What is the SB 253 requirement?

The SB 253 requirement mandates that companies with over $1 billion in revenue doing business in California must publicly disclose their full Scope 1, 2, and 3 greenhouse gas (GHG) emissions annually, following the GHG Protocol.

What is the SB 253 threshold in California?

The revenue threshold for SB 253 is over $1 billion in total annual revenue for companies 'doing business in California.' The definition is unfinalized, but an initial concept is proposed.

What’s the definition of “doing business in California?”

CARB will determine the definition of “doing business in California”. An initial staff concept is based on the Franchise Tax Board definition and is as follows: An entity is considered to be “doing business in California” for purposes of the reporting regulation if: (1) the entity is actively engaging in any transaction for the purpose of financial or pecuniary gain or profit; and (2) any of the following conditions is met during any part of a reporting year: (2a) The entity is organized or commercially domiciled in this state. (2b) Sales of the entity in this state exceed the inflation adjusted thresholds of $735,019 (2024). (2c) The real property and tangible personal property of the entity in this state exceed the lesser of the inflation adjusted thresholds of $73,502 (2024) or 25 percent of the entity's real property and tangible personal property. (2d) The amount paid in this state by the entity for compensation exceeds the inflation adjusted thresholds of $73,502 (2024) or 25 percent of the total compensation paid by the entity. CARB is seeking input from stakeholders regarding these definitions.

Is third-party assurance required for SB 253?

Yes. SB 253 requires third-party assurance. It begins with limited assurance for Scope 1 and 2 emissions in 2026, which increases to a reasonable assurance level in 2030. Limited assurance for Scope 3 emissions starts in 2030.

What’s the difference between SB 253 and SB 261?

SB 253 requires reporting your company's impact on the climate, specifically its greenhouse gas (GHG) emissions. In contrast, SB 261 requires reporting the climate's potential impact on your company (your financial risks).

What does 'good-faith effort' mean for Scope 3 reporting?

The 'safe harbor' clause in SB 253 protects companies from penalties for misstatements in their Scope 3 emissions, as long as they are reported on a reasonable basis and in good faith. This acknowledges the difficulty of collecting value chain data and encourages companies to start reporting even if the data isn't perfect.

What will CARB do with the data companies file?

CARB's goal is to provide investors, consumers, and other interested parties with accurate, comparable, and decision-useful climate information, creating a transparent program that works for California and provides a potential model for others.

Arbor for SB 253: Master California's Regulation with Arbor’s Platform

SB 253 Overview What you need to know

California SB 253

California's Climate Corporate Data Accountability Act (SB 253)

requires large companies to publicly disclose their greenhouse gas (GHG) footprint. The regulation is managed by the California Air Resources Board (CARB).

Requirements

Annual disclosure of Scope 1, 2, and 3 GHG emissions, aligned with the GHG Protocol.

Who it impacts

Over $1 billion in annual revenue

Doing business in California

Public and private companies

$500,000 annual penalty

with a safe harbor for good-faith Scope 3 reporting

Proposed fee

$3,106 (annual flat fee) to cover program implementation costs

Timeline

2026

June 30: Report Scope 1 and 2 emissions (for FY2025)

2027

Report Scope 3 emissions (for FY2026)

2030

Report Scope 1 and 2 Scope 1 and 2 assurance level increases from “limited” to "reasonable."(for FY2025)

SB 253 Solution The complete solution
for SB 253 reporting

Arbor provides the platform and expertise to meet every SB 253 disclosure requirement.

What Arbor's customers have to say

Tremendously helps our product and design teams.

Andrew Goodman

CSR/Sustainability Manager

Andrew Goodman

CSR/Sustainability Manager

Arbor's cutting-edge Carbon Management Platform provides a quick and easy solution to sustainable procurement. We are now able to make more informed supplier decisions, ensuring that we are not only prioritizing quality and cost, but also the environmental impact of our supply chains.

Hopewell

Hopewell.com

Hopewell

Hopewell.com

With a focus on accuracy and efficiency, Arbor's software streamlines impact assessment, making it easier and faster for businesses to understand and decrease their carbon footprint.

Varner A.S.

Varner.com

Varner A.S.

Varner.com

It was so easy to use, the results came through quickly, and it provided exactly the information Jermyn Street Design was looking for. The platform's clear and concise layout made it easy to navigate, allowing me to calculate product carbon emissions for a key client within minutes.

Lisa Cunningham-Sherret

Environmental, Social, Governance Specialist

Lisa Cunningham-Sherret

Environmental, Social, Governance Specialist

Arbor is applauded for being more thorough and transparent than its predecessor data platforms.

Rachel Cernansky

Senior sustainability editor

Rachel Cernansky

Senior sustainability editor

Amazing app and great service. We are a sustainability-focused sports brand and were looking for a CO2 calculation platform like this for a very long time. So far, no difficulties, rock on!

Jan Kratochvil

CEO & Co-founder

Jan Kratochvil

CEO & Co-founder

For firms to effectively manage and reduce their emissions, they need accurate, granular, and decision-useful data. Tools and models like those Arbor is developing are key to providing firms with that information.

