California Climate Disclosure: Updates Following the Latest CARB Workshop
Key takeaways from this article:
- For SB 253, limited assurance is not required for 2026.
- Despite the above change, companies should still seek out assurance to build confidence, meet customer needs, eliminate the need to correct disclosures, and be prepared to meet future requirements.
- SAS can verify your Scope 1, 2, and 3 GHG emissions, while also adding value to your sustainability program.
Overview of California Climate Disclosure
California continues to advance one of the most ambitious corporate climate-disclosure regimes in the world through Senate Bill 253 (Climate Corporate Data Accountability Act) and Senate Bill 261 (Climate-Related Financial Risk Act), as amended by Senate Bill 219.
Together, these laws establish mandatory greenhouse-gas (GHG) reporting and climate-related risk disclosures for large companies doing business in the state. SB 253 applies to public and private companies with revenues over $1B USD that do business in California, and SB 261 applies to public and private companies with revenues over $500M USD that do business in California.
The California Air Resources Board (CARB) remains the central implementation authority, and its recent public workshop provided critical—but still evolving—guidance that companies should now integrate into their compliance and sustainability strategies.
California Climate Laws and Assurance
One of the most consequential components of SB 253 is its requirement for independent third-party assurance. This introduces a layer of rigor comparable to financial-reporting controls and elevates expectations for data accuracy and governance.
However, at the recent CARB workshop, it was announced that limited assurance would no longer be required for SB 253 for 2026.
Despite this update, companies should strongly consider obtaining assurance for their climate disclosures now. Why?
Build Confidence & Meet Customer Needs
Third-party assurance provides confidence that the data you are sharing publicly is accurate and credible, which is critical for maintaining trust with stakeholders. Customers want verified data to compare competitors and help you make informed decisions for business improvement.
Eliminate Need to Backtrack
Without assurance, there’s a risk of having to revisit and correct previously disclosed information, which can damage reputation and create unnecessary complexity.
Be prepared
Assurance is not going away—it’s only a matter of time before it becomes mandatory. By starting early, companies can build the processes and relationships needed to meet future requirements smoothly. Getting ahead of the curve positions your organization as proactive and transparent, while reducing compliance risk and avoiding last-minute scrambling when the rules tighten again.
How SAS can support you
We recommend that organizations initiate the assurance process now for their 2025 emissions to proactively identify and resolve any potential issues within the 2026 assured inventory. Dropping assurance now can result in extra work the following year.
When you work with SAS, you work with a provider who is well-versed not only in assurance practices but also in sustainability reporting, greenhouse gas emissions calculations, and non-financial data. SAS can verify your Scope 1, 2, and 3 GHG emissions, while also adding value to your sustainability program. Contact us for support.