Despite the current presidential administration leading a federal reversal on the nation’s climate policy, California is doubling down on its climate risk and emissions disclosure requirements for large companies doing business in the state.
Over 3,100 companies are subject to the state’s climate disclosure laws, according to a preliminary list published by the California Air Resources Board last month, with some expected to report beginning in 2026.
California Gov. Gavin Newsom signed the Climate Corporate Data Accountability Act, Senate Bill 253, and the Climate-Related Financial Risk Act, Senate Bill 261, into law in October 2023, which will require companies with over $1 billion in revenue to report their emissions and companies with over $500 million in revenue to report on climate-related financial risks, respectively. Last year, Newsom green-lit the laws by signing an amendment that also gave CARB additional time and flexibility to implement them.
However, one thing that has remained unchanged since the bills’ passage are their 2026 reporting deadlines. That was recently reinforced, when a federal judge denied a preliminary injunction request from the U.S. Chamber of Commerce and other industry groups seeking a reprieve from the coming deadlines.
CARB said it will not take enforcement action during the first year of disclosure, to encourage companies to make “a good faith effort,” and recently released a list of companies it expects to be scoped into compliance. The agency tasked with enforcing the state’s climate rules also released a pair of FAQ documents and held public workshops this year as it developed the final regulations for SBs 253 and 261, which are expected to be released Oct. 14.
Catch up on ESG Dive’s coverage of the bills’ passage, developments, challenges, deadlines and expert insights here.
