Prepare for California climate disclosures.

What are California's climate disclosure rules?

Introducing SB 253 & SB 261

California's SB 253 & SB 261 require U.S. companies doing business in California to report greenhouse gas emissions and climate-related financial risks. The first SB 253 emissions reports are due November 10, 2026.

SB 261's climate risk reporting is currently paused. A federal appeals court enjoined the law in November 2025, and CARB is not enforcing its January 1, 2026 deadline while the case is decided. SB 253 remains in force.

Who needs to disclose?

SB 253 & SB 261 apply to approximately 10,000 companies across the United States that do business in California.

In September 2025, the California Air Resources Board (CARB) published a preliminary list of companies it believes need to comply. The list is not exhaustive, and CARB says it is not a definitive determination. Companies should review the reporting criteria themselves to determine whether they need to disclose, even if they are not on the list.

Penalties for noncompliance

SB 253 & SB 261 authorize the California Air Resources Board (CARB) to seek civil penalties of up to $500,000 per reporting year for emissions violations and up to $50,000 per year for climate risk violations.

First-year relief is generous: for 2026 reports, companies may submit the Scope 1 and 2 data they already had as of December 5, 2024, and CARB has said it will apply enforcement discretion for good-faith submissions. Failure to comply in later years carries the risk of hefty fines.