California Climate Accountability Package
California Climate Accountability Package
SB-261
US companies with over $500 million in revenue will need to bi-annually disclose climate-related risks starting January 2026. The Senate Floor Analysis emphasized the importance of transparency on climate-related risks for policymakers, investors, and shareholders. In turn, it will improve decision-making on where to invest public and private dollars.
SB-253
US companies with over $1 billion in revenue that do business in California will need to disclose Scope 1 & 2 emissions starting in 2026 and Scope 3 in 2027. This is the first US regulation to require Scope 3 emissions, which are indirect emissions from a company’s value chain.
Who does CCAP impact?
This doesn’t just impact California. The bills apply to any public or private company doing business in California, not just companies that are based in California. For a lot of companies, this will be the first time they’ll have to report on their GHG emissions and climate-related risks.
Who is required to disclose?
SB-261: Public or private companies based in California or that do business in California with over $500 million in revenue.
SB-253: Public or private companies based in California or that do business in California with over $1 billion in revenue.
Who is 'in scope' to report?
Larger public and private institutions with significant exposure to climate-related risks and/or with substantial greenhouse gas emissions will be required to disclose.
How to prepare?
It's impossible to become compliance-ready overnight. If you are 'in scope' for either SB-261 or SB-253, you need to start preparing now. This includes establishing a task force, getting support from executive leadership, and developing a sustainability roadmap. For assistance on getting started, Socialsuite is here to help!
Read our Blog for more information
Our team of experts summarized the California Climate Accountability Package in this blog post. Read now to understand the key components.
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