California rules force climate disclosures
California’s new climate‑disclosure rules are now in effect, requiring large companies to annually report direct and indirect greenhouse‑gas emissions with broader reporting phases starting next year. That push for transparency comes as the CFTC withdrew a recent request for information on climate‑related financial risk — a curious federal pullback while the UK simultaneously elevates sustainability disclosure to boardroom priority. (mondaq.com) (federalregister.gov) (influencers-time.com)
The California Air Resources Board voted to adopt final implementing regulations for SB 253 and SB 261 on February 26, 2026, and the rule package sets administration and implementation fees plus a one-time first-year reporting deadline of August 10, 2026. (ww2.arb.ca.gov)) SB 253 applies to U.S.-organized entities with more than $1 billion in annual revenue that do business in California and requires Scope 1 and Scope 2 disclosures beginning in 2026 and Scope 3 disclosures beginning in 2027. (proskauer.com)) CARB’s September 24, 2025 preliminary list identified roughly 4,160 entities that may fall within SB 253/SB 261’s scope, and CARB emphasizes the list is not definitive so each company must independently confirm applicability. (hoganlovells.com)) SB 261 would have required entities with more than $500 million in annual revenue to submit biennial climate‑related financial risk reports, but the U.S. Court of Appeals for the Ninth Circuit temporarily enjoined enforcement of SB 261 on November 18, 2025, pausing the law ahead of its first‑report timeline. (omm.com)) At the federal level, the Commodity Futures Trading Commission formally withdrew its June 8, 2022 Request for Information on climate‑related financial risk, with the withdrawal listed as effective March 16, 2026 in the Federal Register. (federalregister.gov)) In contrast, the U.K. has been finalizing its sustainability disclosure architecture—publishing UK Sustainability Reporting Standards (SRS) after consultations and updating the Financial Conduct Authority’s Sustainability Disclosure Requirements as recently as February 27, 2026—to elevate sustainability information to boardroom and market‑facing duties. (gov.uk))
