California Takes Next Step in Corporate GHG Emissions Reporting Rulemaking - Ropes & Gray LLP
California advances rulemaking for SB 253 and SB 261, requiring corporate GHG emissions reporting and climate-related financial risk disclosure. This affects companies doing business in California, including many private firms and public companies, with potential overlap with SEC and EU rules.
Aforeworn detected this change in the ESG & Climate Disclosure space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Public companies, large private filers, sustainability consultants, EU-market exporters should confirm how it applies to their specific situation before acting. There is a time constraint attached: SB 253: Reporting starts in 2026 for 2025 data; SB 261: First report due by January 1, 2026. Rulemaking deadlines are imminent.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors ESG & Climate Disclosure continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
California's Air Resources Board (CARB) is moving forward with implementing SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act), which mandate GHG emissions reporting (including Scope 3) and climate risk disclosure for companies with annual revenues over $1 billion (SB 253) or $500 million (SB 261) that operate in California.
Who it affects
Public companies, large private filers, sustainability consultants, EU-market exporters
What you must do
Determine if your company meets the revenue thresholds and does business in California. Begin collecting GHG emissions data (Scope 1, 2, and 3) and assessing climate-related financial risks. Prepare for assurance requirements.
Deadline
SB 253: Reporting starts in 2026 for 2025 data; SB 261: First report due by January 1, 2026. Rulemaking deadlines are imminent.
Never miss a change like this again
Aforeworn watches ESG & Climate Disclosure around the clock and alerts you the moment a rule moves — with a plain-English brief on what to do.
Start your free trialRelated changes in ESG & Climate Disclosure
- Federal Judge Blocks Indiana Proxy Disclosure Law, Grants Win to ISS and Glass Lewis - Межа. Новини України.
- Florida Anti-Net Zero Law Takes Effect July 1 - CleanTechnica
- Federal judge blocks new Kansas woke investing law from taking effect - The Topeka Capital-Journal
- California Amends Cap-and-Invest Program Reducing Cap on Utilities and Other Large Sources of GHG Emissions - Morgan Lewis
- Washington, California and Québec sign carbon market agreement, setting the stage for historic climate partnership - Governor Bob Ferguson (.gov)