Landmark California emissions reporting regulations enter force

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Responsible Investor or enjoy below:

🗞️ Driving the news: California’s landmark corporate emissions reporting regulations have officially entered into force, requiring large companies doing business in the state to disclose their greenhouse gas emissions
• The California Air Resources Board (CARB) has contacted companies within scope about their reporting obligations under Senate Bill 253 (SB 253)
• The rules received final regulatory approval on October 12, 2026

🔭 The context: The legislation applies generally to US-based companies with more than $1 billion in annual revenue that do business in California, subject to statutory definitions and exemptions
• Initial reports must cover Scope 1 emissions—those generated directly by a company—and Scope 2 emissions from purchased electricity, heating, cooling and steam
• Scope 3 emissions, which arise across a company’s value chain, are expected to be included from 2027

🌍 Why it matters for the planet: More consistent corporate emissions disclosures can help investors, regulators and consumers assess companies’ climate impacts and compare progress toward decarbonisation
• Greater transparency may also encourage businesses to measure and reduce emissions throughout their operations and supply chains

⏭️ What’s next: Companies covered by SB 253 must prepare their initial emissions reports and review CARB’s submission guidance
• Meanwhile, enforcement of California’s companion climate-related financial risk disclosure law, SB 261, remains paused under a court injunction

💬 One quote: CARB Chair Lauren Sanchez said the rules would provide “clear and consistent disclosure requirements,” giving investors and consumers more reliable information for their decisions. GovDelivery

📈 One stat: November 10, 2026 is the deadline for the first-year Scope 1 and Scope 2 emissions reports under SB 253

Subscribe to our free newsletters to never miss a beat in sustainability.

The world needs sustainability knowledge. At illuminem, no interest group or shareholder can influence our work. Thank you for supporting our mission to make high-quality and independent sustainability information free for all. Every contribution helps. Thanks for donating today