CARBverified 2026-06-14in-force
California SB-253 (Climate Corporate Data Accountability) and SB-261 (Climate-Related Financial Risk)
- Issued
- 2023-01-01
- Effective
- 2023-04-01
Applies to
Companies (US and non-US) doing business in California above defined revenue thresholds — SB-253 ≥ US$1bn revenue; SB-261 ≥ US$500m revenue. Indian-parent companies with material California-nexus subsidiaries are within scope.
Key points
- SB-253: Scope 1+2 from 2026; Scope 3 from 2027; limited assurance scaling to reasonable.
- SB-261: TCFD/ISSB-style climate-risk and transition-plan disclosure biennially.
- Applies regardless of incorporation state — 'doing business in California' is the trigger.
Applicability triggers
- Indian-parent technology, pharma or services company with a California subsidiary above threshold.
- Indian listed entity acquiring US business that brings it into CA-nexus.
Practitioner questions
Sources
Related global frameworks
- TCFD RecommendationsISSB
Voluntary disclosure framework on climate-related financial risks (governance, strategy, risk management, metrics & targets).
- ISSB S1/S2ISSB
Global baseline of investor-focused sustainability-related (S1) and climate-related (S2) financial disclosures. Consolidates TCFD recommendations.
- GHG Protocol Corporate StandardGHG Protocol
Globally adopted corporate accounting and reporting standard for Scope 1, 2 and 3 GHG emissions. Foundation for ISSB IFRS S2 metrics, BRSR Core climate KPIs and SBTi target-setting.
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