California Climate Corporate Data Accountability and Accountability Acts

California Senate Bills 253 and 261 together create the most comprehensive corporate climate disclosure regime in the United States. SB 253 requires large companies doing business in California to disclose their greenhouse gas emissions across all three scopes, including their supply chain emissions (Scope 3). SB 261 requires separate disclosure of climate-related financial risks. Together, they affect thousands of US companies and, through supply chain reporting requirements, their global suppliers.

The California Air Resources Board released its final rulemaking in early 2026, and first reports are due in January 2027. The Scope 3 supply chain emissions disclosure requirement is of particular relevance for Global South suppliers, as buyers subject to the law will need to collect emissions data from their suppliers to fulfil their reporting obligations.

While not an HREDD law in the traditional sense, the supply chain data requirements of SB 253 are creating significant new information demands on Global South suppliers. Companies that cannot provide verifiable emissions data may find themselves disadvantaged in relationships with California-based buyers.