By Jacqueline Rhoades, Partner and Head of Strategy, March 2025
Companies generating $500MM or more in revenue will soon face mandatory carbon emissions and climate risk reporting in California (SB 253 and SB 261). Over 5,000 businesses— even those without a physical presence in the state—will be impacted, and the clock is ticking.
Most companies don’t realize how much time it takes to collect, validate, and analyze emissions and climate risk data. When deadlines are tight, a missing data point can mean the difference between compliance and failure.
For example: In a recent project call, we identified two critical gaps in a client's GHG emissions data. The person responsible for the missing data was on extended leave, and no one knew how to retrieve the information. This put the entire reporting timeline in jeopardy—an all-too-common scenario for companies unprepared for the complexity of climate disclosures.
A recent amendment to SB 261 and SB 253, SB 219, has introduced more flexibility into the original CA reporting requirements —but don’t be fooled into thinking you have extra time to prepare. The complexity of data collection and reporting still requires immediate action. Here are some of the biggest updates to the original proposals:
Third Economy has helped companies like yours navigate complex reporting regulations. We can help you get ahead of SB 253 and SB 261 (and all of SB 219's amendments) before the deadlines put your business at risk.
Jacqueline Rhoades, Partner, Third Economy
Jacqueline.rhoades@thirdeconomy.com
Disclaimer: The information provided does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.
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