SB 253 & SB 261 Deadlines Are Closer Than You Think

New California climate disclosure laws require companies to reportemissions and financial climate risks by 2026. CEMAsys helps you staycompliant, confident, and ahead of the curve.
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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 261


What It Requires

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

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 overseesclimate-related risks and opportunities, including:

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

Strategy

Explanation of the actual and potential impacts of climate risks and opportunitieson 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 themetrics and targets used to track climate-related risks and opportunities,including the performance indicators, reduction measures, and adaptationstrategies that demonstrate progress over time.

Over 800 companies
work with CEMAsys

Christoffer Brask
HSEQ Manager, Vestia Construction Group

“CEMAsys has given us a much more structured approach to sustainability reporting. The system is easy to use, and their team has been incredibly helpful—especially as we navigated ESRS for the first time.”

Dorthe Aaboe Kallestrup
Head of ESG at IBF A/S

“Over the past 10 years, I have introduced CEMAsys to three different workplaces—and there’s a reason for that. The modules are easy to use, and getting assistance from our consultant, whether by email or phone, is always hassle-free.”

Arnstein Moy
Head of Sustainability, OneCo

“CEMAsys has given us the tools and expertise to move from manual tracking to a structured ESG framework, making compliance and sustainability efforts more efficient.”

Irene Brenden
Sustainability Manager, Jernia

“My personal experience with CEMAsys has been exceptional. They’ve listened, acknowledged my perspectives, and challenged me to think differently."

Sandy S. Schrøder
Head of ESG reporting, Reitan Retail

"We highly recommend working with CEMAsys. Their expertise, proactive approach, and commitment to sustainability have been invaluable in our journey towards a more sustainable future. It is truly a great collaboration"

Carina Jönsson
Group HSE Director, Cloetta

“CEMAsys makes life easy for everyone involved in the sustainability / ESG data management and reporting”

FAQ
Who needs to report to CDP?
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Companies requested by investors, customers, or industry initiatives often report to CDP. Voluntary reporting is also encouraged to enhance transparency. Many organizations use CDP to align their environmental strategies and ambitions with best practices, demonstrating leadership in sustainability and risk management. Reporting to CDP can also improve access to capital, strengthen brand reputation, and meet evolving regulatory expectations.
Can small or privately held companies report to CDP?
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Yes! While CDP primarily targets large companies, any organization can voluntarily disclose. Many private companies use CDP to prepare for future regulations and stakeholder expectations.
How does CDP scoring work?
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CDP scoring is designed to measure transparency, awareness, management, and leadership in environmental sustainability. The scoring process, which is tailored to specific industries to account for sector challenges, aggregates individual question scores into an overall grade. CDP assigns each respondent a score from A to D-. Organizations that are requested but do not report to CDP receive an F.
How can my company improve its CDP Climate score?
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Improving your CDP score depends on your company’s current actions and long-term strategy. CEMAsys conducts detailed gap analyses to identify where points are lost and why, helping clients enhance their disclosures for the next reporting cycle.

Key areas that CDP heavily weights and that companies should focus on include:

Transparent disclosure of energy use and GHG emissions across all scopes: Accurate data reporting on Scope 1, 2, and 3 emissions is critical
Science-based emission reduction targets: Setting targets aligned with the Paris Agreement.
Supplier engagement: Working with suppliers and value chain partners to track and reduce negative impacts can significantly boost your score.
Climate risk integration: Embedding environmental-related impacts, risks, and opportunities into governance, strategy, and financial planning.
Use of renewable energy: Demonstrating commitments to clean energy sources improves performance.

By addressing these areas, companies can strengthen their CDP score while building a more resilient and responsible business strategy.
What are the CDP disclosure requirements?
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While CDP disclosures are voluntary, companies are asked to report on key environmental metrics, sustainability initiatives, and business strategies. Organizations will be asked to disclose environmental metrics, including Scope 1, 2, and 3 emissions, environmental impacts, risks and opportunities (IROs), and emission reduction targets. Reporting also covers governance, stakeholder engagement, and the integration of IROs into strategic business decisions. Additionally, CDP includes Forest and Water Security disclosures, requiring companies to report on deforestation risks, water usage, and conservation efforts.
What is the connection between CDP and SBTi?
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The SBTi provides a framework for companies to set emission reduction targets aligned with the Paris Agreement. It was formed through a collaboration between CDP and several other leading sustainability organizations.

Companies that commit to SBTi-approved targets demonstrate leadership in climate action and can achieve higher CDP scores when reporting their targets and progress on the platform.
Is external verification a requirement?
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Emissions verification is not strictly required but is necessary to reach leadership scoring levels (A to A-), as it ensures credibility and transparency.

To ensure your data is verifiable and auditable, implement a consistent data collection process and create an audit trail that includes who uploaded data and when.
Does CDP take CSRD requirements into account?
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Yes, CDP aligns with the Corporate Sustainability Reporting Directive by incorporating key disclosure requirements, making it a useful tool for companies preparing for EU compliance.

Reporting through CDP helps organizations streamline data collection and enhance transparency while aligning with the CSRD’s standardized ESG disclosures.
What happens after we submit our CDP response?
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CDP reviews submissions and assigns a score (A to D-) based on completeness and quality. A high score can enhance brand reputation, build investor confidence, and demonstrate climate leadership. CEMAsys supports clients in analyzing their results and developing targeted strategies for future reporting success.
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