SB 261 and Climate Risk Reporting
Updated:
May 1, 2025
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Overview
Start Where You Are: Qualitative Narrative is Acceptable
Companies new to climate risk reporting can start with qualitative narratives and gradually move toward more quantitative and scenario-based disclosures over time. Perfection is not expected upfront.
Integrate Climate Risk into Existing Business Risk Frameworks
Leverage existing governance and enterprise risk management processes to identify and manage climate-related risks. This includes both physical and transition risks.
Consider Using ISSB to Future-Proof Your Disclosure
SB 261 allows for ISSB-aligned reporting to meet requirements. Consider adopting this globally recognized standard to streamline disclosures across jurisdictions and align with investor expectations.
