California climate regulators on Tuesday put out draft requirements for disclosing corporate exposure to climate-related risks that big companies will have to meet starting next year.
What happened: The California Air Resources Board published a five-point checklist that outlines the minimum standards companies must meet when reporting on their climate-related risks under SB 261, which applies to corporations with at least $500 million in global revenue, and offered more clarity on which businesses are subject to the law, which takes effect Jan. 1.
Why it matters: The draft guidance comes as companies have aired concerns that they will not be able to fully comply with SB 261, for which CARB is still finishing rules. A separate climate disclosure law, SB 253, will require corporations with at least $1 billion in revenue to report carbon emissions throughout their supply chains, starting in June 2026 with emissions connected directly to their operations and energy purchases.
The nation-leading laws have taken on more importance after the Trump administration rolled back a Biden-era federal climate disclosure rule that the Securities and Exchange Commission was developing.
