With the passage of California climate disclosure laws SB 253 and SB 261, thousands of companies will soon be required to report their greenhouse gas (GHG) emissions and disclose climate-related financial risks. Compliance isn’t optional, and deadlines are fast approaching. Environ is here to help. Below, we answer your most pressing questions about these new regulations and how we support your journey toward climate compliance and resilience.
What are SB 253 and SB 261?
SB 253 (Climate Corporate Data Accountability Act) requires companies with over $1 billion in annual revenue doing business in California to publicly disclose their Scope 1, 2, and 3 greenhouse gas emissions.
SB 261 (Climate-Related Financial Risk Act) requires companies with over $500 million in annual revenue to disclose climate-related financial risks and mitigation strategies, aligned with frameworks like the Task Force on Climate-related Financial Disclosures (TCFD).
Who is affected by these laws?
Any U.S. company doing business in California and meeting the revenue thresholds must comply, regardless of where the company is headquartered. This includes public and private companies across industries such as healthcare, real estate, manufacturing, food, and agriculture.
What are the key compliance deadlines?
SB 253: Scope 1 & 2 emissions disclosure – 2026 (for 2025 data)
SB 253: Scope 3 emissions disclosure – 2027 (for 2026 data)
SB 261: Climate-related financial risk disclosure – January 1, 2026
What are the penalties for non-compliance?
Fines can reach up to $500,000 for failing to comply with SB 253 and $50,000 for SB 261. But beyond fines, reputational, investor, and stakeholder risks make proactive compliance even more critical.
What are Scope 1, 2, and 3 emissions?
Scope 1: Direct emissions from owned or controlled sources
Scope 2: Indirect emissions from purchased electricity or energy
Scope 3: All other indirect emissions (e.g., supply chain, business travel, product use)
Scope 3 is often the most complex and most scrutinized portion of GHG reporting.
What if we don’t have a sustainability team or internal expertise?
You’re not alone. Many companies lack the internal capacity to meet these requirements. Environ offers modular support, from gap assessments to full program delivery, designed to meet you where you are in your journey, and scale with your needs.
How can Environ Energy help us comply with California Climate Disclosure Laws?
Environ offers end-to-end support, including:
- GHG Emissions Accounting: Scopes 1–3 inventories, materiality assessments, and tracking systems
- Climate Risk Assessment: Physical and transition risk analysis, scenario modeling, and GIS-enabled risk maps
- Disclosure Gap Analysis: Readiness scorecards, governance assessments, and prioritized action plans
- Assurance Support: Audit-ready documentation and coordination with third-party verifiers
- Transition Planning: SBTi-aligned targets, abatement strategies, and supplier engagement frameworks
We offer fixed-fee pricing, sector-specific expertise, and an embedded partnership model to help you build long-term climate resilience, not just check a box.
What industries does Environ specialize in?
We bring deep climate and operational expertise across all sectors including:
- Healthcare: Decentralized data, climate impacts on resilience, and nonprofit compliance risks
- Real Estate: Portfolio-wide emissions and risk analysis for asset managers and REITs
- Manufacturing: Facility-level emissions, supplier data, and capital risk planning
- Food and Agriculture: Scope 3 supply chain emissions, nature-based solutions, and traceability
What makes Environ different from other service providers?
- We give you access to a team that includes former Chief Sustainability Officers (CSOs) and ESG leaders.
- Our clients enjoy an integrated delivery of services, rather than multiple, disconnected vendors.
- You have long-term partners, as we work as an extension of your team.
- Our outputs are designed for decision-makers, and auditors, so you can clarify and more complex reports where necessary.
- Enjoy predictable pricing, fixed-fee models with no surprise costs.
When should we start preparing for California Climate Disclosure Laws?
Now. Laying the groundwork, including data collection, governance structures, and climate risk frameworks takes time. Early action not only ensures compliance with California climate disclosure laws but also positions your business for strategic advantage and stakeholder trust.
We are also offering early compliance discounts for companies that engage with us before August.
Ready to Act?
Whether you’re behind the curve or already on your way, Environ can guide your journey from first steps to full disclosure and transition planning. Let’s build your climate strategy together.
