Scope
Entities doing business in California with >$500m revenue (insurers excluded)
United States · act
California SB 261 — Climate-Related Financial Risk Act
California SB 261
In forceApplies 2024-01-01
Penalties
Up to $50k/year (stayed during injunction)
Last verified
2026-08-22
In plain language
What this law does
Biennial TCFD/ISSB-aligned climate-related financial risk reports with adaptation measures, published on company websites and a CARB docket. Enforcement is currently enjoined pending the Ninth Circuit challenge; CARB ran a voluntary docket Dec 2025–Jul 2026.
Core obligations
Biennial climate-financial-risk report (TCFD/ISSB framework); scenario and adaptation content; website + docket publication
Dictionary
Terms defined in this law
- Entities doing business in California with revenue **>US$500m** (excl. insurers).California SB 261 (Climate-Related Financial Risk Act)
- Biennial **climate-related financial risk report** consistent with **TCFD/ISSB (IFRS S2)** framework + measures adopted to reduce/adapt; first reports **1 Jan 2026** (CARB granted de facto flexibility to publish during 2026).California SB 261 (Climate-Related Financial Risk Act)
- Penalties up to **US$50,000** per reporting year.California SB 261 (Climate-Related Financial Risk Act)
- Both laws administered by **CARB**; consolidated FAQs and reporting templates on CARB's climate disclosure page. (Note: SB 131 (2025) merged the SB 253/261 program administration and extended CARB's Scope 3 deadline-setting authority.)California SB 261 (Climate-Related Financial Risk Act)
Claims
Claims connected to this source
Reviewed claim links will appear here.