| Two disclosure laws passed in California have changed the landscape of climate-related reporting. As the California Air Resources Board stated in guidance from September of this year, SB 261: “applies to U.S. companies that do business in California with annual revenues in excess of $500 million. Beginning with the initial SB 261 report due on January 1, 2026, these reporting entities must biennially prepare and publicly disclose a report on their climate-related financial risk and the measures adopted to reduce and adapt to climate-related financial risk”. SB 253 similarly requires companies doing business in California and which have revenues over one billion to disclose their scope 1-3 emissions, which involves a process where you define your organizational and value chain boundaries and measure emission sources. In August, CARB proposed a reporting deadline of June 30, 2026 for scope 1 and scope 2, in addition to outlining proposals for the fee structure details and emissions assurance. In late September, CARB released their list of 4.000+ companies who are potentially subject to one or both of the laws. Questions that you should be able to answer: Is your company on the list? Are you fully ready to comply and able to disclose? To better understand how your company can come into compliance, contact us through our site! We look forward to your questions. |
SB 253 and 261 – CA Compliance Draws Near!
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