SB 261 explained
The Climate-Related Financial Risk Act (Stern, 2023), Health & Safety Code ยง 38533.
At a glance
- What
- A public report every two years on the company’s climate-related financial risks and what it is doing about them.
- Who
- U.S.-organized companies with over $500 million in total annual revenue that do business in California.
- Why
- To show investors and the public how climate change could affect a company’s finances. Read the background.
- How
- Not enforced right now: a court paused it in November 2025 while an appeal is decided. Voluntary reports can go to a CARB docket.
- Who: U.S. public and private companies that do business in California with annual revenues over $500 million. Source
- What: A biennial climate-related financial risk report and the measures adopted to reduce and adapt to those risks. Source
- Status: Enforcement enjoined by the Ninth Circuit on November 18, 2025 pending appeal. CARB will not enforce the January 1, 2026 deadline and will announce an alternate date after the appeal; voluntary submissions go to a CARB docket. Source
SB 261 does not itself require third-party GHG assurance; this site's assurance content concerns SB 253.