Responding to a solicitation for information issued by California’s Air Resources Board, the American Bankers Association today urged CARB “to allow broad flexibility” to companies in complying with two state climate reporting laws.
Scheduled to go into effect in 2026 based on 2025 activities, Senate Bill 261 requires companies doing business in California with more than $500 million in annual revenue to publicly report climate risks and management processes largely conforming with those recommended by the Task Force for climate-related financial disclosures. SB 253 requires those companies with more than $1 billion in revenue to report 2025 Scope 1 and 2 greenhouse gas emissions in 2026 and 2026 Scope 3 emissions in 2027.
Based on such thresholds, dozens of banks may be required to report under the laws and, pending final regulations on Scope 3 reporting, many other companies may be required to provide information to their business partners. As a result, in addition to urging flexibility, ABA also made several recommendations related to the revenue thresholds and in exempting various entities — such as community banks — from certain aspects of the requirements.
