies manage sustainability goals and all 15 Scope 3 categories — including high-impact areas like purchased goods and services — by collecting, validating and analyzing emissions data across complex supply chains.
Separately, UL Solutions provides standards-aligned assurance services for organizations that are ready for third-party review of their emissions data.
Leading companies pay close attention to the regulatory landscape, knowing that it can change. According to The State of Corporate Sustainability Disclosure 2025, a report published by the University of California, Los Angeles (UCLA), more than 88% of S&P 500 companies disclose Scope 1 and 2 emissions, and Scope 3 disclosure has recently risen to 69.8%.
The UCLA report offers observations related to SB 253 as well as other legislation, including California’s Senate Bill 261 (SB 261), the Climate‐Related Financial Risk Act.
SB 261 applies to companies with over $500 million (USD) in annual revenue that do business in California. Covered companies will be required to submit biennial reports disclosing their climate-related financial risks and the strategies they are using to mitigate them. The California Air Resources Board (CARB) will open the public docket for SB 261 risk reporting by Dec. 1, 2025, and reports must be uploaded as a URL link on the public docket by Jan. 1, 2026.
UL 360, which has received numerous honors from independent firms, recently earned recognition in the “Leader” category of the Verdantix Green Quadrant: ESG and Sustainability Reporting Software 2025 report, highlighting its comprehensive capabilities to help companies drive performance and meet mandatory and voluntary standards.
UL 360 allows businesses to collect, track and share sustainability data from multiple sources. The software can significantly reduce manual processes, improve efficiency and contribute to cross-functional collaboration throughout an enterprise.
“The need for real-time, auditable data is essential,” Hobell noted. “As regulations evolve, UL 360 is continuously updated. Today, it is critical that leaders throughout an organization have easy access to accurate, meaningful data that can inform strategic decisions.”
Verdantix recognized ULTRUS for its strengths, including its highly configurable tools and its scalability for organizations seeking a cohesive environment, health and safety (EHS) and sustainability platform. Notably, Verdantix cited how the platform’s architecture enables seamless data flow from EHS activities into ESG and sustainability modules for disclosures, emissions and performance tracking, helping fill a need for organizations seeking connected operational and sustainability insights within a single platform.
UL Solutions has previously appeared as a “Leader” company in the 2025 Verdantix Green Quadrant: EHS Software report, the 2023 Verdantix Green Quadrant: ESG Reporting and Data Management Software report, and the 2022 and 2023 Enterprise Carbon Management Software reports.
To help companies adapt to new legislation, UL Solutions has published numerous articles:
- The hidden cost of Scope 3 — Why SB 253 could reshape supplier relationships forever
- SB 261 and the CFO — Why climate risk is now a financial reporting issue
- SB 219’s quiet revolution: How a procedural bill changed the game for global enterprises
- The assurance gap: Are you ready for third-party verification under SB 253?
To learn more about the scope and implications of these climate disclosure laws, visit our on-demand webinar page.
To learn more about UL Solutions’ ESG and sustainability software, visit the UL 360 web page.