California publishes a preliminary list of companies that must file climate reports
SB 261 applies to companies with revenues over $500 million that operate in California. These companies will have to disclose a climate financial risk report and the measures they are taking to mitigate or adapt to those risks.
The first climate risk reports are to be published by January 1, 2026. The obligation to report Scope 1 and 2 emissions will start in 2026 (for fiscal year 2025), and Scope 3 emissions in 2027.
CARB warns that the list is preliminary and may not include all firms that will be subject to regulation. It may also contain companies that ultimately will not have to report, such as subsidiaries, if their parent company publishes a report for the entire group.
In contrast, it appears that the U.S. Securities and Exchange Commission (SEC) will not, according to its chairman Paul Atkins, defend its own climate reporting rules in court, which were introduced under the Biden administration. This is related to steps taken by the Trump administration, whose purpose is to not support the growing demands for corporate sustainability and global climate reporting.
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