California SB 253 & SB 261: webinar summary

Sweep hosted a webinar on California’s landmark climate disclosure laws, SB 253 and SB 261, to help companies understand what’s coming and how to prepare. The discussion featured two leading voices on sustainability and policy: Kate Gordon, CEO of California Forward and former Senior Climate Advisor in both the Newsom administration and the Biden-Harris Department of Energy, and Rachel Delacour, CEO and co-founder of Sweep.

Together, they explored how these laws will reshape corporate reporting in the U.S., what businesses need to do next, and how forward-thinking companies can turn compliance into strategic advantage.

What the laws require and who is in scope

Kate began by distinguishing the two statutes. SB 253 is the emissions reporting bill, requiring disclosure of Scope 1, 2, and eventually 3 emissions for public and private companies doing business in California with more than $1 billion in global revenue. SB 261 is the climate-risk disclosure bill, mandating biennial reporting aligned with TCFD for companies with over $500 million in revenue.

Key points:

• SB 253 follows the GHG Protocol and intersects with CARB’s existing reporting for direct emissions.
• SB 261 focuses mainly on physical climate risk but also covers transition, litigation, and reputational risks.
• “Doing business in California” is likely to be defined broadly, and the revenue threshold will apply to global, not just U.S., income.

Timing, CARB implementation, and what delays really mean

Although CARB has delayed final rulemaking to early 2026, companies should not assume they have extra time. SB 261’s first climate-risk disclosures are still expected in 2026. For SB 253, Scopes 1 and 2 will come first, with flexibility for early compliance, while Scope 3 is expected to follow once methodologies are finalized.

Key points:

• SB 261 reporting is biennial; SB 253 reporting is annual.
• CARB’s new leadership is focused on aligning with global frameworks to avoid duplicative reporting.
• Despite phased timelines, data collection and governance should start now to avoid last-minute scrambling.

How to prepare: interoperability, governance, and practical Scope 3

Rachel emphasized that businesses should build systems that make sustainability data interoperable: upload it once and use it across changing regulations and voluntary initiatives like CDP or ISSB. Strong data governance and cross-departmental collaboration are key to producing audit-ready disclosures.

Key points:

• Establish clear ownership and documentation for each dataset to support assurance.
• Many CSRD-reporting companies found their biggest success in breaking down silos between sustainability, finance, procurement, and operations.
• Start with spend-based estimates for Scope 3 and evolve toward activity-based data — progress matters more than perfection.

Turning compliance into ROI and competitive advantage

Both speakers agreed that sustainability reporting creates tangible business value. With accurate, traceable data, companies can uncover inefficiencies, strengthen supply-chain decisions, win RFPs, and access lower-cost financing.

Kate added that transparent disclosure also drives market advantage through procurement and reputation. “If buyers know what you’re doing, you’re in a much stronger competitive spot,” she said, pointing to California’s “Buy Clean” rules as an example of policy rewarding low-emission suppliers.

Key points:

• Reliable data supports better investment and risk management decisions.
• Disclosure enhances brand trust and can improve access to sustainable finance.
• Early adopters will gain measurable advantages as climate reporting becomes standard business practice.
  

In summary

California’s new climate laws mark a turning point in how companies disclose and manage sustainability performance. While the timelines and details are still evolving, both Rachel and Kate stressed that early action is essential. Companies that start building strong data foundations now will not only ensure compliance but also uncover new opportunities for efficiency, innovation, and growth.

As Rachel put it, “The first movers will be the winners: those who see sustainability not just as a reporting exercise, but as a way to shape the future of their business.”