The first reporting deadline under California’s Climate Corporate Data Accountability Act (SB 253) is approaching. The California Air Resources Board (CARB) has established November 10, 2026, as the initial reporting deadline under SB 253. SB 253 generally applies to US-organized public and private companies doing business in California with more than $1 billion in total annual revenue. Under CARB’s proposed implementing regulations, the $1 billion revenue threshold is determined using the lower of the entity’s gross receipts for its two most recently completed fiscal years.

For this initial reporting year, CARB has provided flexibility for covered companies to submit one of the following:

  1. Scope 1 and Scope 2 emissions disclosures: Companies may report Scope 1 and Scope 2 emissions data for their prior fiscal year based on information they already had or were collecting when CARB issued its December 5, 2024, enforcement notice. Acceptable submissions include an existing annual or sustainability report containing Scope 1 and Scope 2 emissions data, information previously reported under a voluntary or other regulatory program, or data submitted using CARB’s reporting template. For 2026, CARB will accept submissions without third-party assurance.
  2. Statement of nonreporting: For the initial reporting year, CARB has provided flexibility in implementing SB 253, including permitting companies to satisfy their initial reporting obligations through existing emissions disclosures and requesting a statement of nonreporting from companies that were not collecting nor planning to collect Scope 1 and Scope 2 emissions data as of December 5, 2024. Instead, CARB requests a statement on company letterhead confirming those circumstances and stating that the company is not submitting an emissions report.

Companies may submit emissions reports or statements of nonreporting through CARB’s voluntary reporting platform or by email to climatedisclosure@arb.ca.gov. Scope 3 emissions reporting does not begin until 2027.

Covered companies should evaluate whether they are subject to SB 253, confirm their reporting obligations and prepare any required submissions ahead of the November 10 deadline.

Litigation challenging SB 253 remains pending, but its reporting requirements have not been stayed. Separately, enforcement of California’s companion Climate-Related Financial Risk Act (SB 261) remains stayed by the US Court of Appeals for the Ninth Circuit pending appeal.

Cooley’s ESG and sustainability advisory attorneys are available to discuss these requirements. Reach out to your existing Cooley contact or email Cooley’s ESG and sustainability advisory team.

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