SB 253 and SB 261 Overview
SB 253 applies to companies with more than $1 billion in annual revenue that “do business in California1.” It requires disclosure of greenhouse gas (GHG) emissions, beginning with Scopes 1 and 2 in 2026, followed by Scope 3 in 2027. The disclosures must follow recognized GHG accounting standards and will eventually require independent assurance (CARB Program Page). The first disclosures for Scope 1 and 2 emissions are now due August 10, 2026.
SB 261 applies to companies with more than $500 million in annual revenue and requires biennial reports describing their climate-related financial risks and mitigation measures. These reports are expected to align closely with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
Together, these two laws form the foundation of California’s climate disclosure framework, aiming to provide investors and the public with consistent and comparable information on corporate climate risks and impacts.
New Legal Development: SB 261 Deadline Halted
On November 18, 2025, the Ninth Circuit Court of Appeals temporarily halted enforcement of SB 261 in response to an emergency application filed by the U.S. Chamber of Commerce and other business groups.
As a result, the January 1, 2026, deadline for the first SB 261 climate-risk reports is suspended. The pause creates uncertainty, and the timeline for reinstatement has not yet been determined.
A Shift in the Rulemaking Timeline
In early October 2025, CARB announced that it would extend its rulemaking schedule for the state’s climate disclosure laws, SB 253 (the Climate Corporate Data Accountability Act) and SB 261 (the Climate-Related Financial Risk Disclosure Act), into the first quarter of 2026. CARB explained that the extension allows more time to review public comments and refine key definitions and reporting processes. The agency has emphasized its goal of ensuring that the final regulations are clear and workable for companies of different sizes and industries.
However, CARB's rulemaking delay and the Ninth Circuit's temporary half affect reporting differently:
- SB 261: Current status: Temporarily halted by Ninth Circuit order - No active deadline until litigation progresses or order is lifted.
- SB 253: Current status: Active - First GHG emissions reports on Scopes 1 and 2 will be due in 2026 with Scope 3 disclosures beginning in 2027. CARB proposed moving the annual reporting timeline from June 30th to August 10th and adjusting the first reporting cycle to align with the entity's fiscal year end.
- Entities with their fiscal year ending between January 1 and February 1, 2026, will report their data from fiscal year ending 2026.
- Entities with fiscal year ending between February 2 and December 31, 2026, will report data from the fiscal year ending in 2025.
CARB has previously signaled that it may apply enforcement discretion during initial reporting cycles if companies show good-faith compliance, but enforcement discretion cannot override the Ninth Circuit’s stay on SB 261.
What This Means for Businesses
While SB 261 timelines are paused, momentum toward climate-risk disclosure continues globally through SEC climate rules, Corporate Sustainability Reporting Directive (CSRD), International Sustainability Standards Board (ISSB), and investor expectations. Many organizations are choosing to continue preparing even during the pause to avoid falling behind once the law is reinstated or final guidance is issued.
For SB 253, the statutory deadline remains in 2026, and companies should continue preparing for 2026 and 2027 emissions disclosures.
Steps to Prepare Now
Even with the temporary SB 261 halt, early action remains the best risk-management strategy across both laws:
- Confirm applicability. Review your operations and revenue structure to determine whether your company falls within the scope of SB 253 or SB 261.
- Start data collection. Gather GHG emissions data for fiscal year 2025 and identify any gaps in Scope 3 data availability.
- Align with existing frameworks. Use the GHG Protocol and TCFD as references, since CARB has signaled that its rules will rely on these standards.
- Engage stakeholders. Coordinate sustainability, finance, and legal teams to establish governance around disclosure.
- Monitor updates. Follow CARB’s official program page and workshops for the latest information.
How Antea Group Can Help
At Antea Group, we recognize that the delay in CARB’s rulemaking creates uncertainty for companies that still need to meet near-term deadlines.
Antea Group can support your organization in two critical ways:
- Report preparation and disclosure support. Our consultants can help you develop and document your initial emissions report under SB 253. We guide clients in identifying reportable data, framing omission statements appropriately, and ensuring alignment with TCFD and GHG Protocol expectations.
- Full climate risk assessment with scenario analysis. After the initial filing, we can conduct a comprehensive climate risk assessment that includes scenario analysis and quantitative evaluation of transition and physical risks. These insights allow us to help you produce a complete, CARB-ready report once the final rulemaking is complete.
By acting now, not just when deadlines return, companies can demonstrate transparency, manage compliance risk, and position themselves for a smoother transition when CARB’s final regulations take effect.
To learn more about our CARB disclosure support services or to begin preparing your SB 253 report, please visit Antea Group’s Sustainability Homepage.
In Summary
- SB 253 remains active with the first emissions report due in August 2026.
- SB 261 enforcement is temporarily paused, and the January 1, 2026 reporting deadline is no longer in effect following the Ninth Circuit ruling.
- Companies that continue preparing for both climate-risk and emissions disclosure will be best positioned once litigation concludes and final CARB regulations are released.
The litigation may pause the deadline, but preparation remains the smartest path forward.
Further Reading / Sources
FOOTNOTE:
1The State of California defines “doing business” as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit in California. An entity is doing business if it meets that definition AND meets either of the following conditions:
- Are organized or commercially domiciled in California; or
- The company’s California sales exceed certain thresholds, including sales by an agent or independent contractor of the entity.
