· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: The California Air Resources Board (CARB) has postponed the formal rulemaking process for its landmark climate disclosure laws—SB 253 and SB 261—until Q1 2026
• The delay follows significant public feedback and ongoing discussions regarding the scope of companies covered
• However, the reporting start dates remain unchanged, with enforcement discretion expected during the initial cycles
🔭 The context: California’s SB 253 and SB 261, signed into law in 2024, are among the most ambitious climate disclosure mandates in the U.S., applying to thousands of companies doing business in the state
• SB 253 requires Scope 1, 2, and 3 emissions reporting from firms with revenues over $1 billion, while SB 261 mandates climate risk disclosures for companies with revenues above $500 million
• These laws are proceeding even as the U.S. SEC’s national climate disclosure rules face uncertainty and delays
🌍 Why it matters for the planet: Robust emissions and climate risk disclosures are critical for enabling transparent, data-driven action on climate change
• California’s regulations cover Scope 3 emissions—often the largest share of a company’s footprint—and push U.S. firms toward value chain accountability
• As federal efforts stall, the state’s leadership sets a precedent for climate governance and can accelerate private-sector decarbonization by requiring greater visibility into emissions hotspots and financial exposure to climate risks
⏭️ What's next: CARB is expected to release its rulemaking proposal in early 2026, alongside continued consultations with stakeholders
• A draft reporting template for Scope 1 and 2 emissions has been issued to guide voluntary compliance in the 2026 cycle, with feedback due by October 27
• Companies are advised to begin preparing internal systems and value chain data collection ahead of mandatory Scope 3 disclosures beginning in 2027
💬 One quote: “If these rules are implemented as planned, California will have the most comprehensive emissions disclosure framework in the U.S., potentially reshaping corporate climate accountability nationwide.” – Environmental policy analyst (unnamed, contextual synthesis)
📈 One stat: Over 4,000 U.S. companies are expected to fall under the scope of California’s new climate disclosure laws, according to CARB’s preliminary list
Explore carbon credit purchases, total emissions, and climate targets of thousands of companies on Data Hub™ — the first platform designed to help sustainability providers generate sales leads!
Click for more news covering the latest on corporate sustainability