California’s New Emissions Reporting Rules Take Effect In 2026
California Gov. Gavin Newsom recently signed into law two bills, Senate Bill 253 and Senate Bill 261, that will require companies to report on their greenhouse gas emissions. The new laws likely will have a ripple effect throughout the country and will affect the metals and wider manufacturing sector. Specifically:
- Senate Bill 253 requires companies that do business in California and have more than $1 billion in annual revenues to disclose their direct greenhouse gas emissions and emissions that comes from other activities like employee business travel. These disclosures will need to be made on an annual basis.
- Senate Bill 261 requires businesses that have revenues totaling more than $500 million a year and do business in California to disclose what financial risks climate change poses to their businesses and how they plan to address those risks. These disclosures will need to be submitted every other year.
These rules will take effect in 2026. They are similar to ones the U.S. Securities and Exchange Commission is currently developing and is expected to release later this fall.
Read more about these rules and what others states are considering here.