California Extends Deadline for Climate Reporting Law

The California Air Resources Board (CARB) has announced a one-year reprieve on enforcement of the state's Climate Corporate Data Accountability Act (SB 253), allowing large companies until 2026 to begin reporting their greenhouse gas emissions without penalties for incomplete data, provided they demonstrate good faith efforts to comply. The law requires companies with revenues over $1 billion doing business in California to disclose Scope 1, 2, and 3 emissions, with Scope 1 and 2 reporting starting in 2026 and Scope 3 in 2027. Governor Gavin Newsom expressed concerns about the feasibility of the timeline but his proposed delays were not included in the final bill. The decision to ease enforcement has drawn criticism from Senator Scott Wiener, a co-sponsor of the legislation, who argues it undermines compliance with the law. Additionally, companies are preparing for compliance with California's Climate Risk Disclosure Law (SB 261) set to take effect in 2024, which mandates reporting on climate-related financial risks for businesses with revenues over $500 million. This comprehensive regulation positions California as a leader in addressing climate change impacts on corporate practices.