Below is an excerpt from ISS-Corporate’s recently released article “California Climate Accountability: Getting Started on SB 253 and SB 261 Reporting.” The full article is available on the ISS-Corporate online library.
Key Takeaways:
- Emissions Disclosure: SB 253 requires companies in scope to annually disclose scope 1 and 2 GHG Emissions (Scope 3 starting 2027)
- Financial Risks: SB 261 requires companies to report biannually on climate-related financial risks
- Future Guidance: CARB will develop guidance around the climate acts, but these will likely not be finalized until late 2025.
- Getting Ready for Emissions Reporting: Companies can begin developing disclosures aligned with SB 253 requirements using available guidance and standards.
- Framework Clarity: SB 261 is informed by the TCFD and IFRS S2 frameworks. Companies can proactively address the regulation by aligning their reporting with these standards, as CARB continues to finalize specific requirements.
The January 2026 reporting deadline for The California Climate Accountability Package (CCAP), which requires companies to report their greenhouse gas emissions and climate risk exposure, is closing in. Yet, there are still uncertainties about exactly what companies are expected to report on. Despite lacking guidance from the California Air Resource Board (CARB), there is sufficient information for companies in scope of the regulations to start preparing disclosures.
Early preparation will make the process more comfortable for first time reporters and leave room to anchor strategic decisions within the organization.
For more background, you can download our comprehensive report on the CCAP.
By:
Fredrik Lundin, Executive Director, Sustainability Product, ISS-Corporate
Ravi Mahapatra, Associate, Sustainability Product, ISS-Corporate
