California AB1305 Compliance

 

California AB 1305 Voluntary carbon market disclosures business regulation act (VCMDA)

The following information is provided by Klean Kanteen, Inc. (“Klean Kanteen”) in accordance with California Assembly Bill 1305, the Voluntary Carbon Market Disclosures Business Regulation Act (VCMDA), and its goal to promote transparency and integrity of climate-related claims and participation in voluntary carbon markets (VCMs).

As a company that achieved The Climate Label certification in 2025, Klean Kanteen has demonstrated progress against science-aligned reduction targets for Scopes 1, 2 and 3 greenhouse gas emissions (“emissions”) and financial investment in activities that reduced the company’s emissions. Unlike previous years’ certifications under The Climate Label and Climate Neutral standards, Klean Kanteen did not participate in the voluntary carbon market (VCM) in 2025 to avoid or remove additional emissions. Klean Kanteen invested 100% of its 2025 climate transition budget (CTB) in value chain abatement and other contributions to a net zero transition, making it unnecessary to invest in beyond value chain mitigation (BVCM) activity such as VCM participation.

Klean Kanteen did make claims in 2025 regarding significant emissions reduction as reported in our 2024 Brand Impact Summary. The information below is current, accurate, and to the best of our knowledge, clarifies any and all claims made by Klean Kanteen in 2025 regarding our climate-related certification and emissions reductions. Information is also provided for transparency regarding past VCM participation.

The Climate Label certified

Klean Kanteen's strategy on climate action follows a hierarchy of decarbonization measures:

• Set a science-aligned emissions reduction target for Scope 1 and 2 emissions, and create and implement a plan to achieve or exceed this target (e.g., reduce energy demand, implement energy efficiency measures or investments, install onsite renewable energy, and procure additional renewable energy as needed)
• Set a science-aligned emissions reduction target for Scope 3 emissions, and create and implement a plan to achieve or exceed this target (e.g., engage supply chain partners to increase energy efficiency and use renewable energy, adopt lower carbon product materials, prefer lower emission transportation modes, and explore circular business models)
• Contribute to programs/projects that avoid or remove greenhouse gases beyond our own operations and value chain to support global emissions drawdown

In support of this strategy, Klean Kanteen certified in 2025 against The Climate Label standard. This third-party certification is an external accountability mechanism to help ensure climate action (as described above) remains at the top of Klean Kanteen’s priorities.

The Climate Label certification standard is maintained by the independent, nonprofit organization, The Change Climate Project (TCCP). To become certified and earn The Climate Label, companies must adopt an internal carbon fee to support their climate transition and then fund projects that cut emissions from their operations and value chain. They may also fund high impact carbon removal and mitigation projects around the world. Companies must account for cradle-to-customer emissions, and clearly report their emissions (scopes 1, 2 and 3) following GHG Protocol methodology along with targets and plans for reductions. The climate progress of companies with The Climate Label is independently evaluated each year. More information about The Climate Label standard is available at https://www.changeclimate.org/standards and Klean Kanteen’s performance against this standard is available at Klean Kanteen | A Climate Label Certified Brand.

Emissions Reduction

Klean Kanteen’s near-term GHG emissions reduction targets align with science and follow the calculation method set by the Science-Based Targets initiative (SBTi), a globally recognized partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) that defines and promotes best practice in emissions reductions and net-zero targets in line with climate science. Using the SBTi target-setting tool, Klean Kanteen has set the following absolute emissions reduction targets:

• Reduce scopes 1 and 2 emissions 58.8% from a 2016 baseline by 2030
• Reduce scope 3 emissions 30% from a 2019 baseline by 2030

The following is a description of GHG emissions reduction claims made in 2025 from our 2024 Brand Impact Summary and the basis for those claims.

Reduction claim #1: By switching to 90% post-consumer recycled 18/8 stainless steel, we’re reducing our climate pollution from the raw material production of stainless steel by ~50% per kilogram of material.

The emissions factor for 90% post-consumer recycled 18/8 stainless steel reported by the material producer is 2,620 mt CO2e / mt of material. The emissions factor reported by the material producer for conventional 18/8 stainless steel is 5,623 kg CO2e / mt of material. The percent reduction in GHG emissions from raw material production of stainless steel was calculated using the equation for percent change as: (5,623 – 2,620) / 5,823 = 53%. We reported a conservative estimate of ~50% reduction per kg of material.

Reduction claim #2: ~82% of the energy used to manufacture Klean products in 2023 came from clean, renewable sources of electricity. The increase in clean, renewable electricity in Klean product manufacturing has reduced the emissions intensity of this activity by ~85%.

In 2023, energy sources for manufacturing of Klean Kanteen products included standard grid mix electricity (1,170 GJ), renewable electricity (7,833 GJ), and combustible sources like propane and natural gas (650 GJ). Total energy from all sources summed to 9,653 GJ, with renewable electricity equal to 81% of the total. The claim overstates renewable electricity in Klean Kanteen product manufacturing by 1%.

