Understanding SB 253 & SB 261: What every company needs to know
California’s Climate Accountability Package (SB 253, SB 261, and AB 1305) marks the beginning of mandatory corporate climate disclosure in the United States. This briefing note provides a clear, structured analysis of the laws that make up this framework:
- SB 253 – Climate Corporate Data Accountability Act: Mandatory reporting of Scope 1, 2, and 3 emissions for companies with over $1 billion in global revenue.
- SB 261 – Climate-Related Financial Risk Act: Biennial disclosure of climate-related financial risks for companies earning $500 million or more worldwide.
- AB 1305 – Voluntary Carbon Markets Disclosure Act: New transparency obligations for organizations making carbon-neutral or net-zero claims.
It also explains:
- Who’s in scope and how “doing business in California” is interpreted
- Current timelines and what’s unchanged following SB 219
Pending definitions and rulemaking under the California Air Resources Board (CARB) - The role of “good-faith” compliance during the first reporting cycles
- Recent litigation and political developments are shaping the path forward
Grounded in current regulatory updates and expert analysis, this briefing note equips sustainability teams and other change agents with a thorough understanding of California’s evolving disclosure landscape—helping them anticipate obligations and prepare strategically.
Why it matters
With deadlines approaching in 2026, early preparation is critical. Companies operating or selling into California will be expected to disclose accurate, verifiable emissions and climate-risk data — setting a new benchmark for climate accountability across the U.S.
Download the briefing note and get ahead of California’s new climate disclosure rules.
