California Climate Disclosure: What SB 253 & SB 261 Mean for U.S. Companies
The California Air Resources Board (CARB) recently released a preliminary list of 4,160 U.S. companies that must comply with the state’s sweeping new climate disclosure laws, SB 253 and SB 261. Using MyLogIQ’s CompanyIQ® SEC disclosure research tool, we’ve analyzed the impact and implications of these mandates.
The Scope of California’s Climate Rules
SB 253 – Greenhouse Gas Emissions Reporting
- Applies to companies with $1B+ annual revenues doing business in California.
- Requires disclosure of:
- Scope 1 and Scope 2 emissions beginning in 2026.
- Scope 3 emissions (supply chain, procurement, travel, waste, water use) beginning in 2027.
SB 261 – Climate Financial Risk Reporting
- Applies to companies with $500M+ annual revenues in California.
- Requires biennial disclosure of climate-related financial risks and adaptation strategies.
- First reports due January 1, 2026.
Why This Matters for All U.S. Companies
Even companies headquartered outside California are on the hook if they operate in the state. That means California’s law is effectively a nationwide mandate—impacting household names like Alphabet, Meta, Nike, Nvidia, and Disney.
Notably absent from the preliminary list are Apple, Microsoft, Tesla, Visa, and Uber—though any company meeting revenue thresholds will still be responsible for reporting, regardless of listing status.
California vs. Non-California Companies
CARB’s preliminary data shows both California-based and out-of-state companies will be heavily impacted, with wide impact across Delaware, New York, Maryland, Nevada, and beyond.
How MyLogIQ and CompanyIQ® Help
Navigating these mandates will be complex, but MyLogIQ’s CompanyIQ® SEC disclosure and report analytics make it easier. By tracking report filings, governance language, and regulatory compliance, companies and investors can gain clarity on who’s impacted and how to prepare.
Conclusion
California’s SB 253 and SB 261 represent the most sweeping climate disclosure mandates in U.S. history. With deadlines approaching in 2026 and 2027, now is the time for companies to assess readiness, supply chain reporting capabilities, and climate risk disclosures.