Emissions intensity (kg CO2e / GJ) of energy use in manufacturing of Klean Kanteen products dropped from 211 in 2019 (Klean’s baseline for scope 3 measurement) to 32 in 2023. The percent reduction of GHG emissions intensity was calculated using the equation for percent change as: (211 – 32) / 211 = 85% decrease.

As noted in Klean Kanteen’s Brand Impact Summary, renewable electricity in Klean’s product manufacturing came from direct and indirect sources. Claims related to emissions intensity reduction included zero emission attributes of market-based electricity sources.

Reduction claim #3: Klean Kanteen’s 2020-2023 GHG emissions reduction actions resulted in drawdown of our emissions for that period by 50%.

Drawdown was calculated as the percent change in Klean Kanteen’s total scope 3 emissions without reduction actions (42,697 mt CO2e) and with reduction actions (20,973 mt CO2e) from 2020 to 2023: (42,697 – 20,973) / 42,697 = 50.8% decrease. The claim was stated conservatively as 50%.

The chart below shows scope 3 emissions after accounting for reduction actions, followed by emissions that were eliminated by each of the four reduction actions: renewable electricity in product manufacturing (including direct and indirect sources) in place of grid-based electricity, use of 90% post-consumer recycled (PCR) stainless steel in place of conventional stainless steel, use of 100% PCR polyethylene for product protection during transit in place of compostable material, and increase in ocean freight over air freight for product transit.

Each emissions reduction value in the chart below was calculated as the difference between emissions from the activity after the reduction action and emissions that would have occurred under scenarios previously practiced by Klean or its suppliers (as described above).

 

	Emissions Reduction (mt CO2e)
	Reported Scope 3 Emissions	Renewable Energy in Manufacturing	90% Post-Consumer Recycled SS	100% Post-Consumer Recycled Polybag	Reducing Air Freight	Total mt CO2e Reduced
2020	5,393	2,675	0	0	106	2,781
2021	7,793	6,649	349	11	211	7,220
2022	5,852	6,881	1,732	11	571	9,194
2023	1,935	1,687	614	3	225	2,528
TOTAL	20,973	17,892	2,694	25	1,113	21,724

 

As noted in Klean Kanteen’s Brand Impact Summary, renewable electricity sources in manufacturing include onsite generation and procurement of market-based instruments by Klean and its suppliers. All sources are counted as zero emission.

Reduction claim #4: Klean is on target to exceed its 2030 GHG emissions reductions goals for scopes 1, 2 and 3.

The charts below show actual and predicted GHG emissions for scopes 1 and 2 and for scope 3 (location-based and market-based) from baseline year to target year. The straight line in each chart represents the emissions reduction target annualized from baseline year to target year. The bar graph indicates annual emissions and they are well below the reduction target line through 2030.

Historic investment in BVCM

Klean Kanteen’s historic investment in BVCM through purchase of carbon credits supported activities to avoid or remove GHG emissions through renewable energy, forest restoration, forest conservation, landfill gas capture and sequestration, commercial-scale composting, and improved shipping energy efficiency. Emissions avoided or removed through the purchase of carbon credits were not subtracted from Klean Kanteen’s annual GHG inventory, ie, they were not considered a form of reduction. These BVCM contributions helped finance climate action in support of the global transition to a zero-carbon future and represented a self-imposed tax while working to drawdown our emissions entirely or nearly so.

Klean Kanteen approached contribution to projects beyond our own operations and value chain in accordance with best practices outlined in “WWF position and guidance on voluntary purchases of carbon credits”. The World Wide Fund for Nature (WWF) states that the purchase of high-quality carbon credits can be an effective way for businesses to contribute to their climate goals when those purchases are part of a broader strategy to reduce emissions. This was the case for Klean Kanteen’s carbon credit purchasing activity.

Details about projects supported historically by Klean Kanteen through investment in carbon credits are provided below (amount of credits purchased by Klean Kanteen and purchase date are in parentheses). Project documents are provided through the associated project links to each registry.

In addition, we have stated the carbon credit methodology for each project, status of the methodology assessment by the Integrity Council for the Voluntary Carbon Market (ICVCM), and date of decision to approve or not approve the methodology. These assessments began in late 2023 to determine adherence to ICVCM’s Core Carbon Principles (CCPs) and are still underway for many methodologies. The CCPs are ten fundamental, science-based principles for identifying high-quality carbon credits that create real, verifiable climate impact. Developed with input from hundreds of organizations, they set a global benchmark for high integrity in the voluntary carbon market to raise it to a consistent level of quality and ensure it accelerates progress towards the 1.5°C target. Klean Kanteen is committed to only purchasing carbon credits based on methodologies that, as of the date of purchase, are “CCP-Approved” or have not received a status of “Does not meet”.

