California sets deadline for climate data reporting

The California Air Resources Board (CARB) has outlined a reporting deadline for California Greenhouse Gas Reporting (SB 253) after approving the adoption of the bill.

Based on stakeholder feedback, the organisation has pin-pointed August 10, 2026, as the first-year reporting deadline. For the inaugural year, companies must include only Scope 1 and 2 emissions: the former regarding greenhouse gas (GHG) emissions controlled or owned by an organisation, the latter addressing indirect GHG emissions.

The regulation, which also identifies a flat-rate fee structure, pertains to businesses in California with revenue over 500 million dollars or one billion dollars. The revenue threshold is tied to entities’ gross receipts as reported to the California Franchise Tax Board in an effort to streamline implementation.

According to CARB, more than 120 climate-related financial risk reports from both private and public entities have already been voluntarily submitted and made publicly available.

In a statement, CARB chair, Lauren Sanchez, said: “By establishing clear and consistent disclosure requirements, California is ensuring that the state’s investors and consumers have access to reliable information to inform their decisions and is joining other jurisdictions around the world in requiring climate data transparency.

“Many business leaders are already choosing to engage early, a clear indication they recognise the importance of climate-related risk transparency to inform business and consumer decisions.”

The Climate Financial Risk Disclosure Initial Regulation Act (SB 261) will not be enforced, CARB announced, as determined by a court order. Reporting in relation to this report is therefore voluntary.