California's climate disclosure regulation SB 253 requires climate-related disclosure requirements on public and private American companies that do business in California and meet the annual revenue thresholds of over $1 billion. Scope 1 and 2 emissions must be verified by an independent third-party provider.
Beginning in 2026, approximately 5,000 companies operating in California must comply with these requirements, making 2025 a critical year for aligning data collection, team coordination, and strategic planning.
SB 253
SB 253 mandates U.S.-based companies with revenues over $1 billion doing business in California to report their Scope 1 and 2 GHG emissions starting in 2026 and Scope 3 emissions beginning in 2027. These reports must align with the Greenhouse Gas Protocol and include limited assurance audits. Penalties for non-compliance are capped at $500,000 per reporting year, with safe harbor provisions for Scope 3 inaccuracies if reported in good faith.
