All About SB 261

Clear. Practical. Actionable.

Understanding California’s SB 261 can feel daunting, but Sprih makes it manageable. Our AI Agents help you assess and disclose climate-related financial risks with clarity, turning compliance into a driver of resilience and smarter strategy.
Connect with Experts

What is SB 261?

SB 261 requires companies to identify, assess, and disclose climate-related financial risks using the TCFD framework (Task Force on Climate-Related Financial Disclosures).

You’ll need to explain how climate change could impact your company’s strategy, operations, and financial performance — and how you’re planning to respond.
You Must Report On What It Means
Governance Who in your company is responsible for managing climate-related risks and opportunities.
Strategy How identified risks and opportunities could affect your business model, strategy, and financial planning.
Risk Management How you identify, assess, and manage climate-related financial risks.
Metrics The key metrics and targets you use to track and manage those risks and opportunities.

Who is it for?

Covered Companies

U.S. and multinational firms doing business in California with over $500M in annual revenues.

Applies regardless of whether your headquarters is in California or outside.

Reporting Cadence

Reports due every two years starting January 1, 2026.

Timeline

You Must Report On What It Means
Governance Who in your company is responsible for managing climate-related risks and opportunities.
Strategy How identified risks and opportunities could affect your business model, strategy, and financial planning.
Risk Management How you identify, assess, and manage climate-related financial risks.
Metrics The key metrics and targets you use to track and manage those risks and opportunities.

What You’ll Need to Report Under CSRD

Theme What You Must Disclose
Governance Oversight of climate risks at the board and management level.
Strategy Short-, medium-, and long-term financial impacts of climate risks and opportunities.
Risk Management Processes to identify and manage climate-related risks, including integration with enterprise risk management.
Metrics and Targets GHG emissions (direct and indirect where relevant), financial exposure metrics, and resilience planning targets.

What Do the Climate Experts Say?

Check out our blogs for deeper insights into SB 261 and related disclosure frameworks.
SB 253 assurance requirement for Scope 1, 2, 3 emissions with timelines and provider criteria
What is California’s SB 261?
  • 6 min read
Impact of California climate laws SB 253 and SB 261 on corporate reporting and compliance
California Climate Disclosure Laws: 5 Steps to Get Audit-Ready
  • 6 min read
sb 253 vs sb 261
What SB 261 Means for Climate Risk Disclosures
  • 6 min read
Read more here
Challenges

Where Are You Likely to Face Issues?

Fragmented Risk Data

Pulling financial exposure, climate models, and scenario analyses into one consistent view.

Scenario Analysis Complexity

Running multiple scenarios (2°C, 4°C pathways) and quantifying business impacts.

Governance Alignment

Getting board and executive teams aligned on climate oversight and disclosure.

Investor Scrutiny

Preparing for investor and regulator review of public risk disclosures.

Integration with SB 253

Ensuring your financial risk reporting is consistent with your emissions disclosures under SB 253.

Staying Ahead

Keeping up with the other evolving regulations and upcoming laws or changes

What Should Be Your Next Steps?

Map Your Financial Risk Exposures

Identify where climate risks (transition and physical) hit hardest in your supply chain, operations, and financial statements.

Align with TCFD Best Practices

SB 261 is modeled on TCFD. If you’re not aligned yet, start by structuring governance, strategy, risk, and metrics accordingly.

Build Scenario Analysis Capacity

Develop the ability to stress-test your business under multiple climate scenarios — regulators will expect this.

Connect SB 261 & SB 253

Treat them as a package: SB 261 disclosures should be consistent with your emissions reporting under SB 253.

AI Agents Built for CSRD. Tailored to You.

  • RiskSense
  • RiskSense
To track global climate regulations and show you exactly what applies.
Learn more
  • AuditSense
  • AuditSense
No scrambling. No gaps. Your disclosures stand up to scrutiny.
Learn more
  • ReportSense
  • ReportSense
The report writes itself. Investor-ready, regulator-ready; built automatically from your data.
Learn more
  • ComplianceSense
  • ComplianceSense
To track global climate regulations and show you exactly what applies.
Learn more
  • KnowledgeSense
  • KnowledgeSense
To keep you updated on new laws, standards, and trends.
Learn more

Still Confused? Talk to our experts.

Connect with our experts if:
  • You need a clear, practical breakdown of SB 261 and its overlap with SB 253.
  • You want to identify how climate risks could affect your specific industry and company.
  • You’re trying to integrate TCFD-style reporting into existing risk management systems.
Whether you're just getting started or refining what you already have, we’ll help you make sense of the requirements and move forward with clarity.
Social
Solutions

SustainSense

Enterprise Sustainability

Carbon Accounting and Assessment

Sustainability Audit and Assurance

Sustainability Reporting

Peer Benchmark

Supply Chain Sustainability

Climate Database

Supplier Engagement

Supplier Empowerment

Supplier Data Exchange

company

About Us

Customers

Careers

Resources

Compliance Assessment

Blogs

Scope 3 Library

Media and News

Webinars

Sprih's Reimagined Experience

Connect With Climate Experts

2024: A Year in Review

Security
GDPR compliant
Subscribe to Sprih's Newsletter and start leading the change.
© 2025 Sprih. All rights reserved.