The new standard in corporate climate disclosure has arrived.
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The New Standard in Corporate
Climate Disclosure Has Arrived
 

California's newly signed Climate Accountability Package requires large public and private companies doing business in California to publicly report their greenhouse gas emissions, as well as climate-related financial risk information and mitigation plans. Businesses that do not meet compliance by established deadlines risk penalties of up to $500,000.

 

Not sure if your business is ready? Read on for a quick overview of the legislation and some action items. You can find more details on our website.

 

This set of bills, signed by Governor Gavin Newsom on October 7, includes Senate Bill 253: Climate Corporate Data Accountability Act (SB 253) and Senate Bill 261: Climate-related Financial Risk Act (SB 261).
Emissions icon  
SB 253: Carbon Emission Disclosure:
  • Applies to companies with annual revenue above $1 billion
  • Start reporting Scope 1 and 2 emissions in 2026; Scope 3 emissions in 2027
  • Measure and report in line with the Greenhouse Gas Protocol
 
Mitigation icon  
SB 261: Climate-Related Financial Risk and Mitigation Plans:
  • Applies to companies with annual revenue above $500 million
  • Disclose climate-related financial risk and mitigation strategies in line with TCFD (Task Force on Climate-Related Financial Disclosures)
  • Start reporting in 2026
 

How to Get Started
 

Review internal processes: revisit existing carbon accounting strategy, define baseline metrics, and gap assessment to align with globally recognized greenhouse gas emissions reporting frameworks. Adopt an emissions reduction target and roadmap to define internal resources to meet short- and mid-term expectations of carbon accounting and climate-risk assessment.

 

Increase engagement and transparency: carbon inventory data must be assured by an independent third-party assurance provider. It is necessary to engage key suppliers as well as the highest levels of company leadership to ensure internal accountability around carbon accounting and climate action plans, and integrate climate change risks and opportunities into the company's financial impacts. The bill establishes a publicly available digital platform that allows stakeholders to review reported data from all companies

 

Combine efforts: Like most state-level regulations, businesses must comply with the Climate Accountability Package in addition to federal standards. Public Companies should integrate SB 253 and SB 261 reporting efforts into existing environmental programs and future compliance regulations, including the upcoming SEC Climate Disclosure rules.
 
 

We Can Help
 
 

Woodard & Curran is dedicated to supporting our clients to develop actionable and quantifiable climate action plans that protect our environment. Get in touch with us to discuss how we can help your company optimize compliance and transparency, and reduce your climate risks and impacts.
 
All my best,
Monica Baron
Senior Technical Leader, Sustainability & ESG
Woodard & Curran
 
 
 
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