Summary
Details
- California
SB-253 is a binding state law requiring mandatory greenhouse-gas disclosures from large companies operating in California.
Criteria:
Applies to all public or private companies with over 1 billion USD in annual worldwide revenue that do business in the State of California.
Applies regardless of where the company is headquartered.
Covers full GHG reporting: Scope 1, Scope 2 and Scope 3 emissions, along with third-party assurance requirements.
Exemptions and Flexibility:
Not every business is covered; companies below the 1 billion USD revenue threshold are fully exempt (so no reporting obligation applies to them).
Some transitional flexibility may apply during initial years for Scope 3 reporting and methodologies, depending on guidance issued by CARB.
Non-California companies that do not “do business” in the state are outside the scope.
Assurance requirements ramp up gradually, allowing companies time to build systems before reasonable-assurance standards apply.
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What’s Required
Companies must:
Build full corporate GHG inventories
Collect global supply-chain data for Scope 3
Follow GHG Protocol standards
Undergo third-party assurance
Submit annual emissions to CARB’s digital platform
Important Deadlines
(Carried from final legislative amendments)
Scope 1 & 2 reporting starts first (initial phase).
Scope 3 reporting follows one year later.
Assurance requirements increase over time (limited → reasonable).
Current Status
SB-253 is a law, and CARB is developing detailed regulations. Companies are preparing data-collection systems ahead of formal deadlines.
Penalties for Non-Compliance
Administrative penalties for failure to report or misreporting
Fines up to tens of thousands of dollars per year for non-filing
Reputational risks due to the public disclosure database
Additional enforcement actions by CARB for persistent non-compliance
Examples of Known Violations
As of 2025, no violations or penalties are publicly recorded because reporting deadlines have not yet begun. Companies are in the preparation phase.
Conclusions
California SB-253 is one of the world’s most influential climate-disclosure laws. Making Scope 3 emissions mandatory strengthens transparency, investor trust, and corporate climate accountability. Its impact will extend far beyond California and shape global corporate sustainability practices.
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