requires a public report on climate-related financial risks to help companies avoid penalties and build a lasting climate strategy.
Requirements
A biennial (every two years) Climate-Related Financial Risk Report, consistent with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
Report Contents
Who it impacts
Public and private companies
Over $500 million in annual revenue
Doing business in California
CARB’s initial concept aligns with the state tax code, generally applying to companies organized in California or those exceeding specific thresholds for in-state sales (>735k ), property, or payroll (>735k), property, or payroll(>73k). This definition is not yet final and is under public review before being finalized. See the full definition
$50,000 annual penalty
for non-compliance or for reports found to be insufficient by the state
Timeline
2026
First report must be published by January 1
2028
Reports must be updated every two years thereafter.
SB 261 Understanding the TCFD framework for SB 261
SB 261 requires reporting to be consistent with the TCFD framework, which is built on four key pillars. While all are important, the "Metrics & Targets" pillar is the quantitative backbone of your entire report.
Governance
Strategy
Risk Management
Metrics & Targets
SB 261 Reporting How Arbor provides the foundation for your SB 261 report
Arbor provides the verified emissions data essential for a credible SB 261 report. Our platform empowers you and your partners to build a strong disclosure on a solid data foundation.
Master the "Metrics & Targets" Pillar
The Arbor platform, used for SB 253 compliance, automatically provides the auditable Scope 1, 2, and 3 emissions data required to complete this critical section of your report. Arbor platform is also equipped with scenario analysis in line with decarbonization target frameworks like SBTi, allowing for an easy way to assess mitigation strategies to decarbonize high-risk areas across a company’s footprint.
Empower Your Strategy & Risk Management
Without accurate emissions data, assessing transition risks like carbon taxes or changing consumer preferences is impossible. Arbor’s data gives you the quantitative insights needed to inform your qualitative narrative for the Strategy and Risk Management pillars.
Streamline Collaboration with Partners
Provide your consultants or internal risk teams with a single source of truth for your emissions data. Arbor’s audit-ready platform ensures everyone is working with consistent, reliable numbers, making the entire reporting process more efficient. Arbor also collaborates with industry-leading consultants to facilitate gap assessments, prepare disclosures, implement governance strategies, and facilitate audits in a straightforward and reliable manner.
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
SB 261 vs SB 253 A unified strategy for California climate disclosures
When you partner with Arbor for both regulations, our SB 253 platform automatically generates the verified data needed for the "Metrics & Targets" section of your SB 261 report, ensuring a cohesive strategy with perfectly aligned data.
Regulation
SB 261
Climate-Related Financial Risk Act
SB 253
Climate Corporate Data Accountability Act
Applies to
Organizations with $500m+ revenue operating in California*
Organizations with $1b+ revenue operating in California*