David Carlin

Head of Risk, United Nations Environment Programme Finance Initiative (UNEP FI)

David Carlin

Head of Risk, United Nations Environment Programme Finance Initiative (UNEP FI)

Teaming up with Arbor has been a game-changer for our brand! By showing the environmental footprint of our products, we've cranked up the trust factor with our customers and our conversion rates have skyrocketed by a whopping 28%!

Lindsay Lorusso

CEO & Co-founder

Lindsay Lorusso

CEO & Co-founder

Arbor Carbon Accounting Background Design

SB 253 vs SB 261 A unified strategy for
California climate disclosures

By using your SB 253 emissions data as a foundation for your SB 261 risk report, you ensure data alignment, eliminate duplicate work, and maximize compliance confidence with a single, trusted partner.

Regulation

SB 253

Climate Corporate Data Accountability Act

SB 261

Climate-Related Financial Risk Act

Applies to

Organizations with $1b+ revenue operating in California*

Organizations with $500m+ revenue operating in California*

Reporting frequency

Annually

Every two years

Reporting standard

GHG Protocol Corporate Standard

Task Force on Climate-Related Financial Disclosures (TCFD)

Third-party verification?

Required for emissions data

Not required, but organizations must follow disclosure frameworks

Regulator

California Air Resources Board (CARB)

Penalties

Up to $500,000 USD per year

Up to $50,000 USD per year

Next steps

Start SB 253 reporting

Book a demo below

Start SB 261 reporting

Learn about SB 261

*More information on criteria

SB 253 reporting, solved.

Arbor's platform delivers automated calculations and audit-ready data to help you comply with California regulators and avoid penalties.

SB 253 Overview What you need to know

California SB 253

California's Climate Corporate Data Accountability Act (SB 253)

requires large companies to publicly disclose their greenhouse gas (GHG) footprint. The regulation is managed by the California Air Resources Board (CARB).

Requirements

Annual disclosure of Scope 1, 2, and 3 GHG emissions, aligned with the GHG Protocol.

Third-Party Assurance

Who it impacts

Over $1 billion in annual revenue

Doing business in California

Public and private companies

$500,000 annual penalty

with a safe harbor for good-faith Scope 3 reporting

Proposed fee

$3,106 (annual flat fee) to cover program implementation costs

Timeline

2026

June 30: Report Scope 1 and 2 emissions (for FY2025)

2027

Report Scope 3 emissions (for FY2026)

2030

Report Scope 1 and 2 Scope 1 and 2 assurance level increases from “limited” to "reasonable."(for FY2025)

SB 253 Solution The complete solution for SB 253 reporting

Audit-ready emissions calculations

Built-in expert guidance

Faster third-party assurance

Easy data integration

SB 253 Compliance SB 253 compliance in 3 steps

Get up to speed on California’s new climate disclosure laws with our expert guides and tools.

Step 1 Unify your data

Step 2 Automate carbon footprint

Step 3 Prepare & report

What Arbor's customers have to say

Tremendously helps our product and design teams.

Arbor's cutting-edge Carbon Management Platform provides a quick and easy solution to sustainable procurement. We are now able to make more informed supplier decisions, ensuring that we are not only prioritizing quality and cost, but also the environmental impact of our supply chains.

With a focus on accuracy and efficiency, Arbor's software streamlines impact assessment, making it easier and faster for businesses to understand and decrease their carbon footprint.

It was so easy to use, the results came through quickly, and it provided exactly the information Jermyn Street Design was looking for. The platform's clear and concise layout made it easy to navigate, allowing me to calculate product carbon emissions for a key client within minutes.

Arbor is applauded for being more thorough and transparent than its predecessor data platforms.

Amazing app and great service. We are a sustainability-focused sports brand and were looking for a CO2 calculation platform like this for a very long time. So far, no difficulties, rock on!

For firms to effectively manage and reduce their emissions, they need accurate, granular, and decision-useful data. Tools and models like those Arbor is developing are key to providing firms with that information.

Teaming up with Arbor has been a game-changer for our brand! By showing the environmental footprint of our products, we've cranked up the trust factor with our customers and our conversion rates have skyrocketed by a whopping 28%!

SB 253 vs SB 261 A unified strategy for California climate disclosures

SB 253

SB 261

Have questions?

Frequently Asked Questions about SB 253

What is the SB 253 requirement?

What is the SB 253 threshold in California?

What’s the definition of “doing business in California?”

Is third-party assurance required for SB 253?

Are there fees for SB 253 compliance?

What’s the difference between SB 253 and SB 261?

What does "good-faith effort" mean for Scope 3 reporting?

What will CARB do with the data companies file?

SB 253 Reporting Ready to disclose? Arbor makes it easy.

Explore our SB 253 resources

A Quick-Start Guide to California's SB 253 and SB 261

Blog What is California’s Climate Corporate Data Accountability Act (SB 253)?

Blog A Guide to SB 253 and SB 261

Blog What is California’s Climate-Related Financial Risk Act (SB 261)?

Arbor

Measure product carbon footprints fast

Subscribe to Climate Insights

SB 253 Solution The complete solution
for SB 253 reporting

SB 253 vs SB 261 A unified strategy for
California climate disclosures

SB 253 Reporting Ready to disclose?
Arbor makes it easy.