California’s Climate Disclosure Laws (SB253 and SB261)

When Governor Gavin Newsom officially signed the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) into law in October 2023, California became the first state in the nation to require entities to disclose their greenhouse gas emissions and climate-related risks. With the passage of these laws, California jumped ahead of federal reporting requirements, as the proposed SEC rule on climate-related disclosures has not yet been finalized and its implementation timeline is uncertain.

Beginning in 2026, entities “doing business” in California that meet each law’s respective revenue threshold will need to publicly disclose their Scope 1 and 2 emissions with a limited level of assurance and report on their climate-related financial risks through a Task Force on Climate-related Financial Disclosure report. California also ensured that Scope 3 emissions will not be left overlooked by requiring companies to begin reporting emissions from Scope 3 sources in 2027.

To guide your organization in preparing for disclosures under SB253 and SB261, G&A Institute developed this Resource Paper, which outlines concrete steps your organization can take to be ready for reporting in 2026.

Want to read the rest of the research?

Related

California’s Climate Disclosure Laws (SB253 and SB261)

Build your sustainability strategy.

Founded in 2006, Governance & Accountability Institute (G&A) is a New York–based sustainability consulting and research firm advising corporate leaders and investors at the intersection of strategy, governance, and regulation. For two decades, we have partnered with executive teams and boards to translate sustainability strategy into durable enterprise value — helping organizations navigate shifting market expectations, evolving policy landscapes, and increasing capital markets scrutiny. Set up a call to learn more about how we can help your company.

G&A Institute

Founded in 2006, Governance & Accountability Institute (G&A) is a New York–based sustainability consulting and research firm advising corporate leaders and investors at the intersection of strategy, governance, and regulation. For nearly two decades, we have partnered with executive teams and boards to translate sustainability strategy into durable enterprise value — helping organizations navigate shifting market expectations, evolving policy landscapes, and increasing capital markets scrutiny.