California Air Resources Board Approves Proposed Corporate Climate Disclosure Regulation - Ropes & Gray LLP
California Air Resources Board (CARB) approved proposed regulations under SB 253 and SB 261, mandating climate disclosure for companies doing business in California. This includes scope 1, 2, and 3 emissions reporting and assurance requirements.
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 companies (revenue >$1B) doing business in California, and EU-market exporters subject to CSRD should confirm how it applies to their specific situation before acting. There is a time constraint attached: SB 253: Reporting starts 2026 for 2025 data; SB 261: Biennial reporting starting 2026. Final rule expected late 2024.. 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
CARB approved proposed rules for SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act), requiring GHG emissions reporting and climate risk disclosure with assurance.
Who it affects
Public companies, large private companies (revenue >$1B) doing business in California, and EU-market exporters subject to CSRD
What you must do
Begin preparing GHG inventories (scope 1, 2, 3) and climate risk assessments; engage assurance providers; review current disclosure practices against proposed requirements.
Deadline
SB 253: Reporting starts 2026 for 2025 data; SB 261: Biennial reporting starting 2026. Final rule expected late 2024.
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Start your free trialRelated changes in ESG & Climate Disclosure
- Climate Disclosure Update: Six Weeks to Go Before California’s First GHG Emissions Reporting Deadline Approaches - JD Supra
- California Pushes Back Deadline for First Corporate Climate Reports to November - ESG Today
- Datamaran Launches New Tools to Support CSRD, ISSB Compliance, Governance - ESG Today
- California Sets August 2026 Deadline for First Corporate Climate Reports - ESG Today
- California Climate Disclosure Rules, ESG Compliance and Scope 3 Reporting Risks [Podcast] - The National Law Review