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California's Climate Disclosure Laws
SB 253 & SB 261 Compliance Made Simple with Clearyst°
Take the complexity out of SB 253 and SB 261 reporting. Give your team the tools to measure, manage, and disclose with confidence—so compliance becomes a catalyst for progress, not a burden.
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Understanding SB 253 & 261
California’s SB 253 and SB 261 are groundbreaking climate disclosure laws reshaping how businesses approach emissions, risk, and transparency. At Clearyst, we help companies measure, manage, and disclose with confidence - turning regulatory requirements into opportunities for innovation, growth, and leadership.
Climate corporate data accountability act
SB 253
SB 253 requires large corporations to disclose their GHG emissions publicly across three scopes:
Scope 1:
Direct emissions from owned or controlled sources.
Scope 2:
Indirect emissions from purchased electricity, steam, heating, and cooling.
Scope 3:
All other indirect emissions in a company’s value chain, including supply chain and product lifecycle emissions.
Who does SB 253 apply to?
SB 253 applies to companies with annual revenues exceeding $1 billion that do business in California. These companies must submit annual emissions reports verified by a third party.
Who does SB 261 apply to?
SB 261 applies to companies with annual revenues exceeding $500 million doing business in California. These companies must submit biennial reports detailing their climate-related financial risks and mitigation strategies.
Why SB 253 matters
SB 253 goes beyond disclosure - it sets the stage for how investors, customers, and regulators evaluate your company’s performance. Meeting these requirements builds trust and positions your business as a forward-thinking sustainability leader.
Climate-related financial risk disclosure act
SB 261
SB 261 focuses on financial risk transparency. It requires companies to:
•
Assess and disclose climate-related financial risks.
•
Report on strategies to mitigate these risks and adapt to climate change.
Why SB 261 matters
SB 261 pushes companies to integrate climate risk into strategic planning. Doing so not only meets regulatory requirements but also strengthens resilience, reduces exposure, and can reveal new opportunities for innovation.
Climate corporate data accountability act
SB 253
SB 253 requires large corporations to disclose their GHG emissions across three scopes publicly:
Scope 1:
Direct emissions from owned or controlled sources.
Scope 2:
Indirect emissions from purchased electricity, steam, heating, and cooling.
Scope 3:
All other indirect emissions in a company’s value chain, including supply chain and product lifecycle emissions.
Who does SB 253 apply to?
SB 253 applies to companies with annual revenues exceeding $1 billion that do business in California. These companies must submit annual emissions reports verified by a third party.
Why SB 253 matters
SB 253 goes beyond disclosure - it sets the stage for how investors, customers, and regulators evaluate your company’s performance. Meeting these requirements builds trust and positions your business as a forward-thinking sustainability leader.
Climate-related financial risk disclosure act
SB 261
SB 261 focuses on financial risk transparency. It requires companies to:
Assess and disclose climate-related financial risks.
Report on strategies to mitigate these risks and adapt to climate change.
Who does SB 261 apply to?
SB 261 applies to companies with annual revenues exceeding $500 million doing business in California. These companies must submit biennial reports detailing their climate-related financial risks and mitigation strategies.
Why SB 261 matters
SB 261 pushes companies to integrate climate risk into strategic planning. Doing so not only meets regulatory requirements but also strengthens resilience, reduces exposure, and can reveal new opportunities for innovation.
How Clearyst° Can Help Your Business
At Clearyst, we specialize in simplifying compliance with complex environmental regulations like SB 253 and SB 261. Our comprehensive services are designed to help your business not only meet these requirements but also improve your sustainability performance. Here’s how we can support you:
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GHG Emissions Measurement & Reporting
Accurate Data Collection
Clearyst and our verified network of partners will help you gather and organize emissions data across all three scopes (Scope 1, 2, and 3).
Third-Party Verification
We’ll ensure your reports meet regulatory standards.
Streamlined Reporting
We simplify the process of submitting your emissions data to regulatory authorities.
Climate Risk Assessment & Disclosure
Risk Identification
We analyze your operations to identify climate-related financial risks.
Mitigation Strategies
Our experts work with you to develop actionable plans and set up corporate governance to reduce risks and adapt to climate challenges.
Comprehensive Reporting
We craft clear, compliant reports that align with SB 261 requirements.
Sustainability Strategy Development
Beyond Compliance
Develop sustainability policies and procedures aligned with your broader business objectives.
Supply Chain Optimization
Our tools and expertise help you reduce Scope 3 emissions by engaging suppliers and improving efficiency.
Stakeholder Engagement
We assist in communicating your sustainability efforts to investors, customers, and regulators.
Ongoing Support & Improvement
Regulatory Updates
Stay ahead of evolving regulations with our real-time updates and expert guidance.
Performance Tracking
Our platform provides insights into your progress, helping you set and achieve ambitious sustainability goals.
Custom Solutions
Every business is unique. We tailor our services to meet your specific needs and industry requirements.
Why Choose Clearyst?
Expertise
You Can Trust
Our team of sustainability and compliance experts has a proven track record of helping businesses navigate complex regulations.
End-End
Solutions
We handle everything from data collection to reporting and strategy development.
Future
Focused
We don’t just help you comply. We help you lead in sustainability, building resilience and trust with your stakeholders.
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Get Started Today
Navigating SB 253 and SB 261 doesn’t have to be overwhelming. With Clearyst by your side, you can achieve compliance, reduce your environmental impact, and use sustainability as a strategic business advantage.
Contact us to learn more about how we can help your company comply with SB 253 and SB 261 while driving meaningful improvements in your sustainability efforts.
Contact us to learn more about how we can help your company comply with SB 253 and SB 261 while driving meaningful improvements in your sustainability efforts.
Speak with an Advisor
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September 9, 2025
An Overview of California's Climate Disclosure Laws: SB 253 and SB 261An Overview of California's Climate Disclosure Laws: SB 253 and SB 261In this article, we’ll provide an overview of California's two climate disclosure laws, key deadlines and requirements, penalties for non-compliance, and how we at Clearyst can ensure compliance for your organization.
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