California has passed two climate laws — SB 253 and SB 261 — that go beyond the SEC’s federal disclosure rule in scope and applicability. If your company does business in California and meets the revenue thresholds, you may be subject to both.

This post explains how these rules differ, where they overlap, and what your compliance roadmap should look like if you’re navigating both at once.

At a Glance: Key Differences

Applicability: Who Must Report Under Each Rule?

SB 253

• Companies with > $1 billion in annual revenue
• Must do business in California
• Both public and private firms included
  

SB 261

• Companies with > $500 million in annual revenue
• Also must do business in California
• Excludes insurers (regulated separately)
  

SEC Climate Rule

• Public companies only
• Applies to all filers, but phased in by size
• No specific revenue threshold
  

Takeaway: A large private company that isn’t publicly traded may still be fully covered by SB 253 and SB 261, but not by the SEC rule.

What’s Required Under SB 253 and SB 261

SB 253 – GHG Emissions Reporting

• Disclose Scope 1 and Scope 2 emissions annually
• Scope 3 required from 2027 (assurance required by 2030)
• Submit to California Air Resources Board (CARB)
• Third-party assurance is mandatory
  

SB 261 – Climate Risk Disclosure

• Disclose material climate-related financial risks
• Follow TCFD-aligned framework (or IFRS S2 equivalent)
• Describe strategies to reduce/adapt to risk
• Must publish report on company website every two years
  

What the SEC Climate Rule Covers

The SEC rule (finalized in March 2024) requires:

• Disclosure of climate-related risks likely to materially impact operations, strategy, or financials
• GHG emissions reporting (Scope 1 & 2 mandatory for large filers)
• Scope 3 disclosure only if material or included in climate targets
• Integration of climate data in 10-K filings
• Limited assurance for Scope 1 and 2 phased in over time
  

Assurance Requirements Compared

SB 253 is stricter in the long run, especially with Scope 3 assurance becoming mandatory — a first globally.

Disclosure Deadlines

Companies affected by all three may need parallel workflows to meet both federal and California-specific deadlines.

What Dual Compliance Means for You

If you’re a public company with over $1B in revenue and operations in California, here’s what you’re facing:

SB 253 requires GHG disclosures (with assurance)
SB 261 requires climate risk reporting (TCFD-aligned)
SEC expects emissions and financial risk info embedded in annual filings

This isn’t duplication — it’s a multi-layered compliance stack. And that’s a shift in how ESG data gets treated.

You’ll need:

• Unified data architecture to serve both state and federal needs
  
• Assurance readiness across Scope 1, 2, and (eventually) Scope 3
  
• Cross-functional alignment across finance, legal, risk, and sustainability teams
  

How Sprih Helps You Stay Ahead

We’ve designed Sprih’s platform to simplify dual compliance.

Here’s how:

• One system for emissions and risk data — mapped to both CARB and SEC needs
  
• Assurance-ready reports with full audit trails
  
• TCFD and IFRS S2 alignment built into the risk module
  
• Flexible exports for website publishing, SEC filings, and CARB submission
  

Need to file with the SEC, publish under SB 261, and comply with SB 253 — all in one year? Sprih helps you do it without doubling the work.

👉 Request a demo
👉 Download our Dual Compliance Readiness Guide