Speaking Sustainability

Despite litigation challenges and regulatory delays, deadlines are not shifting for reporting under California’s Climate Disclosure laws. Most recently, California Air Resources Board (CARB) delayed publishing draft regulations for SB 253 and SB 261, citing extensive public comments and ongoing input on covered entities. Despite the fact that CARB expects to publish an updated timeline for final regulations in early 2026, inaugural reporting under SB 261 is due by January 1, 2026.

The California Air Resources Board (CARB) took a significant step forward recently in implementing the state’s climate disclosure laws: SB 253 (the Climate Corporate Data Accountability Act) and SB 261 (the Climate-Related Financial Risk Disclosure law), in each case as amended by SB 219.

In the ongoing legal challenge to California’s climate-disclosure statutes (SB 253 and SB 261, discussed here by Akin), the U.S. District Court for the Central District of California recently issued an Order on August 13 that denied plaintiffs’ motion for a preliminary injunction. That motion was filed by the U.S. Chamber of Commerce and other business and farming groups arguing the statutes violated their First Amendment rights. The Court found that the plaintiffs were unlikely to succeed on the merits of their claims.

On August 13, 2025, the U.S. District Court for the Central District of California denied a motion for preliminary injunction filed by a coalition of business groups seeking to halt implementation of California’s corporate climate disclosure laws—SB 253 and SB 261. Senate Bill 253 (SB 253 )¹ requires entities that do business in California and whose total annual revenue exceeds $1 billion to disclose Scope 1 and 2 greenhouse gas (GHG) emissions beginning in 2026 (covering 2025 data), and Scope 3 emissions beginning in 2027 (covering 2026 data). Senate Bill 261 (SB 261),² passed as part of the same Climate Accountability legislative package, requires entities that do business in California and whose total annual revenue exceeds $500 million to publicly disclose the business’s climate-related financial risks and measures taken to reduce or adapt to that risk online every two years, beginning in 2026.³

Key Topics in Akin’s July 2025 Speaking Sustainability - Legal & Regulatory Update

Key topics in Akin’s October 2024 Speaking Sustainability - Legal & Regulatory Update include:

Key topics in Akin’s July 2024 Sustainability/ESG Policy and Regulatory Update include:

Key topics in Akin’s June 2024 Sustainability/ESG Policy and Regulatory Update include:

Key topics in Akin’s April 2024 Sustainability/ESG Policy and Regulatory Update include: