California, October 17, 2025
News Summary
California has delayed the finalization of its climate disclosure regulations linked to SB 253 and SB 261 until early 2026 due to extensive public feedback. While the deadlines for companies to comply remain unchanged, the California Air Resources Board (CARB) has introduced a draft reporting template to assist first-time reporters. The regulations are anticipated to serve as a national benchmark for corporate climate reporting, amidst ongoing legal challenges regarding their implementation.
California has pushed back the finalization of climate disclosure regulations related to SB 253 and SB 261 until the first quarter of 2026. This decision comes as a result of a significant volume of public feedback and the necessity for more technical discussions about the companies that will need to comply with these mandates. Initially, these regulations were expected to be finalized by fall 2025.
Despite the extension in the issuance of final regulations, the compliance deadlines for companies remain unchanged. Under SB 261, companies are required to submit climate-related risk reports by January 1, 2026. Meanwhile, firms governed by SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026.
The California Air Resources Board (CARB) has also released a draft reporting template aimed at simplifying the reporting process, especially for first-time reporters. The use of this template is voluntary for the upcoming 2026 reporting cycle. Currently, CARB is inviting public input on this draft until October 27, 2025.
A preliminary list has been made available, featuring over 3,100 companies, including electric utilities, energy firms, and manufacturers. Notable entities on this list comprise Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy. However, all listed companies are accountable for compliance regardless of their appearance on the preliminary list.
SB 253 targets companies operating in California with annual revenues surpassing $1 billion, requiring them to disclose both Scope 1 and 2 emissions as well as Scope 3 emissions related to their supply chains, business travel, and other applicable areas. SB 261, on the other hand, is directed at companies with revenues exceeding $500 million, mandating the disclosure of climate-related financial risks.
CARB has highlighted the need for ensuring that the framework adequately includes all covered entities and plans to refine the initial proposal accordingly. While these regulations are still under development, California’s climate disclosure mandates are expected to influence corporate climate-related reporting on a national scale.
Legal challenges have already been initiated against CARB concerning SB 253 and SB 261, reflecting ongoing debates surrounding the implementation of these regulations. Stakeholders are being encouraged to participate in CARB’s voluntary survey to provide feedback on potential covered entities and exemptions.
Moving forward, CARB has committed to accelerating the publication of draft regulations by October 14, 2025, after completing a public comment period that concludes in December 2025.
Key Compliance Dates for Companies
- SB 261: Climate-related risk reports due by January 1, 2026.
- SB 253: Scope 1 and 2 emissions reports due by June 30, 2026.
Company Reporting Requirements Overview
| Bill | Target Companies | Disclosure Requirements |
|---|---|---|
| SB 253 | Companies with annual revenues over $1 billion | Scope 1, 2, and 3 emissions |
| SB 261 | Companies with revenues over $500 million | Climate-related financial risks |
Current Status
California’s climate disclosure regulations are poised to become a significant benchmark for corporate climate-related reporting nationwide, while public and legal challenges continue to shape their evolution.
FAQ
What is the new timeline for California’s climate disclosure regulations?
The finalization of climate disclosure regulations for SB 253 and SB 261 has been delayed until the first quarter of 2026.
What are the compliance deadlines for companies?
Companies under SB 261 must submit climate-related risk reports by January 1, 2026, and those under SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026.
What is the purpose of the draft reporting template released by CARB?
The draft reporting template is designed to streamline the reporting process for first-time reporters; its use is voluntary for the 2026 reporting cycle.
Which companies are targeted by SB 253 and SB 261?
SB 253 applies to companies operating in California with annual revenues over $1 billion, while SB 261 targets companies with revenues over $500 million.
How many companies are included in the preliminary list for compliance?
A preliminary list of over 3,100 companies has been published, which includes electric utilities, energy companies, and manufacturers.
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Climate Regulations
- Crowell: CARB Issues Preliminary List for Climate Disclosure
- Mayer Brown: Countdown to California Climate Disclosure
- Wikipedia: Climate Change in California
- Google Search: California Climate Disclosure Laws
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