On September 24, 2025, the California Air Resources Board (CARB) released a preliminary list of companies that it believes may fall within the scope of California’s climate disclosure laws, SB 253 (greenhouse gas emissions reporting) and SB 261 (climate-related financial risk disclosures). CARB emphasized that the list is both preliminary and non-exhaustive: companies not appearing may not be exempt, and those included may be subject to exemptions or be listed in error. CARB has also published a voluntary survey for companies that believe they were mistakenly included on the preliminary list, qualify for an exemption, or are uncertain about whether they should be covered.
SB 261’s first reporting deadline is January 1, 2026, and CARB has begun releasing program materials to support compliance. Determining applicability involves a fact-specific analysis, including revenue thresholds and whether an entity “does business” in California, among other considerations. CARB provided insight into its approach to identifying covered entities in an August 21, 2025 presentation.
Whether or not your company appears on CARB’s preliminary list, MoFo’s environmental team is available to help assess coverage under SB 253 and SB 261, evaluate any potential errors in the listing, and develop a practical compliance plan ahead of the upcoming deadlines.