United States · act

California SB 261 — Climate-Related Financial Risk Act

California SB 261

In forceApplies 2024-01-01Verified 2026-08-22

Scope

Entities doing business in California with >$500m revenue (insurers excluded)

Penalties

Up to $50k/year (stayed during injunction)

Last verified

2026-08-22

In plain language

What this law does

Biennial TCFD/ISSB-aligned climate-related financial risk reports with adaptation measures, published on company websites and a CARB docket. Enforcement is currently enjoined pending the Ninth Circuit challenge; CARB ran a voluntary docket Dec 2025–Jul 2026.

Formal requirements

What the law requires

Reviewed provisions grouped by practical purpose. Use the official text for the full legal context.

Who and what it covers

Entities doing business in California with revenue >US$500m (excl. insurers)
California SB 261 (Climate-Related Financial Risk Act) — California SB 261 (Climate-Related Financial Risk Act) · instrument-level citation

Disclosure requirements

Biennial climate-related financial risk report consistent with TCFD/ISSB (Dictionary termIFRS S2IFRS S2 is a sustainability-related financial disclosure standard focused on climate-related risks and opportunities.Read the full definition ) framework + measures adopted to reduce/adapt
California SB 261 (Climate-Related Financial Risk Act) — California SB 261 (Climate-Related Financial Risk Act) · instrument-level citation
first reports 1 Jan 2026 (CARB granted de facto flexibility to publish during 2026)
California SB 261 (Climate-Related Financial Risk Act) — California SB 261 (Climate-Related Financial Risk Act) · instrument-level citation

Enforcement

Penalties up to US$50,000 per reporting year
California SB 261 (Climate-Related Financial Risk Act) — California SB 261 (Climate-Related Financial Risk Act) · instrument-level citation

Required documents

Both laws administered by CARB
California SB 261 (Climate-Related Financial Risk Act) — California SB 261 (Climate-Related Financial Risk Act) · instrument-level citation
consolidated FAQs and reporting templates on CARB's Dictionary termClimate disclosureThe practice of companies and financial institutions publicly reporting climate-related risks, opportunities, governance, strategy and emissions — now shifting from voluntary frameworks to mandatory law.Read the full definition page. (Note: SB 131 (2025) merged the SB 253/261 program administration and extended CARB's Scope 3 deadline-setting authority.)
California SB 261 (Climate-Related Financial Risk Act) — California SB 261 (Climate-Related Financial Risk Act) · instrument-level citation