SUSTAINABILITY DESK

Week of March 23

CARB sketched out three Scope 3 paths for California SB 253, a global assurance standard is quietly becoming mandatory everywhere, Microsoft bought a million tons of biochar, and the federal government spent nearly $1 billion to ensure two offshore wind projects stay unbuilt. Happy Friday — grab a coffee, and dive in.

Table of Contents

CALIFORNIA COMPLIANCE

CARB’s Scope 3 choose-your-own-adventure

At its March 23 workshop, CARB laid out three paths for Scope 3 reporting under California SB 253 starting in 2027:

  • Broad applicability: all in-scope companies report all categories from day one
  • Sector phase-in: heavy emitters (transportation, industrial) go first
  • Category phase-in: start with the most commonly reported categories, such as business travel and purchased goods

Companies can mix calculation methods—spend-based, activity-based, supplier-specific, or hybrid. Limited assurance for Scope 1 and 2 kicks in for 2027; Scope 3 assurance is not required until 2030. Comments are due April 13.

For 2026, CARB is still in “give what you have” mode.

ENERGY MARKETS

The energy crisis that makes everything else harder

IEA Executive Director Fatih Birol called the Middle East conflict “the greatest global energy security threat in history”—saying its combined impact exceeds the 1970s oil crises and the 2022 gas shock.

  • The Strait of Hormuz, which normally carries approximately 20% of global oil consumption, has slowed to a trickle since the conflict began February 28
  • Over 40 energy assets across nine Middle Eastern countries have been severely damaged
  • Brent crude surged past $100 per barrel; global LNG supply is down approximately 20%
  • The IEA ordered its largest-ever release of emergency oil reserves—400 million barrels—on March 11
  • The agency is now recommending demand-side measures: remote work, lower highway speed limits, and increased public transit use

Renewables and battery companies are growing at record rates in response, but rising prices have also increased coal use in Asia and spurred new fossil fuel expansion in Canada and the Arctic.

ASSURANCE STANDARDS

The sustainability assurance standard nobody’s heard of (but should)

ISSA 5000, the first global standard dedicated to sustainability assurance, is gaining traction ahead of its December 2026 effective date.

  • Canada, Brazil, and New Zealand have joined the growing list of countries adopting or converging with it, alongside Australia, the UK, South Africa, Pakistan, and others
  • The standard covers both limited and reasonable assurance, works with any reporting framework (ESRS, ISSB, GRI), and is designed for both accountant and non-accountant assurance providers
  • It replaces ISAE 3000 for sustainability engagements
  • CARB has already listed ISSA 5000 as an acceptable assurance standard for California SB 253 compliance starting in 2027

As mandatory disclosure regimes multiply, assurance is the next bottleneck. ISSA 5000 is becoming the global baseline that connects California, the EU, and 40-plus other jurisdictions under one quality framework.

CARBON MARKETS

Microsoft goes big on biochar

Microsoft signed a 10-year deal with Iowa-based Liferaft to purchase 1 million carbon removal units—the largest biochar carbon removal agreement in U.S. history.

  • Liferaft’s facilities in Iowa and Illinois will convert agricultural and municipal waste into biochar via pyrolysis
  • Biochar locks carbon in soil for hundreds of years while improving soil health and crop yields
  • All credits are tracked through MRV systems and registered on an ICROA-endorsed registry
  • Microsoft has now purchased over 34.6 million tonnes of carbon removal to date, far outpacing any other corporate buyer

The deal signals that durable, verifiable carbon removal is scaling from pilot stage to industrial deployment.

ENERGY POLICY

The federal government spent $928M to stop wind nobody was building

The administration paid TotalEnergies approximately $928 million to surrender two offshore wind leases off New York and North Carolina—and pledge never to develop U.S. offshore wind.

