The California Air Resources Board (CARB) published its preliminary list of companies that may be subject to California’s climate disclosure laws SB 253 (the Climate Corporate Data Accountability Act, which requires U.S.‑based entities doing business in California with over $1 billion in annual revenue to publicly disclose their Scope 1, 2 and 3 greenhouse gas (GHG) emissions) and SB 261 (the Climate‑Related Financial Risk Act, which requires U.S.‑based entities doing business in California with over $500 million in annual revenue to prepare biennial reports describing their climate‑related financial risks and the measures taken to mitigate them, in line with global reporting frameworks). 

Some entities are duplicated on CARB’s list and in some instances, CARB diverged on its proposed approach (e.g., there are some not for profits listed) so it is expected that CARB will need to refine the list.  As noted in our recent client alert Navigating Compliance with California’s Climate Disclosure Laws, the list is not intended to function as a definitive source. However, to the extent a company is identified on the list, it is recommended that the company evaluate its preparedness to comply with these laws whose compliance deadlines are fast approaching.

For further information please contact acinamon@proskauer.com.