Governance & Policy
California SB 261 — Climate-Related Financial Risk Act
California law requiring companies with over five hundred million dollars in revenue to publish biennial reports on climate-related financial risks and adaptation measures.
Definition
California Senate Bill 261, the Climate-Related Financial Risk Act, enacted in 2023, requires US entities with over five hundred million dollars in annual revenue doing business in California to publish, every two years, a report disclosing climate-related financial risk consistent with TCFD-style frameworks and the measures adopted to reduce and adapt to that risk.
Quick reference
At a glance
- Subject
- Governance & Policy
- Editorial status
- Editorial draft
- Definition status
- Emerging
- Last updated
- 19 August 2026
- Also known as
- SB 261 · California climate risk disclosure law
Overview
What it means
Climate-risk disclosure has arrived at state level for a broad tier of companies, although a Ninth Circuit injunction currently prevents enforcement while the legal challenge proceeds.
How it is used
Companies prepare TCFD-aligned risk reports and monitor the Ninth Circuit litigation; CARB accepts voluntary submissions in the interim.
Why it matters
Together with SB 253 it forms California's climate accountability package, the de facto US disclosure regime in the absence of a federal rule.
Current status note
Status checked on 19 August 2026: a Ninth Circuit injunction prevents enforcement pending appeal. CARB says it will announce a reporting deadline if the injunction is lifted.
Review
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