SB 253 and SB 261

SB 261 - What it requires

SB 261 mandates that companies doing business in California with annual revenues over $500 million prepare and publish disclosures on climate-related financial risks and opportunities, beginning in 2026, on a biennial basis. Download Guide

The required disclosures must be aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) framework or IFRS S2, and must cover:

Governance

Definition and documentation of how the organization oversees climate-related risks and opportunities including:

Clear roles and responsibilities for management
Board-level oversight and accountability (where applicable)

A man sitting at a table in his suit, pointing at a TV with different graphs.

Strategy

Explanation of the actual and potential impacts of climate risks and opportunities on the business, covering:

Identified short-, medium-, and long-term risks and opportunities
How these factors influence strategy, operations, and financial planning
A qualitative discussion of how resilient the strategy is under future climate scenarios

Risk Management

Description of how climate-related risks are identified, assessed, and managed across the organization, and how these processes are integrated into the broader risk management framework.

Metrics & Targets

Disclosure of the metrics and targets used to track climate-related risks and opportunities, including the performance indicators, reduction measures, and adaptation strategies that demonstrate progress over time.

SB 261 - Compliance

How we help you comply

1.

Identify Risks and Opportunities

We begin by mapping your value chain to see where your operations are most exposed. Together with your team, we identify the most material climate-related risks and opportunities across sites and business units.

4.

Go Beyond Compliance with Scenario Analysis

While scenario analysis is not required under SB 261, it is strongly recommended. We can perform climate scenario modeling to help you understand how risks and opportunities may evolve under different futures.

2.

Build Actionable Data from the Ground Up 

Many organizations don’t yet have TCFD or IFRS S2 data in place. Through structured workshops and assessments, we help you capture and organize the information needed for SB 261 compliance.

5.

Deliver SB 261-Aligned Reporting

Finally, we prepare a clear, disclosure-ready climate risk and opportunities report. It includes your chosen framework, required disclosures, and, where needed, explanations of omissions with plans for future alignment.

3.

Quantify the Financial Impact

Our experts work alongside your finance team to assess the potential operational and financial consequences if identified risks materialize, turning qualitative risks into measurable business impacts that stakeholders can trust.

Hear from our clients

"CDP has worked with CEMAsys for years as a CDP Silver climate change and SBT consultancy partner. Their expertise supports companies in creating robust strategies for transitioning their business models toward a 1.5°C, net-zero future."

"The process with CEMAsys (two score checks) helped us understand our gaps and where to put our efforts. The advice helped us in improve our score from D to a B in Climate, through greater understanding in the framework and our gaps. Furthermore, CEMAsys offered expert advice throughout the process."

“Since we began working with CEMAsys on CDP, we’ve seen a clear improvement in our rating — but more importantly, in how we link reporting to our decarbonization strategy."

SB 253 - What it requires

SB 253 requires California companies with annual revenues over $1 billion to publicly report their greenhouse gas (GHG) emissions beginning in 2026. Disclosures must include:

Scope 1 emissions

Direct emissions from company operations

Scope 2 emissions

Indirect emissions from purchased energy

Scope 3 emissions

Indirect emissions across the value chain (suppliers, logistics, products, etc.).

Accurate reporting is critical, as disclosures will be publicly accessible and stakeholders increasingly expect transparency in emissions data.

SB 253 - Compliance

How we help you comply

1.

Centralized Carbon Accounting

Our carbon accounting system captures and organizes Scope 1, 2, and 3 emissions data across your organization and supply chain, ensuring consistency and audit-readiness.

3.

Turn Data into Actionable Insights

Beyond reporting, we analyze emissions data to identify reduction opportunities, enabling strategic decisions to reduce your carbon footprint while maintaining business performance.

2.

Verification Support

We guide you through the verification process, helping you ensure your data is accurate and meets third-party standards, providing confidence to regulators, investors, and stakeholders.

4.

Seamless Disclosure

We produce final reports aligned with SB 253 requirements, including methodology, scope, and assumptions, so your company can publish clear, compliant, and credible emissions disclosures.

Key compliance milestones

SB 253 and SB 261 set the most ambitious U.S. climate disclosure rules, with the first deadline on January 1, 2026. Non-compliance risks $50,000 fines per year and public scrutiny. Acting now ensures compliance, protects your brand, and shows leadership in climate transparency.

Act now to stay ahead - secure compliance, avoid penalties, and position your company as a leader in climate transparency.

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Hear from our customers

"The collaboration with CEMAsys has given us a much more clear and structured approach to our sustainability reporting. We’ve had great experiences with both the tool and the service we’ve received. The system is easy to navigate in and has an appealing and simple layout, and the services from CEMAsys have been an invaluable support"

Christoffer Brask

HSEQ Manager, Vestia Construction Group

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