The California Air Resources Board (CARB) has released a preliminary list of more than 4,000 companies that may fall under the state’s new climate disclosure laws, SB 253 and SB 261.
SB 253, the Climate Corporate Data Accountability Act, requires U.S.-based companies operating in California with annual revenues above US$1 billion to publicly report their Scope 1, 2 and 3 greenhouse gas emissions. SB 261, the Climate-Related Financial Risk Act, applies to companies with revenues exceeding US$500 million, compelling them to publish biennial reports on climate-related financial risks and mitigation measures, in line with international disclosure frameworks.
While the list of 4160 companies signals the scale of compliance expected, CARB has acknowledged that it is not definitive. Some entries appear to be duplicated and others, such as not-for-profit entities, may not ultimately be covered, indicating that refinements will be needed.
Regulators and legal experts have stressed that although the list is not intended as a final determination, companies named should assess their readiness to meet the disclosure requirements. Compliance deadlines are approaching rapidly, leaving little time for firms to put in place the systems and governance necessary to meet the state’s stringent reporting obligations.
The complete list can be viewed here.
