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California Mandates Climate Risk Reports by 2026

9/5/2025

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Summary

Story summary

The California Air Resources Board (CARB) issued draft guidance for the Climate-Related Financial Risk Act (SB 261).
Companies must submit climate risk reports by January 1, 2026, following the TCFD framework.
Firms with revenues over $500 million must disclose climate risks and adaptation strategies.
Initial reports can include subsidiaries without separate disclosures and do not require emissions data.
CARB prioritizes investor decision-usefulness in these disclosures.

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Story summary

The California Air Resources Board (CARB) issued draft guidance for the Climate-Related Financial Risk Act (SB 261).
Companies must submit climate risk reports by January 1, 2026, following the TCFD framework.
Firms with revenues over $500 million must disclose climate risks and adaptation strategies.
Initial reports can include subsidiaries without separate disclosures and do not require emissions data.
CARB prioritizes investor decision-usefulness in these disclosures.