SB 253 California Climate Corporate Disclosure Is here.
Are you ready?
SB 253 Compliance Services for Companies That Do Business in California
California climate disclosure is here for companies that made $1B+ in total global revenue last year. Are you ready?
California Climate Disclosure Services | SB 253 & SB 261 Reporting Support
California’s corporate climate disclosure laws (The 200s) are in effect.
If your company does business in California and meets the revenue thresholds of SB 253 or SB 261, it’s time to comply.
VCA Green provides energy benchmarking, data verification, GHG calculations, and reporting to meet SB 253 requirements with accuracy.
Download the SB 253 | 261 Compliance Playbook
WHO MUST COMPLY
SB 253 | Climate Corporate Data Accountability Act
You must comply if ALL apply:
- $1B+ in annual total global revenue
- Doing business in California
You must disclose:
- Scope 1 greenhouse gas (GHG) emissions
- Scope 2 greenhouse gas (GHG) emissions
- Scope 3 greenhouse gas (GHG) emissions (phased)
Timing:
- 2025: Emissions data collection year (should already be complete or underway)
- August 10, 2026: Scope 1 & Scope 2 emissions reporting required
- August 10, 2027: Scope 3 emissions reporting begins
URGENT: You must collect 2025 emissions data now to report in 2026. Historical data is often not offered by utilities, potentially delaying compliance.
SB 261 | Climate-Related Financial Risk Reporting
You must comply if ALL apply:
- $500M+ in annual total global revenue
- Doing business in California
You must disclose:
- Climate-related financial risks
- Risk mitigation strategies
Timing:
- January 1, 2026* First report due
- Every two years thereafter
*NOTICE: The Ninth Circuit Court of Appeals issued a temporary injunction on November 18, 2025, halting enforcement of California’s SB 261 (does not affect SB 253). Covered entities may voluntarily report; however, are not currently required to comply with SB 261’s disclosure obligations until the litigation concludes or the injunction is lifted.
SB 253 | 261 ENFORCEMENT & PENALTIES
Applies to Both SB 253 and SB 261
Effective: August 10, 2026
- Penalties: Up to $500k per year for non-compliance
- Assurance: Third-party data verification is required starting in 2027
- 2027: Limited assurance required for Scope 1 and 2
- 2028: Limited assurance required for Scope 1, 2, and 3
- 2030: Reasonable assurance required for Scope 1 and 2 and limited assurance for Scope 3
- Deadline: SB 253 reports are due August 10, and SB 261 is voluntary and may be reinstated at any time.
(424) 422-9696
GET THE 2026 CALIFORNIA CLIMATE COMPLIANCE PLAYBOOK
A Step-by-Step Checklist for SB 253 & SB 261 Readiness
If you meet the $500M revenue threshold, the clock is already ticking on your 2026 reporting obligations. Download our short, practical guide covering:
- Who must comply
- Readiness checklist
- Compliance considerations
WHY COMPANIES SHOULD ACT NOW
- Reporting obligations have begun
- 2025 emissions data must be collected, historical data is difficult to obtain
- Preparing financial risk disclosures takes time
- Enforceable authority is active
- Penalties apply for non-compliance
HOW VCA GREEN SUPPORTS SB 253 COMPLIANCE
VCA Green delivers practical, defensible compliance solutions for companies subject to SB 253 and SB 261.
SB 253 COMPLIANCE SERVICES
Emissions Data & Reporting
- Scope 1 and Scope 2 emissions calculations
- Preparation for Scope 3 emissions reporting
- Portfolio-wide data management
Compliance Consulting
- Reporting aligned with CARB requirements
- SB 253 and SB 261 compliance management
Verification & Audit Readiness
- Documentation development and validation
- Prepare third-party assurance
Technology-Enabled Oversight
- Centralized dashboards for emissions and portfolio analyses
- Ongoing monitoring to support annual and further efficiencies
Sharyl Witte LaPorte, Rexford Industrial Realty, Inc.