  • TotalEnergies had already paused both projects after the election; the money will be redirected to LNG and oil projects in Texas and the Gulf—investments the company had already committed to
  • New York Governor Hochul called it “a pay-not-to-play scheme”; industry groups warned it raises energy costs for consumers
  • Other developers holding over $5 billion in undeveloped leases, including RWE at $1.2 billion, may seek similar buyouts
  • Meanwhile, Orsted’s 700-MW Revolution Wind came online in Rhode Island and Vineyard Wind 1 (800 MW) completed construction in Massachusetts, both after surviving multiple stop-work orders
Ready to streamline your emissions reporting and compliance readiness?

Frequently asked questions

At its March 23 workshop, CARB outlined three approaches for Scope 3 implementation beginning in 2027. The first would require all in-scope companies to report all Scope 3 categories from day one. The second would phase in requirements by sector, starting with heavy emitters in transportation and industrial industries. The third would phase in by category, beginning with the most commonly reported ones such as business travel and purchased goods. Companies can use a mix of calculation methods—spend-based, activity-based, supplier-specific, or hybrid. Scope 3 assurance is not required until 2030. Public comments on the proposed approach are due April 13.

Limited assurance for Scope 1 and Scope 2 emissions kicks in for the 2027 reporting year. Scope 3 assurance is not required until 2030. For the 2026 reporting year—with the first deadline of August 10—CARB is accepting good-faith submissions without assurance requirements. CARB has identified ISSA 5000 as an acceptable assurance standard for SB 253 compliance beginning in 2027.

ISSA 5000 is the first global standard dedicated specifically to sustainability assurance. Effective December 2026, it covers both limited and reasonable assurance, is compatible with any major reporting framework including ESRS, ISSB, and GRI, and is designed for use by both accountant and non-accountant assurance providers. It replaces ISAE 3000 for sustainability engagements. With mandatory disclosure requirements expanding across California, the EU, the UK, and 40-plus other jurisdictions, ISSA 5000 is quickly becoming the global quality baseline that connects them—and CARB has already approved it for SB 253 compliance.

Biochar is produced by heating organic material (agricultural waste, wood chips, municipal biomass) through a process called pyrolysis in a low-oxygen environment. The resulting material is stable and locks carbon in soil for hundreds of years, while also improving soil health and crop yields. Microsoft’s 10-year agreement with Liferaft, the largest biochar carbon removal deal in U.S. history, uses MRV (monitoring, reporting, and verification) systems and an ICROA-endorsed registry to track credits—signaling that high-quality, durable biochar credits can meet institutional-grade verification standards.

The federal government’s payment of approximately $928 million to TotalEnergies to surrender offshore wind leases and commit to not developing U.S. offshore wind creates uncertainty for corporate buyers counting on new offshore capacity to meet renewable energy targets. Companies with power purchase agreements or renewable energy goals tied to East Coast offshore wind development should monitor whether other developers holding undeveloped leases seek similar buyouts. The good news: completed projects like Orsted’s Revolution Wind and Vineyard Wind 1 are online and operational, demonstrating that offshore wind capacity can be delivered despite political headwinds.

Oil above $100 per barrel and a 20% drop in global LNG supply create immediate pressure on Scope 1 and Scope 2 emissions calculations, particularly for companies with energy-intensive operations or fossil-fuel-dependent supply chains. Rising energy prices also strengthen the financial case for energy efficiency investments and on-site renewable generation. Companies with science-based targets or net zero commitments should assess how prolonged energy market volatility affects their transition plan timelines and the cost assumptions underlying their decarbonization roadmaps.

Corinne Hanson headshot

Corinne Hanson is VP of ESG Strategy at Greenplaces, the all-in-one sustainability platform helping businesses turn climate goals into results. She brings over a decade of experience in corporate sustainability, including leadership roles at SH Hotels & Resorts, Global Footprint Network, and the NRDC. A George Washington University grad with degrees in International Relations and Philosophy, Corinne spends her time outside the office the same way she spends it inside: trying to keep the planet in good shape.

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