California Climate Disclosure Laws: CARB Approves Greenhouse Gas Reporting and Climate Financial Risk Disclosure Regulation

On February 26th, during a public hearing, the California Air Resources Board ("CARB") approved the adoption of the California Greenhouse Gas Reporting and Climate Financial Risk Disclosure Initial Regulation for the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) (the "Regulation"). The Regulation was proposed by CARB in December 2025. Notably, CARB adopted the Regulation with one exception: that CARB's staff engage with the California Department of Insurance ("CDI") to confirm that, under existing CDI requirements, insurance companies must disclose the emissions data that is required under SB 253 – and if they are not, such companies must be required to submit such emissions data under SB 253 / the Regulation.

If CARB staff determines that additional modifications to the Regulation are appropriate, the modified language will be made available for public comment. Under the Regulation, initial Scope 1 and Scope 2 emissions data (i.e., pursuant to SB 253) must be reported by August 10, 2026.¹

CARB stated that it will be releasing additional rulemaking "later this year" to cover additional SB 253 requirements, including requirements for 2027 and beyond, Scope 3 emissions, and data assurance requirements.

For more information on what the Regulation requires, see our related alert here.

Key Takeaways

• Insurance Companies. At the hearing, there was significant discussion regarding whether insurance companies should be subject to SB 253 and the Regulation. In contrast to SB 261, the statutory language of SB 253 does not expressly carve-out insurance companies. However, CARB's Regulation exempts insurance companies from both SB 261 and SB 253. 

  At the hearing, Senator Scott Wiener, the sponsor of SB 253, and others criticized the exemption of insurance companies from SB 253 as inconsistent with the statute – while others advocated for the exemption stating that insurers already disclose emissions to CDI. Senator Wiener stated that the insurance industry was intentionally included in SB 253 and that "the law of California" is that the insurance industry should be included in the related Regulation. Wiener further stated that climate-related disclosures under CDI are voluntary; other speakers stated that the emissions disclosures under CDI and SB 253 are not comparable, e.g., with respect to Scope 3 emissions. Senator Wiener added that if an insurance company makes climate-related disclosures under CDI that meet the SB 253 / Regulation requirements, then those companies can use those CDI disclosures for compliance with SB 253 / the Regulation.

  CARB defended its exemption of insurance companies and responded that (i) CARB is required by law to not create duplicative requirements, (ii) CDI requires mandatory disclosure of Scope 1 and Scope 2 emissions, and "if applicable", Scope 3 emissions through a survey aligned with the Task Force on Climate-Related Financial Disclosures, and (iii) the CDI requirements cover many more companies than SB 253 as CDI has a much lower applicability threshold. CARB agreed to engage with CDI to ensure that CDI's emissions requirements are mandatory and require disclosure of the same emissions data that SB 253 / the Regulation requires. CARB also indicated that it will continue to engage with CDI to ensure that any future rulemaking, e.g., on Scope 3 emissions, covers any gaps in the emissions requirements across the two regulatory regimes and avoids "duplication in two separate reporting regimes".  

• SB 261 Status. SB 261 remains on pause, while SB 253 remains in effect. On November 18th, 2025, the Ninth Circuit granted a motion for injunction on SB 261 prohibiting CARB from enforcing SB 261 pending the appeal period.² While the litigation also challenges SB 253, the injunction does not directly impact the law. CARB has stated that the previous SB 261 January 1, 2026 deadline is no longer in effect, but companies may voluntarily post SB 261 reports via a public docket.³ If SB 261 is upheld, the timing of when CARB's potential new deadline for initial SB 261 reports will be set is unclear. CARB indicated at the hearing that it is currently not enforcing SB 261, but that it will continue to develop the Regulation, which implements SB 261.
   

• SB 253 Enforcement Discretion. CARB reiterated in the hearing that it will use enforcement discretion and, in its press release following the hearing, CARB also states that it "will use enforcement discretion for good-faith first-year submissions". The Regulation contains the August 10, 2026 deadline for Scope 1 and 2 emissions and is silent with respect to what in-scope entities should report if they were not collecting data as of the December 5, 2024 Enforcement Notice. However, for the first 2026 deadline, CARB has communicated (e.g., in their staff report and in their updated FAQs) that entities that were not collecting emissions data (or were not planning to collect such data) as of the date of the Enforcement Notice (i.e., December 5, 2024) are not expected to submit Scope 1 and 2 reporting data in 2026. Instead, CARB indicates that such entities should submit a statement on company letterhead to CARB stating that they did not submit a report and that the company was not collecting data or planning to collect data at the time the Enforcement Notice was issued.⁴ 

  During the hearing, CARB stated that they want companies to provide to CARB by the August 10, 2026 deadline "whatever they were collecting" as of December 5, 2024 and if companies weren't collecting any data, they should let CARB know that and also let CARB know "what their plan is" to collect data going forward, so that CARB can confirm that a "good faith effort is being made". Notably, in previous statements by CARB on what companies should report if they were not collecting data on December 5, 2024, CARB did not indicate that such companies should report "what their plan is". Some speakers urged CARB to include in the Regulation clarification on this informal exemption for companies that were not collecting data as of December 5, 2024; one speaker noted that there is a "gray area" regarding these matters since the Regulation includes a firm August 10, 2026 deadline for all entities.

This article is part of a series on the California climate disclosure laws. For more information, see our previous articles: 'California climate disclosure laws: Ninth Circuit hears oral argument; no ruling yet,' 'California Climate Disclosure Laws: CARB issues draft regulations,' 'California Climate Disclosure Laws: Ninth Circuit temporarily halts SB 261 and CARB provides new guidance', 'California Climate Disclosure Laws: CARB delays regulations, releases Scope 1 and 2 template, and list of covered entities,' 'California Climate Disclosure Laws: CARB releases draft guidance on SB 261,' 'California Climate Disclosure Laws: CARB Refines Applicability, Deadlines, and Scope,' 'California Climate Disclosure Laws: CARB Affirms Reporting Deadlines, but Delays Regulations that Would Clarify Applicability,' and 'California Bills to Require Greenhouse Gas Emissions Reporting From Companies Doing Business in the State.' 

_{1 For the first SB 253 Scope 1 and 2 emissions 2026 deadline, CARB has indicated in documents outside of the Regulation that entities that were not collecting emissions data (or were not planning to collect such data) as of the date of CARB's December 5, 2024 Enforcement Notice are not expected to submit Scope 1 and 2 reporting data in 2026. Instead, CARB has stated that such entities should submit a statement on company letterhead to CARB stating that they did not submit a report and that the company was not collecting data or planning to collect data at the time the Enforcement Notice was issued.
2 Depending on the Ninth Circuit's ruling, a separate lawsuit against the Laws, currently paused, could resume.
3 Currently, more than 120 climate-related financial risk reports have been voluntarily submitted, which reports can be found here.
4 CARB has stated that it will open a public docket near the first year 2026 reporting deadline, which will include these statements.}

_{White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.}

_{This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.}

_{© 2026 White & Case LLP}