The US state of California has passed two landmark bills that will have implications on thousands of companies. These are California SB 253 and California SB 261. Senate Bill No. 253, or the “Climate Corporate Data Accountability Act” which can be found here, and Senate Bill No. 261 , or “Greenhouse gases: climate-related financial risk” which can be found here. These bills are among the first in a paradigm shift from a voluntary climate-related reporting landscape to a mandatory one. Impacted companies will be required to report their Scope 1, 2, and 3 greenhouse gas emissions and their climate-related financial risks. We’ve created this quick guide with the key points highlighted from the legislation.
California SB 253, Climate Corporate Data Accountability Act (CCDAA)
Who does SB 253 affect?
Any entity with total annual revenues exceeding $1 billion that does business in California must report emissions under SB 253.
What does SB 253 Require?
Disclosure of Scope 1, 2, and 3 greenhouse emissions, as defined by the Greenhouse Gas Protocol standards.
When does SB 253 come into effect?
Scope 1 & 2 Emissions disclosures are due in 2026. However, Scope 3 Emissions disclosures are due in 2027.
Where do I report in order to comply with SB 253?
You must post emissions reports publicly on your website.
What are the penalties for non-compliance?
As a result of noncompliance, authorities can fine you up to $50,000.
California SB 261, Greenhouse gases: climate-related financial risk (CRFRA)
Who does SB 261 affect?
Any entity with total annual revenues exceeding $500 million that does business in California must report emissions under SB 261.
What does SB 261 Require?
A climate-related financial risk report in line with the Task Force on Climate-Related Financial Disclosure (TCFD).
When does SB 261 come into effect?
The first report is due by January 1, 2026, and each subsequent report is due biennially.
Where do I report in order to comply with SB 261?
You must report climate-related financial risk reports publicly on your website.
What are the penalties for non-compliance?
As a result of noncompliance, authorities can fine you up to $50,000.
CarbonSuite Compliance Checklist
CarbonSuite can help you with disclosure each step of the way. Get in touch with us to begin!
For a full list of climate-related closure requirements, see our Climate Disclosure Tracker.
California Compliance Checklist V2
