Are You Ready for California’s New Climate Disclosure Laws?

California’s climate regulations are reshaping corporate reporting. If your organization operates in California or serves clients there, you may be impacted by two major laws: SB 261 and SB 253. These regulations will require thousands of companies to begin public reporting on climate-related risks and greenhouse gas emissions starting in 2026.

SB 261 – Climate-Related Financial Risk Act

Applies to organizations with $500M+ annual revenue. Requires disclosure of climate-related financial risks and mitigation measures, aligned with frameworks like TCFD and IFRS S2. Reports must be public and submitted through the CARB portal by January 1, 2026.

SB 253 – Climate Corporate Data Accountability Act

Applies to organizations with $1B+ annual revenue. Requires annual reporting of Scopes 1, 2, and 3 emissions using the GHG Protocol, with third-party assurance for Scopes 1 and 2 in 2026 and Scope 3 in 2027.

To help organizations save time and avoid costly missteps, Delphi and our partners at Arbor have created two practical tools:

• Delphi’s SB 261 Compliance Checklist – assess your exposure, gaps in mandatory compliance requirements, and steps needed to prepare climate risk reports.
• Arbor’s SB 253 Compliance Checklist – assess major data requirements, typical implementation timelines, and internal commitments needed.

These resources are designed to complement CARB’s guidance and help you understand what actions to take. Whether you’re preparing for SB 261, SB 253, or both, our checklists are a practical starting point.