California's Climate Disclosure Laws
SB 253 & SB 261 Compliance Made Simple with Clearyst°
Take the complexity out of SB 253 and SB 261 reporting with software and expert advisory. Measure emissions, assess climate risk, and disclose with confidence.
SB 253: Climate Corporate Data Accountability Act
California's SB 253 and SB 261 are groundbreaking climate disclosure laws reshaping how businesses approach emissions, risk, and transparency. SB 253 mandates that large U.S. companies operating in California publicly report their GHG emissions across Scope 1, 2, and 3.
Who It Impacts
- Public and private entities
- Doing business in California
- $1B+ annual revenue threshold
Reporting Requirements
- Annual disclosure of Scope 1, 2, and 3 emissions data aligned with GHG Protocol standards
- Starting 2026: Scope 1 and 2 disclosures require limited assurance; upgrades to reasonable assurance in 2030
- 2030 onwards: Scope 3 also requires limited assurance
Timeline
- August 10, 2026: Scope 1 and 2 emissions reporting (using 2025 data)
- 2027: Scope 3 emissions included (using 2026 data)
- 2030: Scope 1 and 2 upgrade to reasonable assurance; Scope 3 requires limited assurance
Fees
- Estimated $2,000-$7,000 per in-scope entity
- Additional administrative fees: $3,106 annually to cover program implementation
SB 261: Climate-Related Financial Risk Disclosure Act
SB 261 requires businesses doing business in California to disclose climate-related financial risks in a biennial report. Enforcement is currently paused while CARB operates a voluntary reporting docket.
Who It Impacts
- Public and private entities
- Doing business in California
- $500M+ annual revenue threshold
Reporting Requirements
- Biennial climate-related financial risk reports aligned with TCFD or ISSB frameworks
- Explanation of measures taken to address and adapt to identified risks
- Scope 1, 2, and 3 emissions reporting is not required for the initial 2026 report, avoiding duplication with SB 253
Timeline
- 2026: Voluntary reporting open through July 1, 2026 (enforcement currently paused)
- 2028 and beyond: Biennial updates thereafter
Fees
- Estimated $2,000-$7,000 per in-scope entity
- Administrative fees: $1,403 annually
The Three Scopes of Emissions Under SB 253
SB 253 requires large corporations to disclose their GHG emissions publicly across three scopes, phased in from 2026 through 2030.
Scope 1
Direct emissions from owned or controlled sources, such as on-site fuel combustion and company vehicles.
Scope 2
Indirect emissions from purchased electricity, steam, heating, and cooling used across your operations.
Scope 3
All other indirect emissions across your value chain, including supply chain and product lifecycle emissions.
The Clearyst° Process
Clearyst° specializes in simplifying compliance with complex environmental regulations like SB 253 and SB 261. Our services help your business meet these requirements and improve sustainability performance.
GHG Emissions Measurement
Collect, organize, and report audit-ready data across Scope 1, 2, and 3 emissions with Clearyst° and verified platform partners.
Climate Risk Assessment
Identify climate-related financial risks, establish corporate governance structures, and develop compliant SB 261 disclosure reports.
Assurance
Ensure reports meet regulatory standards and pass third-party assurance requirements.
Ongoing Support & Improvement
Stay aligned with evolving regulations through continuous expert guidance and the latest regulatory updates.
Sustainability Strategy Development
Transcend bare compliance. Develop sustainability policies aligned with broader business objectives, leverage data for additional reporting frameworks, and drive performance improvements.
Why Choose Clearyst°
Expertise You Can Trust
The Clearyst° team comprises sustainability and compliance specialists with a proven track record navigating complex regulatory environments.
End-to-End Solutions
Comprehensive service delivery spanning data collection, reporting preparation, assurance coordination, and strategic sustainability planning.
Future-Focused
Beyond regulatory adherence, Clearyst° helps organizations lead in sustainability, building resilience and stakeholder confidence.
Frequently Asked Questions
How do I know if SB 253 and SB 261 apply to my company?
SB 253 applies if your company conducts business in California and generates $1B+ revenue. SB 261 applies with a $500M+ revenue threshold and California business operations.
What does "doing business in California" actually mean?
Manufacturers, importers, and brand owners producing or selling products generating waste, including packaging, that operate within the state.
What emissions must be reported under SB 253?
Companies must disclose three GHG Protocol scopes: Scope 1 (direct owned-source emissions), Scope 2 (indirect purchased electricity/energy emissions), and Scope 3 (all other value-chain indirect emissions), phased in from 2026 through 2030.
When are the reporting deadlines for SB 253 and SB 261?
SB 253 Scope 1-2 reports are due August 10, 2026 (fiscal year 2025 data); Scope 3 begins 2027. SB 261 enforcement is paused; the first climate risk report was initially due January 1, 2026, with biennial updates thereafter.
What are the penalties for non-compliance?
SB 253 carries penalties up to $500,000 annually for non-compliance or insufficient reporting. SB 261 penalties reach $50,000 per reporting year, plus administrative fees.
What does the "good faith" safe harbor mean?
This SB 253 provision protects companies from penalties for Scope 3 emissions reporting misstatements, provided disclosures are made on a reasonable basis and in good faith, acknowledging supply chain data collection complexity.
What must be included in an SB 261 climate risk report?
Reports must align with TCFD, IFRS S2 (ISSB), or another regulated framework, addressing four pillars: governance, strategy, risk management, and metrics/targets.
Do subsidiaries need to file separately?
Subsidiaries may report at the parent company level for compliance. However, administrative fees apply per separate legal entity meeting California "doing business" criteria, so corporate families may face multiple fee obligations despite consolidated reporting.
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Navigating SB 253 and SB 261 need not feel overwhelming. Clearyst° provides compliance achievement, environmental impact reduction, and positions sustainability as a strategic business advantage.