California Climate-Related Financial Risk Act (SB 261)
Under SB 261, companies doing business in California with a total annual revenue of more than $500 million are required to comply. Both private and public companies are impacted, meaning that California’s new climate disclosure rule can affect over 10,000 businesses.
SB 261 asks companies to prepare reports that cover climate-related financial risks in detail. The disclosures should be aligned with the TCFD recommendations and made available on the company’s website. Similarly to the accompanying SB 253, the first reports will be due in 2026, with reporting then taking place biennially.