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VideoCalifornia Climate Reporting
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Your path to California climate reporting starts here.
California’s new climate disclosure landscape now extends across greenhouse gas emissions, climate-related financial risk and certain voluntary carbon market and climate-related claims. Senate Bill (SB) 253, SB 261 and Assembly Bill (AB) 1305 each establish different requirements, making it important for organizations doing business in California to understand which laws apply and what actions they require.
The regulatory profile also continues to change. SB 253 reporting is moving forward, while implementation of SB 261 has been affected by ongoing litigation. AB 1305, meanwhile, already requires certain disclosures from businesses that market or sell voluntary carbon offsets or make specified climate-related claims.
Weaver’s sustainability and energy compliance teams are tracking these developments and helping organizations assess applicability, establish reporting processes and prepare data and disclosures.
Understanding California’s Climate Laws
California’s climate laws address different aspects of corporate climate reporting. Understanding the distinctions can help organizations determine where they may have reporting or disclosure obligations.
| SB 253 GHG Emissions Reporting |
SB 261 Climate-Risk Reporting |
AB 1305 Carbon Claims and Offsets |
|
|---|---|---|---|
| What it covers | Greenhouse gas emissions reporting | Climate-related financial risk reporting | Voluntary carbon offsets and certain climate-related claims |
| Who may be affected | U.S.-based entities doing business in California with annual revenue exceeding $1 billion | U.S.-based entities doing business in California with annual revenue exceeding $500 million, subject to specified exemptions | Businesses marketing or selling voluntary carbon offsets in California and entities making specified climate-related claims |
| Primary requirement | Report Scope 1 and Scope 2 GHG emissions, with Scope 3 reporting required in later reporting periods | Prepare and publicly disclose a climate-related financial risk report | Publish specified information supporting carbon offset activity or climate-related claims |
| Current timing/status | Scope 1 and Scope 2 reporting begins in 2026; CARB has identified November 10, 2026, as the first reporting deadline | Implementation is affected by ongoing litigation | Disclosure requirements are currently in effect |
| Revenue threshold | More than $1 billion | More than $500 million | No revenue threshold |
Our Perspective on SB 253, SB 261 and AB 1305
“California’s climate laws do not create one uniform reporting requirement. Organizations need to understand which laws apply to them, what each requires and where their existing data and reporting processes may need to evolve. Starting with that assessment can make the path forward much clearer.”
– Ashly Pleasant, Director, Sustainability Services
AB 1305 Expands California Climate Disclosure Requirements
Unlike SB 253 and SB 261, AB 1305 does not use a revenue threshold to determine applicability. Instead, requirements are triggered by certain activities or claims. The law applies to businesses that market or sell voluntary carbon offsets in California, organizations that use offsets to support net-zero, carbon-neutral or significant emissions-reduction claims, and organizations making those climate claims in California even when offsets are not involved.
AB 1305 requires covered organizations to publish specified information on their websites and update those disclosures annually. Depending on the activity, disclosures may address the carbon offset project and verification process, identify offsets used to support climate claims or explain how an organization determined that a climate-related claim was accurate and how progress is measured. Organizations making public climate claims should evaluate those statements and supporting data to determine whether AB 1305 disclosure requirements apply.
Key Questions About California Climate Compliance
California’s climate laws raise different questions depending on an organization’s revenue, activities and reporting obligations. These questions can help businesses identify where to focus first.
Which California climate laws could apply to my organization?
Applicability depends on the law. SB 253 generally applies to U.S.-based entities with more than $1 billion in annual revenue that do business in California, while SB 261 generally uses a $500 million threshold. AB 1305 does not have a revenue threshold and may apply based on an organization’s voluntary carbon market activity or climate-related claims. Organizations should evaluate each law independently rather than assuming that being outside the scope of one California climate law means they are outside the scope of the others.
What does SB 253 require companies to report?
SB 253 requires covered entities to report greenhouse gas emissions, beginning with Scope 1 and Scope 2 emissions. Scope 1 includes direct emissions from sources owned or controlled by the organization, while Scope 2 includes indirect emissions associated with purchased energy. Scope 3 reporting, which addresses other indirect emissions across the value chain, is scheduled to follow. Companies preparing for SB 253 should evaluate their emissions inventories, data sources, controls and reporting processes as well as requirements for third-party assurance.
What is the current status of SB 261?
SB 261 establishes biennial reporting of climate-related financial risks and the measures organizations use to address those risks. Its implementation has been affected by ongoing litigation, making continued monitoring important for potentially covered organizations. Even while the regulatory situation develops, organizations can evaluate their climate governance, physical and transition risks and existing disclosures to understand their readiness for future reporting expectations.
What should organizations know about AB 1305?
AB 1305 focuses on transparency around voluntary carbon offsets and certain climate-related claims. It can apply to businesses that market or sell voluntary carbon offsets in California as well as entities operating in California that make claims such as net zero, carbon neutral or significant emissions reductions. Covered organizations must make specified information publicly available on their websites and update required disclosures at least annually. Because AB 1305 does not include a revenue threshold, organizations that are not subject to SB 253 or SB 261 may still have obligations under the law.
What should companies be doing now?
Organizations should first determine which California climate laws apply to their operations and activities. From there, companies can assess existing emissions data, climate risk processes, public claims, governance and reporting capabilities against applicable requirements. For organizations subject to SB 253, the near-term priority is preparing Scope 1 and Scope 2 emissions data and the supporting processes and controls needed for reporting and assurance. Organizations should also review climate-related statements and carbon offset activity for potential AB 1305 requirements and continue monitoring developments affecting SB 261.
Insights and Resources to Start Preparing
The Green Stop: Update on California SB253 and SB261
Ashly Pleasant shares an overview of what’s coming, what CARB requires and how your company should respond. Watch now.
Success Story: Supporting Climate Risk Reporting Under SB 261 for a Global Energy Company
See how Weaver helped a global energy company establish its reporting boundary, evaluate physical and transition risks and develop a climate-related financial risk disclosure.
Success Story: How Low Emitting Companies Evaluate Climate Risk Under SB 261
Explore how Weaver helped a national litigation firm navigate climate risk and regulatory disclosure expectations across several high-exposure geographies.
Article: California Climate Reporting Changes Leave Companies with Less Time to Prepare
Learn who’s impacted, what actions matter most and how to set up your reporting processes now to avoid costly compliance issues later.
Guide: Navigating California Climate Laws SB 253 and SB 261 for Compliance and Beyond
Weaver’s guide can help you grasp what’s required for reporting and disclosures related to SB 253 and SB 261.
Weaver’s Role in Emissions Reporting and Compliance
California’s climate requirements bring together regulatory interpretation, greenhouse gas measurement, climate risk assessment, reporting and assurance. Weaver’s energy compliance services (ECS) and sustainability teams provide support across these areas.
Our ECS professionals calculate greenhouse gas emissions for organizations across industries, bringing practical knowledge of the data, methodologies and systems involved in emissions reporting. Weaver’s sustainability professionals help organizations assess climate-related risks, reporting frameworks, governance and disclosures.
Together, our teams help organizations assess applicability, identify reporting gaps, strengthen data collection and controls and prepare for evolving climate reporting requirements.
Contact Us
Have questions about how SB 253, SB 261 or AB 1305 may affect your organization? Connect with Weaver to assess your requirements and determine the next steps for reporting and compliance.
©2026
