New California Climate-Related Disclosure Mandates Will Require Corporate Reporting Ahead of - and Broader than - the SEC | Thought Leadership | September 2023 - Baker Botts
California has enacted new climate disclosure laws (SB 253 and SB 261) that will require companies doing business in California to report greenhouse gas emissions and climate-related financial risks, with requirements broader and earlier than the SEC's proposed rule.
Aforeworn detected this change in the ESG & Climate Disclosure space on August 17, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Public and large private companies doing business in California, including those with operations, employees, or sales in the state, as well as sustainability consultants and EU-market exporters. should confirm how it applies to their specific situation before acting. There is a time constraint attached: SB 253: first report due in 2026 for fiscal year 2025; SB 261: first report due by January 1, 2026. (Exact dates may vary; confirm with official text.). 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
New California laws (SB 253 and SB 261) mandate annual disclosure of Scope 1, 2, and 3 greenhouse gas emissions and climate-related financial risks, with reporting starting as early as 2026 for emissions and 2026 for risk disclosures, and assurance requirements phased in.
Who it affects
Public and large private companies doing business in California, including those with operations, employees, or sales in the state, as well as sustainability consultants and EU-market exporters.
What you must do
Assess applicability based on revenue thresholds (SB 253: >$1B total annual revenues; SB 261: >$500M total annual revenues) and begin preparing GHG inventory and climate risk assessment processes.
Deadline
SB 253: first report due in 2026 for fiscal year 2025; SB 261: first report due by January 1, 2026. (Exact dates may vary; confirm with official text.)
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