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California just outpaced the rest of the world in climate transparency. With SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act), the state has effectively created the toughest corporate climate-reporting laws anywhere.
If you sell, supply, or operate in California directly or through distributors you’re now part of this compliance chain. These laws don’t just affect billion-dollar corporations; they pull in their suppliers — including exporters worldwide.
SB 253 — Climate Corporate Data Accountability Act
What it does Forces large companies to publicly disclose greenhouse-gas emissions across Scope 1, 2, and 3.
Who’s in scope
- Any company doing business in California with global revenue > $1 billion
- Includes foreign parents with U.S. subsidiaries or sales into California
What must be reported
- Scope 1: Direct GHG emissions (owned operations)
- Scope 2: Indirect emissions from purchased energy
- Scope 3: All other upstream + downstream emissions in the value chain
Timeline & enforcement
- 2026: First disclosures for Scope 1 & 2 (using 2025 data)
- 2027: Mandatory Scope 3 disclosure
- Third-party verification required
- Administered by: California Air Resources Board (CARB)
- Penalty: Up to $500 000 per year for non-filing or misreporting
2025 update CARB confirmed alignment with GHG Protocol and ISSB S2/TCFD standards. A beta of the CARB Climate Disclosure Portal goes live Q4 2025 for test submissions.
SB 261 — Climate-Related Financial Risk Act
What it does Requires companies to disclose how climate change threatens their financial stability and what they’re doing about it.
Who’s in scope
- Companies doing business in California with global revenue > $500 million
What must be reported
- Physical risks: heatwaves, wildfires, floods, droughts
- Transition risks: carbon pricing, regulatory change, market demand
- Mitigation plans and board oversight
Timeline & enforcement
- 2026: First risk reports due (covering 2025 data)
- Frequency: Every two years
- Penalty: Up to $50 000 per year for non-compliance
- Framework: TCFD-aligned (optionally ISSB S2 / CSRD 29b)
The Dual-Track System: Data + Risk
Together they create a single message: → SB 253 asks “How much carbon do you emit?” → SB 261 asks “How resilient are you to a warming world?”
Why Global Exporters and Suppliers Must Pay Attention**
- Scope 3 = Your Supply Chain. Large customers in California will need verified emissions data from every supplier — that includes you.
- Indirect coverage. You may never set foot in California, but your buyers will pass compliance demands upstream.
- Cross-regulatory alignment. SB 253 and 261 mirror EU CSRD and SEC climate rules. Use one dataset to cover multiple jurisdictions.
- Data cost curve. Building verifiable GHG inventories and risk frameworks takes 12–18 months. Start in 2025 or be late for 2026 filings.
2025 Action Plan for Compliance Teams
- Map your emissions data. Locate Scope 1–3 sources and fill gaps.
- Engage suppliers. Set up automated material and emissions declaration workflows.
- Integrate risk and data. Combine quantitative and qualitative reporting to serve both laws.
- Secure verification partners early. Third-party capacity will tighten once CARB finalizes attestation rules.
- Leverage existing ESG platforms. Use CSRD / ISSB data to reduce duplication and cost.
Acquis Compliance Can Help
Acquis Compliance’s agentic platform automates sustainability reporting at scale:
- GHG data collection from suppliers and facilities
- Scope 1–3 calculation and audit-ready reporting
- Integration with ESG and DPP workflows
- Version-controlled risk disclosure documentation
Book a demo to see how Acquis can simplify SB 253 and SB 261 compliance before the first CARB filing window opens.