CA Climate Rule is On Schedule

After a long period of not knowing whether and how the one of the most significant state issued climate disclosure rules would proceed, the California Air Resources Board held its first public meeting on the rule on June 2nd, 2025. The main takeaway from the 3.5 hour long meeting is that the CA Climate Rule is on schedule. This means that companies that meet the requirements will need to start reporting per 2026.

Two climate laws were approved back in 2023, SB 253 and SB 251. These two laws were combined in 2024 to ease its administration. Together the laws require:

• Companies with revenue >$1bn that are doing business in CA to report scope 1 and 2 emissions by 2026, based on 2025 data

• Companies with revenue >$500M that are doing business in CA to report their material climate risks by 2026 and every second year after that

In terms of how to report, the CARB is considering the International Sustainability Standards Board S2. Further, the CARB confirmed that inaccurate or incomplete reporting will not be penalized if done in good faith.

Source: Mohin, T. (June 6, 2025)

Photo credit: Unsplash, Maarten van den Heuvel