U.S. California Climate-Related Disclosure Regime (SB 253 / SB 261)

The California Air Resources Board (CARB) advanced its rulemaking for the greenhouse gas emissions reporting regulations under SB 253 during 2026, completing an initial rulemaking that reset the previously anticipated reporting deadline. In the district court proceedings, plaintiffs (including the U.S. Chamber of Commerce) had raised claims that the law violated the dormant commerce clause and the federal Supremacy Clause; both claims have already been dismissed. As a result, the sole issue now being litigated on appeal (before the Ninth Circuit, in Chamber of Commerce v. Sanchez) is narrowly limited to whether mandating corporate emissions disclosure violates the First Amendment's prohibition on compelled speech. Oral arguments were held on January 9, 2026, but as of August 2026, a ruling remains pending. CARB has repeatedly stated that, even while the rulemaking process was ongoing, the SB 253 reporting obligation itself remained legally valid and that the compliance deadline was unchanged. Covered companies (those doing business in California with total global annual revenues exceeding $1 billion) need to prepare on the premise of an annual disclosure obligation for Scope 1 and 2 emissions beginning in 2026, and for Scope 3 emissions beginning in 2027.