Emissions Registry and Climate Disclosures Ahead for California Companies
On October 7, 2023, California Governor Gavin Newsom signed into law two statutes that will require certain companies doing business in California to disclose their GHG emissions (SB 253) and climate-related financial risk (SB 261). These statutes apply regardless of whether a company is incorporated or headquartered in California.
- Starting in 2026 and annually thereafter, SB 253 requires companies with annual revenue of over US$1 billion to publicly report their Scope 1 and Scope 2 GHG emissions to an emissions registry in accordance with the GHG Protocol. Scope 3 emissions disclosure will be required starting in 2027 for the prior fiscal year.
- Starting in 2026 and biennially thereafter, SB 261 requires companies with annual revenue of over US$500 million to publish a climate-related financial risk report in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
Companies that expect to be impacted are taking steps to review existing voluntary GHG and climate risk disclosures for alignment or gaps with California’s requirements, are developing reporting…
