Do you represent one of the 10,000 companies in the U.S. doing business in California that will be affected by sweeping new climate-related disclosure requirements recently signed into law?
California requirements for public disclosures cover corporate climate-related financial risk (SB 261) and corporate GHG emissions/targets (SB 253). While these state climate disclosure laws are subject to court challenges, they are still in effect, so companies are collecting data now.
If you reply yes to the questions below, you must report your company’s Climate Disclosure starting in 2026.
This live educational webinar will highlight these new disclosure requirements for climate disclosures, apply the standards, and provide the related assurance requirements for each. This one-hour webinar is free and relevant to all industries. Meet our panelists.
Our panelists will explain the carbon accounting expectations, materiality considerations, and what to do now to prepare. We’ll provide an update on the net impact of timely court decisions affecting California requirements, as well as the impact of similar disclosure requirements under the CSRD rules of the European Union. It’s free with a Q&A forum, it’s non-commercial, and we respect your privacy!
Start or refine your roadmap for the journey to mandatory reporting and reflect upon the relationship of these disclosures to U.S. firms remaining globally competitive.
Free Resources Include:
The California Air Resources Board (CARB) is to develop regulations for Senate Bill 253 (SB 253), the Climate Corporate Data Accountability Act in 2025. The new law requires public and private businesses doing business in California with total annual revenues over $1 billion to disclose their Scope 1 and 2 greenhouse gas (GHG) emissions starting in 2026. Disclosure of their Scope 3 emissions is starting in 2027.
SB 253 Timelines and Potential Penalties
Scope Definitions
Scope 1 emissions result directly from a company’s activities from sources that the company owns or controls, such as vehicles, boilers, and equipment. An independent third party must guarantee these disclosures.
Scope 2 emissions result indirectly, such as those associated with purchasing electricity, steam, heat, or cooling used by the company. An independent third party must guarantee these disclosures.
Scope 3 includes all indirect emissions from a company’s entire supply chain. Scope 3 reporting is due in 2027 based on 2026 data. Scope 3 emissions may require assurance as well.
As well as GHG emissions disclosures, SB 261, the Climate Related Financial Risk Act, requires public and private companies (annual revenues over $500M) doing business in California to prepare and publish climate-related financial risk assessments biennially. These climate risk assessments are to be consistent with recommendations from the Task Force on Climate-Related Financial Disclosure (TCFD) framework, or their successor, the International Financial Reporting Standards. Companies are to publish the reports on their company’s website.
Doing Business in California Definition
The state Franchise Tax Board considers a company to be “doing business” if it meets any of the following criteria:
| CA sales exceed (either the threshold amount or 25% of total sales) | CA real and tangible personal property exceed (either the threshold amount or 25% of total property) | CA payroll compensation exceeds (either the threshold amount or 25% of total payroll) |
| $735,019 | $73,502 | $73,502 |
Educational Resources
There are multiple resources available to help. You’ll find law firms, environmental consultants, and GHG verification service firms among them. The most efficient data collection and reporting is from combining all three because each brings value to your plan and may help provide operational efficiencies as part of the process.
Free Resources Include:
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