California SB 253 — Climate Corporate Data Accountability Act

California SB 253 requires any U.S.-based entity with annual revenues of $1 billion or more that does business in California to publicly disclose its greenhouse gas emissions. Scope 1 (direct emissions) and Scope 2 (purchased electricity and heat) disclosures are required beginning in 2026, covering 2025 data. Scope 3 emissions — the indirect emissions across a company's value chain, including supplier and customer activity — are required starting in 2027, covering 2026 data.

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The California Air Resources Board (CARB) is the implementing agency. CARB has indicated it will exercise enforcement discretion during the initial 2026 reporting cycle for companies that demonstrate good-faith compliance efforts. This does not suspend the law — it signals a pragmatic approach to the first year while companies build the data infrastructure required for defensible disclosure. The enforcement discretion period does not extend to Scope 3.

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The practical scope of SB 253 is broader than the $1 billion revenue threshold suggests. The law targets entities doing business in California, which in practice captures a large portion of the U.S. economy. Because SB 253 requires Scope 3 disclosure, it creates upstream and downstream pressure on every company in the supply chain of a covered entity. If your company is a supplier or customer of a company subject to SB 253, expect data requests.

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The first year requires collection of Scope 1 and 2 emissions for the full 2025 calendar year. Companies without existing emissions tracking programs should be building that infrastructure now.