Here’s something my colleague Zachary shared yesterday on PracticalESG.com:

California climate bills SB 253 and SB 261 were sailing along towards implementation. Despite litigation challenging the laws, the lower courts initially refused to issue injunctions against them. Plaintiffs were appealing to the Supreme Court for an emergency injunction that seemed like a long shot.  Then, somewhat unexpectedly, the Ninth Circuit Court of Appeals enjoined SB 261, staying the law pending the outcome of litigation. However, confusion remained as to whether this injunction applied to all in-scope companies, or only those parties to the lawsuit. The California Air Resources Board (CARB) clarified this week that it would not enforce SB 261 against any companies at this time. A recent Gibson Dunn memo discusses CARB’s statement:

On December 1, 2025, the California Air Resources Board (‘CARB’), the state agency responsible for enforcing SB 261, responded to the injunction by posting an enforcement advisory stating it would not enforce the law ‘against covered entities for failing to post and submit reports by the January 1, 2026, statutory deadline.’ Instead, CARB ‘will provide further information—including an alternate date for reporting, as appropriate—after the appeal is resolved.’

SB 261 is now in limbo, meaning companies will not be required to report on climate-related financial risk. Its counterpart, SB 253, has not been enjoined and is still set to come into force. SB 253 requires disclosures of emissions data, and the first reports are due on August 10, 2026.  It’s unclear if and when SB 261 will be enforceable, but if the law survives its court challenges, then we’ll likely hear more from CARB regarding compliance timelines.

PracticalESG.com members can learn more about SB 261 and SB 253 here. If you’re interested in a full membership to PracticalESG.com with access to the complete range of benefits and resources, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. If you are not a member, but you follow PracticalESG.com blogs, beginning January 15, 2026, those blogs will no longer be available without a PracticalESG.com membership. But there’s a new membership level just for the blogs – and sign up is live with a limited time incentive. If you obtain a blog-only membership before January 15, 2026, you can take advantage of a 50% discount off the regular first-year membership ($249.50 for a 2026 membership versus $499 regular price).

– Meredith Ervine