Overview of California Climate Disclosure Laws SB 253 and 261
Updated:
May 1, 2025
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Overview
Determine Applicability Based on Revenue and Operations
Assess whether your company meets the SB 253 ($1B+) or SB 261 ($500M+) revenue thresholds and whether you are a US company “doing business” in California. Even minimal activity in the state (e.g. $690K+ in sales, $69K in payroll/property) may qualify.
Start Planning Now for GHG Protocol-Aligned Reporting
Prepare to disclose Scope 1 and 2 emissions by 2026 and Scope 3 by 2027, following the GHG Protocol. These disclosures will require third-party assurance starting with limited assurance and progressing to reasonable assurance by 2030.
Use TCFD and ISSB Frameworks to Prepare for Climate Risk Disclosures
Begin aligning climate risk reporting to TCFD’s 4 pillars and 11 recommendations (or ISSB’s standards for global compatibility), as required under SB 261 with biennial reports starting in 2026.
