Reporting on greenhouse gas emissions and climate-related risks will be required in California beginning in January 2026. Unfortunately, there’s still a lot of uncertainty about what that will involve. Over on PracticalESG.com, we just posted a helpful 17-minute podcast with Kristina Wyatt of Persefoni that gives the latest update on what companies need to be doing to comply with these laws. Kristina shares key topics from a workshop that the California Air Resources Board (CARB) recently hosted.

This new guide from ISS-Corporate also gives a quick refresher on getting started with SB 253 and SB 261 reporting. Key takeaways include:

– 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 guide recommends that companies start to prepare for disclosure based on current information, which will give more breathing room and time for strategic decisions when the deadline nears.

– Liz Dunshee