AB 1305 and How to Choose a Sustainable Adtech Partner

By Joseph Worswick in Responsibility, Sustainability|September 26, 2024

As the environmental impact of technology and media faces greater scrutiny, the digital advertising industry is taking a collective look in the mirror. With growing consumer demand for transparency and corporate responsibility, companies now have a significant opportunity to demonstrate they are genuinely committed to sustainability — not just paying lip service to it. 

Enter AB 1305, a bill that mandates carbon emissions reporting. Rather than viewing these regulations as burdens, adtech companies can lead by example, demonstrate genuine sustainable practices, and distinguish themselves from competitors who are engaging in greenwashing.

What is AB 1305?

The Voluntary Carbon Market Disclosures Act (VCMDA), also known as AB 1305, is legislation designed to address the increasing need for transparency and accountability in environmental sustainability practices. To ensure that companies are accurately reporting and managing their carbon emissions, AB 1305 mandates stringent standards for carbon offset reporting and sustainability claims. 

AB 1305 requires all companies operating within the state of California to publicly disclose their carbon offset purchases and verify any Net-Zero claims through third-party audits. This legislation applies to all companies that do business within its jurisdiction, even if their operations are minimal. Consequently, AB 1305 impacts businesses beyond California’s borders, including those operating internationally.

This move is a significant step in combating greenwashing, where companies falsely claim to be lowering their emissions without substantiating their claims with concrete, verified data.

OpenX’s commitment to sustainability

Today, OpenX is at the forefront of sustainable practices after becoming the first and only company in the advertising, technology, and media sectors to receive independent verification for meeting the Net-Zero Standard requirements established by the Science Based Targets initiative (SBTi). Before then, we became the first supply-side platform to be independently certified as CarbonNeutral® in May 2022 by Climate Impact Partners. As a result, campaigns run through OpenX use 39 fewer grams of emissions per every 1,000 impressions.

Rather than making opaque assumptions or using black box models to make unverified claims, OpenX has set the standard for the industry by following international science-based standards and seeking out third-party verification of our greenhouse gas (GHG) inventories and the environmental claims we make. This rigorous approach ensures that all of our partners and stakeholders can have complete trust in our emissions reporting. 

However, not all companies are this transparent, and the surge in sustainability claims has made it increasingly difficult to distinguish between those genuinely committed to reducing their environmental impact and those engaging in greenwashing.

How to choose the right sustainability partner

Many companies talk a good game, but how many back up their words with real, measurable action? As sustainability becomes a competitive differentiator, it’s crucial to understand what true accountability looks like.

But how can you differentiate true sustainability from clever marketing? What questions should you be asking potential partners to ensure their environmental claims are genuine? How do you spot greenwashing tactics that obscure the real impact of their operations? Choosing the right adtech partner means looking beyond the buzzwords and carefully scrutinizing the practices that back up their promises.

To help you navigate this complex landscape, download our sustainable partner checklist. This guide will arm you with the right questions to ask and key indicators of authentic sustainability, so you can confidently choose partners who are committed to making a positive impact.

Ab 1305 Checklist guide


About OpenX

OpenX is an independent omni-channel supply-side platform (SSP) and a global leader in supply-side curation, transparency, and sustainability. Through its 100% cloud-based tech stack, OpenX powers advertising across CTV, app, mobile web, and desktop, enabling publishers to deliver marketers with improved performance and dynamic future-proofed solutions. With a 17-year track record of programmatic innovation, OpenX is a direct and trusted partner of the world’s largest publishers, working with more than 130,000 premium publisher domains and over 100,000 advertisers. As the market leader in sustainability, OpenX was the first adtech company to be certified as CarbonNeutral™ and third-party verified for achieving its SBTi Net-Zero targets. Learn more at www.openx.com.