Key Takeaways: California Senate Bill 219 (SB 219) updates and streamlines the state’s climate disclosure laws by refining SB 253 on greenhouse gas reporting and SB 261 on climate-related financial risk disclosures. The law extends the rulemaking deadline, adds flexibility for Scope 3 emissions reporting, allows consolidated parent-level filings, and adjusts fee timing, while keeping 2026 and 2027 compliance dates intact. Businesses operating in California should act now to prepare robust tracking, risk assessment, and reporting systems aligned with global standards like ISSB and CSRD.
California Strengthens Its Climate Disclosure Framework
California has reinforced its role as a leader in climate accountability with the passage of Senate Bill 219 (SB 219) in September 2024. Signed into law by Governor Gavin Newsom, this legislation refines and streamlines the state’s ambitious climate disclosure framework. SB 219 amends and harmonizes the requirements of SB 253—focused on greenhouse gas emissions reporting, and SB 261, centered on climate-related financial risk disclosures. The bill’s intent is not to alter the overall compliance deadlines, but to provide companies with greater flexibility, improved clarity, and reduced administrative hurdles as they prepare to meet the state’s stringent standards.
What SB 219 Does
SB 219 is formally titled the Greenhouse Gases: Climate Corporate Accountability: Climate-Related Financial Risk law and is part of what is now collectively known as the Climate Corporate Data Accountability Act (CCDAA). It provides the California Air Resources Board (CARB) with an extended timeline, moving the deadline for adopting and implementing regulations from January 1, 2025, to July 1, 2025. This six-month extension gives both regulators and affected companies additional time to adapt and prepare their reporting systems.
One of the most significant changes introduced by SB 219 is increased flexibility in reporting Scope 3 greenhouse gas emissions. Previously, companies were required to submit Scope 3 reports within 180 days of filing their Scope 1 and Scope 2 emissions. Under the new law, CARB will determine the deadline for Scope 3 reporting, acknowledging the complexity of gathering and analyzing value chain data. The bill also allows subsidiaries to consolidate their emissions reporting at the parent-company level, reducing duplication and easing administrative burdens for corporate groups.
Changes to Fees and Reporting Timelines
SB 219 adjusts the fee structure as well. While companies will still be responsible for paying reporting fees, they are no longer required to pay at the time of filing. This change offers businesses more flexibility in managing cash flow without reducing the state’s capacity to collect necessary fees. Significantly, the legislation does not alter the original compliance timelines. Companies subject to SB 253 must still begin reporting Scope 1 and Scope 2 emissions in 2026 and Scope 3 emissions in 2027. Those subject to SB 261 must continue to prepare their first climate-related financial risk reports by January 1, 2026, and update them every two years thereafter.
Who Must Comply Under SB 219
The scope of these requirements is substantial. SB 253 applies to companies doing business in California with annual revenues exceeding $1 billion, while SB 261 covers companies with more than $500 million in annual revenues. SB 253 mandates reporting on Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, while SB 261 requires disclosures on climate-related financial risks and mitigation strategies, following the Task Force on Climate-related Financial Disclosures (TCFD) framework.
Why SB 219 Matters for Businesses
SB 219 matters because it refines how companies meet these obligations without weakening California’s climate goals. It brings the state’s disclosure framework into closer alignment with global standards such as the International Sustainability Standards Board (ISSB) and the European Union’s Corporate Sustainability Reporting Directive (CSRD). By removing unnecessary barriers and providing a more practical path to compliance, the law encourages more companies to approach climate reporting as an opportunity rather than simply a regulatory burden.
How to Prepare for Compliance
For companies operating in California, the passage of SB 219 is a clear signal to begin preparing now. This means establishing robust systems for tracking emissions, especially Scope 3 data, integrating climate risk assessment into enterprise risk management, and aligning disclosure frameworks with both domestic and international standards. Early action will not only make compliance smoother but also position companies as leaders in transparency and sustainability at a time when investors, regulators, and customers increasingly demand it.
The Bottom Line
SB 219 is a fine-tuning of California’s climate disclosure laws. It is designed to make compliance more manageable while keeping the pressure on businesses to deliver accurate, transparent, and timely climate-related data. Those who respond proactively will be better equipped to meet these obligations and to capitalize on the growing market preference for companies that take climate accountability seriously.
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