VCA Green has been and continues to be proactive and very detailed in working on our behalf. Their team has integrated with us seamlessly and has added efficiency to our efforts.
TALK TO AN SB 253 SPECIALIST FOR CARBON ACCOUNTING AND AUDITING SERVICES IN CALIFORNIA
Start Your SB 253 Compliance Plan
If you haven’t prepared yet, it’s time. VCA Green can help you catch up and stay in compliance.
The Cost of Delay:
non-compliance penalties are up to $500k/year.
The real risk is regulatory exposure and market reputation. Your compliance status will be public data.
FAQ
Does SB 253 apply to private companies with $1B revenue?
Yes, SB 253 applies to all companies that do business in California who made over $1 billion in revenue in the previous fiscal year. Companies who made over $500 million in the previous fiscal year need to comply with SB 261.
How is revenue defined by CARB?
Per SB 219, the adopted California Air Resources Board implementation regulations for SB 253 and SB 261, “revenue” is defined using the California Revenue & Taxation Code definition of “gross receipts” under §25120(f)(2), as reported to the California Franchise Tax Board. Applicability is based on the reporting entity’s revenue for the prior fiscal year.
What is the penalty for missing the 2026 SB 253 deadline?
Failure to comply with California SB 253 will result in a $500,000 fine. For the first compliance year, the California Air Resources Board (CARB) is exercising enforcement discretion meaning as long as the reporting entity demonstrates good faith efforts, they will not be penalized.
Can I use my existing TCFD report for SB 261 compliance?
Yes. You may utilize the data and reports from other ESG-related programs that already exist within your organization. They must cover the basic requirements of SB 261 to comply.
What is third-party assurance and how does it apply to SB 253?
CARB requires entities reporting for SB 253 to contract an independent, third-party to conduct assurance of their compliance reports to verify that the entity’s GHG emissions data and processes are accurate. Data verification of emissions data plays a key role in fulfilling the assurance requirement for SB 253.
What are Scope 1, 2, and 3 GHG emissions?
Scope 1 emissions are emissions that the company emits from sources it owns or directly controls, such as emissions from on-site combustion at company buildings. Scope 2 emissions come from indirect sources, such as purchased electricity or steam. Scope 3 emissions measure emissions from the company’s entire supply chain. This includes emissions from production of purchased goods or the use of the company’s sold products. Identifying Scope 3 emissions sources can be hard to navigate, so it is often best to contract professional support.
Which scope emissions are reported?
Per SB 219, the adopted California Air Resources Board implementation regulations for SB 253 and SB 261, Scope emissions are defined as follows:
- “Scope 1 emissions” means all direct greenhouse gas emissions that stem from sources that a reporting entity owns or directly controls, regardless of location, including, but not limited to, fuel combustion activities.
- “Scope 2 emissions” means indirect greenhouse gas emissions from consumed electricity, steam, heating, or cooling purchased or acquired by a reporting entity, regardless of location.
- “Scope 3 emissions” means indirect upstream and downstream greenhouse gas emissions, other than scope 2 emissions, from sources that the reporting entity does not own or directly control and may include, but are not limited to, purchased goods and services, business travel, employee commutes, and processing and use of sold products.
How should my company begin SB 253 compliance?
SB 253 compliance begins with accurately tracking Scope emissions data, such as energy consumption in company buildings. Key information like historical utility data may not be saved, so conducting ENERGY STAR® benchmarking ensures the company is recording the data for their compliance reports.
VCA GREEN | Energy Code & Disclosure Compliance | Sustainability Consulting | Audits & (R)Cx | Certifications
VCA Green is a leading sustainability consulting firm offering comprehensive services across the building life cycle. We help commercial real estate owners comply with legislation, reduce their operating costs and increase property values by providing custom solutions to complex environmental challenges as well as ESG and sustainability goals.
WEBSITE BY Playa Creative