The agency simultaneously issued a survey to validate the list.
On September 24, 2025, the California Air Resources Board (CARB) published a list of entities that it believes will be subject to requirements under Senate Bill (SB) 253 and/or SB 261. The list serves as an initial reference point for companies with a nexus to California regarding their reporting obligations. CARB also issued a voluntary survey to solicit feedback regarding the accuracy of its list.
SB 253 requires companies to submit annual Scope 1, Scope 2, and eventually Scope 3 greenhouse gas (GHG) disclosures with assurance for companies with over $1 billion in total annual revenue. SB 261 requires biennial climate risk reporting aligned with existing frameworks for companies with over $500 million in revenue. Obligations under both laws begin in 2026, with the initial reporting deadline for SB 261 set for January 1. Scope 3 emissions disclosures will be required starting in 2027 for the prior fiscal year.
For an overview of these laws, see our Client Alert.
Purpose and Limitations of the List
CARB indicated at an August 21, 2025, workshop that it would compile and publish a list of companies likely subject to the climate disclosure laws. However, CARB cautions that the list is not dispositive — companies remain responsible for determining whether they fall in scope, regardless of inclusion on the list or outreach from CARB. The list does not account for potential exemptions under consideration by CARB.
Purpose and Limitations of the Survey
The eight-question survey aims to improve CARB’s data accuracy and to provide companies with an early opportunity to assess whether they may be subject to the climate disclosure laws. CARB encourages both unlisted entities that believe they may be subject to the laws as well as listed entities that believe they may qualify for an exemption to complete the survey.
Specifically, CARB encourages companies to complete the survey if they are:
- listed but qualify for a potential exemption;
- listed but should not have been;
- listed, though a parent company will be reporting;
- not listed but should have been;
- already disclosing emissions or climate-related financial risk that meet the standards of SB 253 or SB 261; or
- aware of companies that should have been listed but were not.
Participation is voluntary, and CARB indicates that there are no legal implications for companies that do not complete the survey. For companies that complete the survey, CARB offers no assurance that survey responses will be kept confidential, nor that responses will impact a company’s liability for noncompliance (e.g., eliminating or mitigating penalties for inaccurate reporting).
Next Steps
If a Company Is on CARB’s List
If a company is listed, CARB will expect submission of an SB 261 climate-related financial risk report by January 1, 2026, and an SB 253 emission report by a staff-proposed (but not yet finalized) deadline of June 30, 2026. See “Key Dates” below for more details.
If a Company Is Not on CARB’s List
If a company is not listed, it still may need to comply with SB 253 and/or SB 261. These laws apply to public or private entities that:
- are formed under US law (including the District of Columbia, or acts of Congress);
- exceed revenue of $500 million (for SB 261) or $1 billion (for SB 253); and
- “do business in California.”
CARB underscores that companies remain responsible for assessing whether they fall within the scope of the climate disclosure laws, irrespective of the list and communications with agency staff.
Key Dates
Based on public communications from CARB, the current timeline and remaining steps are:
On September 2, 2025, CARB published guidance on minimum disclosure requirements for inaugural SB 261 reports. CARB had planned to release a draft disclosure template for SB 253 for public feedback by the end of September 2025, but this template remains outstanding as of publication of this post.
Sample Compliance Strategy
CARB continues to develop regulations and build reporting infrastructure despite ongoing court challenges. Given the looming deadlines, the window for companies subject to these requirements to prepare for compliance is narrowing. Deferring action to await final regulations and/or litigation resolution may result in a time crunch and difficulties with assurance audits. As such, companies may benefit from considering the below checklist:
- Review CARB’s list to verify whether your company is included
- Confirm in-scope versus out-of-scope status based on place of incorporation, revenue, and nexus with California
- For SB 261: Establish governance, risk assessment, and disclosure processes
- For SB 253: Map value-chain emissions, select a calculation approach, and arrange for assurance providers
- Consider and prepare for engagement with CARB on rulemaking and/or reporting template feedback
