SB 253 and SB 261 are California’s corporate climate disclosure laws. SB 253, the Climate Corporate Data Accountability Act, requires U.S. companies with more than $1 billion in annual revenue that do business in California to report their greenhouse gas emissions. SB 261 requires companies above $500 million in revenue to disclose climate-related financial risk.
Why It Matters for Manufacturers
The revenue thresholds capture large manufacturers regardless of where they are headquartered, because “doing business in California” is a low bar to clear.
First-year SB 253 reports cover Scope 1 and 2 emissions for fiscal 2025, with Scope 3 reporting beginning in 2027. Scope 3 is where most manufacturers’ emissions actually sit, and where supplier data collection takes the longest to stand up. Reported emissions are subject to third-party assurance requirements that phase in, so the underlying data has to withstand verification, not just submission.
U.S. and EU Applicability
These are U.S. state laws with national reach; no EU nexus is required. Manufacturers already reporting under CSRD or preparing IFRS S2 disclosures can feed California reporting from the same GHG Protocol-aligned inventory, since SB 253 requires reporting in conformance with the Protocol.
Current Status
Last updated: July 2026
- On June 24, 2026, CARB announced it is deferring the first SB 253 reporting deadline for Scope 1 and 2 emissions from Aug. 10 to Nov. 10, 2026. The Nov. 10, 2026, deadline stands. CARB’s regulation is still pending approval from California’s Office of Administrative Law.
- SB 253 remains in effect. The Ninth Circuit declined to enjoin it while the constitutional challenge proceeds.
- SB 261 is under a Ninth Circuit preliminary injunction issued Nov. 18, 2025, and is not currently enforceable. Oral argument was heard Jan. 9, 2026; no ruling has been issued. More than 170 companies have voluntarily submitted climate-risk reports despite the injunction.
- Scope 3 reporting under SB 253 remains scheduled to begin in 2027, with a safe harbor for good-faith misstatements.