California has announced a key milestone in corporate climate transparency, setting August 10, 2026 as the deadline for companies to submit their first greenhouse gas emissions reports under new climate disclosure regulations.

The requirement follows the adoption of rules by the California Air Resources Board (CARB) implementing two major laws—SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act)—aimed at strengthening corporate climate reporting and risk disclosure across the state.

Under SB 253, companies doing business in California with annual revenues exceeding $1 billion must report their Scope 1 and Scope 2 greenhouse gas emissions annually, covering direct emissions and indirect emissions from purchased energy. Beginning in 2027, companies will also be required to disclose Scope 3 emissions across their value chains, including supply chains, employee commuting, procurement, and waste.

Meanwhile, SB 261 requires companies with over $500 million in revenue operating in the state to publish climate-related financial risk reports, outlining how climate change could impact their business operations and the measures being taken to mitigate these risks. However, enforcement of this requirement is currently paused due to ongoing legal challenges, making initial submissions voluntary for now.

The regulation establishes compliance timelines, administrative fees, and reporting definitions, while aiming to provide investors and consumers with consistent and reliable climate-related information. California regulators also indicated they may allow flexibility in the first reporting cycle, encouraging companies to demonstrate good-faith efforts toward compliance.

With these rules, California becomes one of the first U.S. jurisdictions to mandate comprehensive corporate climate disclosure, signaling a broader shift toward transparency in corporate climate risk and emissions reporting.