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"California climate disclosure laws: What companies need to know"

Use this guide to turn compliance into credibility and get ahead of evolving CARB rules.

California has enacted the most comprehensive corporate climate disclosure rules in the U.S.—SB 253 and SB 261—affecting thousands of companies starting in 2026. This guide distills who’s in scope, what to file, and how to get audit‑ready.

This guide covers:

• Who must comply: US‑formed entities “doing business in CA” with >$1B global revenue (SB 253) or >$500M (SB 261); limited exemptions. Assess scope now, regardless of CARB’s list.
• What to report (SB 253): Annual scopes 1–2 due June 30, 2026 (2025 data); scope 3 in 2027 (2026 data). Measure per GHG Protocol. Publicly post and lodge a URL in CARB’s docket (Dec 1, 2025–July 1, 2026).
• Climate‑risk report (SB 261): Biennial report from Jan 1, 2026 aligned to TCFD/ISSB (or equivalent). “Comply‑or‑explain” allowed for initial gaps across governance, strategy, risk, and metrics/targets.
• Assurance, fees, penalties: Scopes 1–2 limited assurance 2026–2029, reasonable in 2030; scope 3 assurance earliest 2030 if mandated. Proposed annual fees apply. Penalty caps: SB 253 up to $500k; SB 261 up to $50k. First‑year SB 253 safe harbor for good‑faith efforts.

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