California SB 253 / SB 261 / SB 219
California SB 253 Climate Corporate Data Accountability Act and SB 261 Climate-Related Financial Risk Act · SB 253 · SB 261 · SB 219 · CCDAA · Climate-Related Financial Risk Act · California Climate Disclosure
Term — California climate-disclosure statutes SB 253, SB 261 and SB 219: california climate disclosure stack — SB 253 (CCDAA) mandates GHG Protocol Scope 1+2 reporting from 2026 (FY2025) and Scope 3 from 2027 (FY2026) for entities 'doing business in California' with global revenue >$1B, with limited assurance escalating to reasonable assurance by 2030; SB 261 mandates biennial TCFD/IFRS S2-aligned climate-related financial risk report for entities >$500M starting January 2026; SB 219 (2024) refined deadlines, added consolidated parent reporting, Scope 3 safe-harbour through 2030; CARB-administered with penalties up to $500,000 (SB 253) and $50,000 (SB 261) per reporting year.
California's three-bill climate disclosure stack — SB 253 (Climate Corporate Data Accountability Act, Wiener), SB 261 (Climate-Related Financial Risk Act, Stern), SB 219 (2024 amendments) — pulls thousands of US-formed entities 'doing business in California' (Franchise Tax Board test) with global revenue above the thresholds into mandatory disclosure. SB 253 thresholds and scope — global total annual revenue >$1B; subsidiaries roll up to ultimate parent for revenue test but report consolidated. SB 253 requires GHG Protocol Corporate Standard-aligned Scope 1 (direct: combustion, process, fugitive, fleet), Scope 2 (purchased electricity/steam/heat/cooling, both location- and market-based), and Scope 3 (15 categories: purchased goods/services, capital goods, fuel/energy, upstream/downstream transport, waste, business travel, employee commute, leased assets, processing/use/end-of-life of sold products, franchises, investments) emissions. Reporting timeline — Scope 1+2 from 2026 for FY2025 with limited third-party assurance, reasonable assurance by 2030; Scope 3 from 2027 for FY2026 with limited assurance by 2030; Scope 3 safe harbour through 2030 for good-faith estimates. CARB-published platform with filing fees. Penalties up to $500,000 per reporting year. SB 261 thresholds and scope — global revenue >$500M; insurance companies exempt. Biennial climate-related financial risk report aligned with TCFD recommendations (now IFRS S2) covering four pillars (governance, strategy with 1.5°C and 3°C+ scenario analysis, risk management, metrics and targets including Scope 1/2/3 where material and transition plan). First report due January 1, 2026 covering FY2024-2025; biennial thereafter; published on company website with link reported to CARB. Penalty up to $50,000 per reporting year. SB 219 refinements — extended CARB rulemaking deadline; allowed consolidated reporting at parent level; preserved Scope 3 safe harbour; permitted CARB to align with federal/international frameworks (CSRD ESRS E1, IFRS S2, SEC climate rule) to reduce duplication. Assurance providers under SB 253 must meet CARB qualification (AICPA, ISO 14065, equivalent). Implementing regulations finalized through 2025-2026.
- California Health and Safety Code §38532
- California Health and Safety Code §38533
- SB 253 (2023)
- SB 261 (2023)
- SB 219 (2024)
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