California's rules reach far beyond California.
There's no single federal law — instead California passed its own, and because so many companies do business there, it affects firms nationwide. Under SB 253, any company with over USD 1 billion in revenue doing business in California reports Scope 1, 2 and (from 2027) Scope 3. Under SB 261, companies over USD 500 million publish a climate-risk report every two years. Even below these thresholds, a large customer may ask you for the data.
Who it applies to
- SB 253: >$1B revenue & doing business in California — Scope 1, 2, then 3 from 2027
- SB 261: >$500M revenue — a biennial climate-financial-risk report
- Even below the thresholds, a large customer may require the data from you
What your report must include
- SB 253: Scope 1, 2 and (from 2027) 3 under GHG Protocol, with limited assurance from 2027
- SB 261: biennial climate-related financial risk narrative aligned to TCFD / IFRS S2
Do you do business in California?
- Scope
- Scope 1–3
- SB 253
- >$1B revenue
- SB 261
- >$500M revenue
- Method
- GHG Protocol · TCFD
Common questions
Who must report under California SB 253?+
Companies with over USD 1 billion in annual revenue that do business in California. They report Scope 1 and 2 under the GHG Protocol, with Scope 3 added from 2027.
What does SB 261 require?+
Companies with over USD 500 million in revenue publish a climate-related financial risk report every two years, aligned to TCFD / IFRS S2.
When are the first reports due?+
The first SB 253 Scope 1 & 2 reports are due by 10 Aug 2026, with limited assurance from 2027.
Do California's rules matter below the thresholds?+
Often, yes — even below the thresholds, a large customer may require the same emissions data from you.