SB 253 & SB 261 Compliance
California Climate Disclosure Compliance
Navigate California's landmark climate disclosure laws with ECG's integrated compliance solutions. We provide turn-key support for both SB 253 (GHG emissions) and SB 261 (climate risk) to ensure you meet the 2026 deadlines.
California has enacted two groundbreaking climate disclosure laws—SB 253 and SB 261—creating the most ambitious corporate climate reporting requirements in the United States. With mandatory compliance, significant penalties, and the first reports due in 2026, preparation is critical.
ECG delivers an integrated, turn-key compliance package covering both laws, so your organization can stay compliant, credible, and competitive.
California's Two Climate Laws: A Snapshot
While both laws are overseen by the California Air Resources Board CARBhttps://ww2.arb.ca.gov/, they have distinct requirements.
SB 253: Climate Corporate Data Accountability Act
- Who: U.S. companies with annual revenue > $1 billion doing business in California.
- What: Annual disclosure of global Scope 1, 2, and 3 GHG emissions, following the GHG Protocol
- Verification: Requires independent third-party assurance.
- Penalty: Up to $500,000 per year.
SB 261: Climate-Related Financial Risk Act
- Who: U.S. companies with annual revenue > $500 million doing business in California.
- What: Biennial disclosure of climate-related financial risks physical and transition and adaptation strategies, aligned with the TCFD or ISSB S2 frameworks.
- Verification: No formal assurance mandate, but reports must be defensible.
- Penalty: Up to $50,000 per year.
Our Integrated Compliance Package
ECG provides a cohesive, one-stop solution to meet the requirements of both laws.
Applicability & Gap Assessment
We confirm which laws apply to your company and conduct a readiness review to identify compliance gaps.Carbon Accounting SB 253
Our team develops your complete Scope 1, 2, and 3 GHG inventories and prepares all documentation for independent assurance.Climate Risk Disclosure SB 261
We assess your physical and transition risks and document your adaptation and mitigation strategies in a TCFD-aligned report.Reporting & Publication
We manage the final steps, from filing emissions data with CARB to drafting the public climate risk report for your website.
Why Partner with ECG?
Integrated Expertise: We have deep knowledge of carbon accounting GHG Protocol and climate risk TCFD frameworks.
End-to-End Delivery: ECG manages the entire process, from data collection to final, investor-ready publication.
Beyond Compliance: We help you extract strategic value from your data to strengthen resilience, brand credibility, and investor confidence.
Key Compliance Deadlines
2025: Conduct readiness assessments, build your GHG inventory, and perform your climate risk analysis.
2026: First reports are due. SB 253 requires Scope 1 & 2 emissions disclosure; SB 261 requires the first climate risk report.
2027: First SB 253 Scope 3 emissions disclosure is due.
2030 & Beyond: Assurance level for Scope 1 & 2 emissions increases to reasonable assurance.
All Our Services at a Glance
Climate and Carbon Services
- Corporate Carbon Footprint Calculation
- Product Carbon Footprint Calculation
- Life Cycle Assessment
- Product Environmental Footprint
- Water Advisory Services
- Greenhouse Gas Verification
- Carbon Offset Consulting
- 45Q and 45V Tax Credits
- Clean Electricity Investment Tax Credit – Section 48E
- Carbon Border Adjustment Mechanism (CBAM)
- SB 253 Compliance & GHG Reporting Services
- SB 261 – Climate-Related Financial Risk Act
- California Climate Disclosure Compliance
Sustainability Reporting
- Materiality Assessment
- Double Materiality Assessments
- Materiality and SASB Reporting
- SASB Standards
- GRI Reporting
- CDP Consulting
- Task Force on Climate-Related Financial Disclosures (TCFD)
- Science Based Targets Initiative
- U.N. Sustainable Development Goals
- Net Zero Training and Workshops
- Environmental Product Declaration (EPD)
- Reduced Carbon Footprint Verification
- Recycled Content Verification