Service Description

California Climate Disclosure Bill The California Climate Disclosure Bill consists of Senate Bill (SB) 253, which mandates the disclosure of ermissions, and SB 261, which mandates disclosures in line with the recommendations of the TCFD. These regulations are set to come into force from 2026 MANDATORY - INTERNATIONAL CLIMATE RISK - FINANCIAL RISK $ Who reports? SB 253 applies to US companies doing business in Califomia with annual global revenues exceeding Sibillion SB 261 applies to US companies doing business in Califomia with annual global revenues >$500 milion What is reported? The requirements of the bill are mostly aligned to the four pillars of the TOFD with a few additions: Governance: Fully aligned to TCFD Strategy Fully aligned to TCFD Risk Management Companies must evaluate climate-related financial risk based on immediate and long-term financial outcomes" Metrics and Targets Scope 3 emissions disclosure is required Limited assurance of scope Tand 2 emissions up until 2030, and then reasonable assurance thereafter Scope 3 emissions will need to be assured to a limited standard by 2030 Scope 3 emissions must be disclosed no later than 180 days after disclosing scope land 2 emissions Benefits Enhance transparency for investors. Standardise disclosures for companies operating in Califomia Align public investment with climate goals Non-compliance Companies not in compliance of SB253 may face penalties up to $500,000 per year Companies anies not in compliance of SB261 may face up to $50,000 in penalties per year