In 2023, California enacted the Climate Corporate Data Accountability Act (SB 253), a landmark climate disclosure law. The first deadline for covered companies, known as ‘reporting entities,’ to submit Scope 1 and Scope 2 greenhouse gas emissions reports covering the applicable prior fiscal year is November 10, 2026.
The U.S. Court of Appeals for the Ninth Circuit is considering whether SB 253 should be enjoined while litigation on the constitutionality of the Act continues. On October 8, the United States Chamber of Commerce asked the court to act urgently, citing the approaching reporting deadline. Unless and until the Ninth Circuit rules otherwise, the reporting deadline remains in effect, and companies should not assume they will receive relief.
Who Is a “Reporting Entity”?
A “reporting entity” under SB 253 is a partnership, corporation, limited liability company or other business entity formed in the United States that has total annual revenues above $1 billion and does business in California. A “reporting entity” may include subsidiary entities. Each company must decide for itself whether it qualifies, by assessing its revenue and California activities against the definitions under SB 253.
What Must Be Submitted on November 10, 2026?
The California Air Resources Board (CARB) has indicated that it will exercise enforcement discretion for this year’s reports, allowing reporting entities to submit Scope 1 and Scope 2 GHG emissions data for their prior fiscal year based on information they already have or were collecting as of December 5, 2024. As confirmed in the recent guidance document from CARB, if a reporting entity was not collecting data or planning to collect data as of December 5, 2024, it is not expected to submit Scope 1 and Scope 2 data this year. Companies that were not collecting this data at that time should submit a statement of non-reporting on company letterhead before November 10, 2026. Acceptable formats include an existing annual report, data already reported to other programs or CARB’s voluntary draft template. Reports or statements of non-reporting may be submitted through CARB's voluntary intake platform[1] or by email to climatedisclosure@arb.ca.gov.
Recommended Action
Absent clarification by the Ninth Circuit, potentially regulated entities, including subsidiaries, should confirm whether they are reporting entities and, if so, prepare either a report or a statement of non-reporting for submission before November 10.
