Week of June 22

Breathing Room for Climate Disclosures: California Proposes Three-Month Extension for SB 253 Reporting

With less than 50 days left on the clock before the first wave of mandatory climate disclosures were due, companies doing business in California that were in a deadline crunch can take a brief sigh of relief. The California Air Resources Board (CARB) has announced a proposal to delay the first greenhouse gas (GHG) emissions reporting deadline under Senate Bill 253 by three months.

If finalized, the deadline for reporting Scope 1 and Scope 2 GHG emissions will move from August 10, 2026 to November 10, 2026.

What is SB 253?

Formally known as the Climate Corporate Data Accountability Act, SB 253 mandates annual public disclosures of Scope 1, 2, and 3 GHG emissions. The law applies to any U.S.-organized entity doing business in California with total annual revenues exceeding $1 billion.

While its companion bill, SB 261 (which requires climate risk reporting), is currently paused under a Ninth Circuit injunction pending appeal; SB 253, by contrast, remains in effect and enforceable.

Why the Delay?

The proposed extension is a practical byproduct of CARB refining the law’s fine print. CARB plans to introduce limited modifications to clarify specific reporting requirements.

To make these adjustments, CARB is initiating a forthcoming 15-day public comment period. Because this additional step will push back the final approval of the regulatory package, CARB has proposed the three-month deferral to give businesses an appropriate window to comply once the final rules are set. As a reflection of this process, CARB has officially updated its website to show that the initial regulations and rulemaking packages previously submitted to the California Office of Administrative Law on May 20 have been withdrawn for revision and will be resubmitted.

What’s Next for Businesses?

While an extra 90 days provides welcome breathing room, companies should not halt their compliance preparations. The details of the specific regulatory clarifications and the formal dates for the 15-day public comment period are expected soon. Affected corporations should keep a close eye out for these forthcoming announcements to understand how the final text might impact their data collection and reporting strategies before the new November 10th target.

Frequently asked questions

SB 253 is California’s Climate Corporate Data Accountability Act, requiring companies with $1 billion or more in annual revenue that do business in California to publicly disclose Scope 1 and Scope 2 greenhouse gas emissions. The law uses the GHG Protocol as its required methodology. First reports are due August 10 of this year for Scope 1 and 2 data, with Scope 3 reporting requirements following in subsequent years.

GHG Protocol is the internationally recognized standard for measuring and reporting greenhouse gas emissions. For SB 253, companies must calculate their Scope 1 and Scope 2 emissions using either the financial control or operational control consolidation approach defined by GHG Protocol. Choosing the right boundary for your organization is one of the first — and most consequential — decisions in building a compliant emissions inventory.

No. SB 253 is California state law and operates independently of any federal rulemaking. Companies that paused their sustainability reporting programs in anticipation of federal relief still face the California deadline. CARB has indicated enforcement discretion for good-faith first-year filers, but the August 10 deadline is not affected by federal action.

The finalized ESRS uses GHG Protocol-aligned methodology for emissions reporting — the same standard SB 253 requires. Companies building their carbon accounting infrastructure around GHG Protocol today are simultaneously positioning themselves for CSRD readiness if they have European operations or EU-headquartered customers. The frameworks are not identical, but the foundational data layer is shared.

Without a global maritime carbon standard, companies importing by sea face a growing patchwork of regional carbon pricing rules. EU ETS already covers international shipping; the UK is expanding coverage. This increases both the cost and complexity of Scope 3 Category 4 (upstream transportation) calculations. Companies should document their transport emissions methodology now, before regional rules create additional reporting obligations.

Global energy transition investment reached $2.3 trillion in 2025, up 8% year over year, with solar, EVs, and grid spending leading. Combined with IRENA’s confirmation that solar-plus-storage is now cost-competitive with fossil fuels on a 24/7 basis, the data signals that renewable energy is no longer a sustainability-premium decision — it’s an increasingly standard capital allocation choice.

The most durable approach is to build your emissions inventory against the GHG Protocol standard first, then map it to the frameworks that apply to your specific jurisdictions and customer requirements. A GHG Protocol-aligned footprint can serve SB 253, inform CSRD readiness, and support CDP reporting, EcoVadis assessments, and SBTi target-setting — reducing the need to recollect and reformat data for each new requirement.

Corinne Hanson headshot

Corinne Hanson is VP of ESG Strategy at Greenplaces, the all-in-one sustainability platform helping businesses turn climate goals into results. She brings over a decade of experience in corporate sustainability, including leadership roles at SH Hotels & Resorts, Global Footprint Network, and the NRDC. A George Washington University grad with degrees in International Relations and Philosophy, Corinne spends her time outside the office the same way she spends it inside: trying to keep the planet in good shape.

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