• A-Gas V9 project (1,581 credits purchased on or around 8/8/2024), ACR Certified Reclaimed HFC Refrigerants, Propellants, and Fire Suppressants v 2.0 methodology, ICVCM assessment status: In Progress, American Carbon Registry Project 774 - The A-Gas US, Inc. voluntary emission reduction project, A-Gas V9, was undertaken to encourage the recovery of used HFCs and to avoid production of virgin HFCs through the reclamation of HFCs. The project HFCs were U.S. domestically sourced and were reclaimed from fire suppression systems. The HFC was reclaimed to industry specification standards at A-Gas facilities with the intention of reselling into the market. All applicable laws and regulations were followed throughout this project.
• Gansu Wind Farm Project (300 credits purchased on or around 6/22/2023), ACM0002 – Grid-connected electricity generation from renewable sources – Version 20.0 methodology, ICVCM assessment status: Does not meet (7/30/2024), Verified Carbon Standard Project 728 – This renewable electricity Project is located in Yumen Town, Yumen City, Gansu Province, the People’s Republic of China. The Project purpose is to generate renewable electricity from wind and supply to the Northwest China Power Grid (NWPG). The NWPG currently uses conventional fossil fuel based thermal power plants to meet the majority of regional electricity demand, resulting in high levels of carbon dioxide emissions. The electricity generated by the project will be delivered to NWPG to avoid emissions from an equivalent amount of electricity otherwise generated by fossil fuel.
• Shandan Dongle Beitan 50MW Solar Project (6,000 credits purchased on or around 11/15/2022), ACM0002 – Grid-connected electricity generation from renewable sources – Version 15.0 methodology, ICVCM assessment status: Does not meet (7/30/2024), Verified Carbon Standard Project 1362  – This renewable electricity project is a newly built grid-connected photovoltaic power plant with installed capacity of 50MW located in Dongle Beitan, Shandan County, Zhangye City, Gansu Province of China. The purpose of the project is to generate electricity by using renewable solar energy, and the electricity generated by the project will be delivered to NWPG to avoid emissions from an equivalent amount of electricity otherwise generated by fossil fuel.
• Green Trees Reforestation Project (467 credits purchased on or around 3/17/2021), ACR Afforestation and Reforestation of Degraded Lands – v1.0 methodology, ICVCM assessment status: CCP-Approved (7/8/2025), American Carbon Registry Project 114 – The purpose of this project is to restore degraded agricultural lands back to their original and highly beneficial forest ecosystem in the lower Mississippi River Valley-Arkansas, Mississippi, Louisiana, Kentucky, Illinois, Missouri, and Tennessee. Trees are planted on private land throughout the critical watershed, protected with conservation easements, and third-party verified to scientifically measure the carbon removed.
• Cordillera Azul National Park (4,000 credits purchased on or around 3/17/2021 and 7,262 credits purchased on or around 2/21/2022), VM0007 Reducing Emissions from Deforestation and Forest Degradation methodology, ICVCM assessment status: Method Excluded (11/15/2024), Verified Carbon Standard Project 985 – The Cordillera Azul National Park project is in Peru's high forest between the Andes and the Amazon Basin. This project is working in a landscape of 3.7 million hectares (nearly the size of the Netherlands) to protect 1.6 million hectares of threatened forest and its capacity to remove carbon dioxide from the atmosphere.
• Clinton Landfill #2 Gas Collection and Combustion Project (10,777 credits purchased on or around 2/10/2020), ACM0001 – Flaring or use of landfill gas methodology, ICVCM assessment status: CCP-Approved (5/30/2024), Verified Carbon Standard Project 318 - The Clinton Landfill Gas Collection and Combustion Project consists of the collection and destruction of LFG from Clinton Landfill #2 in Clinton, Illinois. The Project includes a landfill gas collection system which conveys LFG to two power generation engines or an open candlestick flare. Emission reductions are achieved by the Project through the collection and combustion of methane in the flares and engines. Methane has more than 80 times the climate warming impacts over carbon dioxide. The Project avoids GHG emissions by reducing the quantity of methane released to the atmosphere from the decomposition of waste in the closed landfill. In the absence of the Project, the majority of methane collected would have been vented to the atmosphere.
•  AkzoNobel Marine Coatings Efficiency (1,353 credits purchased on or around 2/10/2020), GS Advanced Hull Coatings v2 methodology, ICVCM assessment status: Method not included[1], Gold Standard Project 2767 - AkzoNobel’s Marine Coatings business has worked with The Gold Standard Foundation to create the first approved carbon credit methodology in the marine industry. The methodology is unique in that it is the only approved carbon credit generating methodology for moving articles (i.e. ships) which are not geographically bound (all other projects have strict territorial boundaries). Use of AkzoNobel’s Marine Coatings increases operational efficiencies by up to 10% on average, resulting in avoided GHG emissions during shipping operations.
• Cedar Grove Composting Maple Valley (1,293 credits purchased on or around 2/10/2020), Climate Action Reserve (Reserve) Organic Waste Composting Project Protocol Version 1.1 methodology, ICVCM assessment status: Method not included, Climate Action Reserve Project 866 - Located in Everett, WA, this project avoids GHG emissions through diversion of one or more eligible organic residuals, including residential and commercial food waste, to an aerobic composting facility. Operated by Cedar Grove Composting, this facility complies with Best Management Practices that ensure the composting process is operated under optimal conditions. Using GORE Cover System and ASP Negative Aeration technology, this project encompasses organic residual handling, pre-processing and aerobic composting.