California, October 17, 2025
News Summary
California has postponed the finalization of climate disclosure regulations mandated by SB 253 and SB 261 until the first quarter of 2026. Despite this delay, compliance deadlines remain unchanged, with companies under SB 261 required to submit climate-related risk reports by January 1, 2026, and those under SB 253 to report emissions by June 30, 2026. The California Air Resources Board has invited public input to improve the reporting process, while ongoing legal challenges add complexity to the regulations.
California has announced a significant delay in finalizing climate disclosure regulations that were expected by fall 2025. The California Air Resources Board (CARB) has pushed back the deadline for the implementation of SB 253 and SB 261 until the first quarter of 2026. This postponement comes in response to a substantial volume of public feedback and the necessity for additional technical discussions concerning which companies will be affected by these mandates.
Despite this delay, compliance deadlines remain the same. Companies that fall under SB 261, which pertains to those with revenues exceeding $500 million, must submit climate-related risk reports by January 1, 2026. Meanwhile, firms governed by SB 253, applicable to companies with annual revenues over $1 billion, are required to report their direct Scope 1 and 2 emissions by June 30, 2026. These regulations aim to promote transparency related to corporate climate impacts and risks.
In an effort to simplify the reporting process, CARB has released a draft reporting template intended for first-time reporters. The use of this template is voluntary for the 2026 reporting cycle, with CARB encouraging public input until October 27, 2025. Stakeholders are invited to provide feedback on potentially covered entities and exemptions as part of CARB’s voluntary survey.
A preliminary list has already been published, identifying over 3,100 companies—ranging from electric utilities and energy companies to manufacturers—that will be required to comply with these regulations regardless of whether their names appear on this list. Notable entities in the initial list include major corporations such as Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy.
SB 253 is particularly significant, requiring not only the disclosure of Scope 1 and 2 emissions—which account for direct and indirect emissions from the supply chain, business travel, and more—but also Scope 3 emissions. This wider scope aims to provide a comprehensive view of a company’s climate impact. Meanwhile, SB 261 specifically mandates the disclosure of climate-related financial risks for eligible companies.
As the development of these regulations continues, CARB has underscored its commitment to capturing a comprehensive array of covered entities through a refinement of the initial proposals. Furthermore, there are ongoing legal challenges against CARB concerning SB 253 and SB 261, adding a layer of complexity and controversy to the implementation of these regulations.
The path forward includes a pledge from CARB to expedite the publication of draft regulations by October 14, 2025, followed by a public comment period concluding in December 2025. The upcoming regulations are poised to establish a benchmark for corporate climate-related reporting not just in California, but potentially across the nation.
Key Dates and Requirements:
- January 1, 2026: Deadline for companies under SB 261 to submit climate-related risk reports.
- June 30, 2026: Deadline for companies under SB 253 to report Scope 1 and 2 emissions.
- October 27, 2025: Deadline for public input on the draft reporting template.
- October 14, 2025: Expected publication of draft regulations by CARB.
- December 2025: End of the public comment period for new regulations.
Background of the Legislation:
The climate disclosure regulations, SB 253 and SB 261, reflect California’s evolving stance on climate responsibility within corporate practices. They are designed to enhance accountability and transparency in dealing with climate change impacts, aligning California with other jurisdictions aiming to improve corporate environmental reporting standards.
FAQ Section
What is the new deadline for the finalization of climate disclosure regulations in California?
The California Air Resources Board (CARB) has delayed the finalization of climate disclosure regulations for SB 253 and SB 261 until the first quarter of 2026.
What are the compliance deadlines for companies under SB 253 and SB 261?
Companies under SB 261 are required to submit climate-related risk reports by January 1, 2026. Firms governed by SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026.
What companies are included in the preliminary list associated with the new regulations?
A preliminary list of over 3,100 companies has been published, which includes electric utilities, energy companies, and manufacturers. Key entities included in the preliminary list are major companies such as Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy, among others.
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Rulemaking Timeline for Climate Regulations
- Mayer Brown: California Climate Disclosure Laws – Countdown to Disclosure
- Carbon Herald: California Delays Climate Disclosure Rulemaking to 2026
- ESG Today: California Delays Rulemaking for New Climate Reporting Regulations
- Wikipedia: Climate Change in California
- Google Search: California Climate Disclosure Laws
- Encyclopedia Britannica: Climate Change
Author: STAFF HERE HUNTINGTON BEACH
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