California's Climate Disclosure Laws – Initial Implementing Regulations Approved

On February 26, 2026, the California Air Resources Board (CARB) voted to approve adoption of the initial regulations CARB proposed in December 2025 to implement California's climate disclosure laws under SB 253  (requires U.S.-based entities with more than $1 billion in annual revenue that do business in California to annually report Scope 1 and Scope 2 greenhouse gas (GHG) emissions beginning in 2026, and Scope 3 GHG emissions beginning in 2027) and SB 261 (requires U.S.-based entities with more than $500 million in annual revenue that do business in California, to biennially report their climate-related financial risk). The Office of Administrative Law must approve the proposed regulations for them to become effective.