{"id":31058,"date":"2025-10-27T20:01:07","date_gmt":"2025-10-27T20:01:07","guid":{"rendered":"https:\/\/www.trccompanies.com\/?post_type=news-and-insights&#038;p=31058"},"modified":"2025-10-27T20:01:10","modified_gmt":"2025-10-27T20:01:10","slug":"the-deadline-for-californias-mandated-climate-risk-disclosures-sb-261-is-fast-approaching","status":"publish","type":"news-and-insights","link":"https:\/\/www.trccompanies.com\/fr\/insights\/the-deadline-for-californias-mandated-climate-risk-disclosures-sb-261-is-fast-approaching\/","title":{"rendered":"The Deadline for California\u2019s Mandated Climate Risk Disclosures (SB 261) is Fast Approaching"},"content":{"rendered":"<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white\">\n    <div class=\"container-fluid\">\n        \n        <div class=\"row\">\n                            <div class=\"col-lg-8 columns js-animated-content animated-content\">\n                                        <h2><span class=\"TextRun MacChromeBold SCXW49296438 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW49296438 BCX0\">Learn How to<\/span><span class=\"NormalTextRun SCXW49296438 BCX0\"> Navigate Compliance Amidst Regulatory Uncertainty<\/span><\/span><\/h2>\n<p><span data-contrast=\"auto\">Corporate risk management and sustainability teams are abuzz across the country preparing for California\u2019s upcoming climate-related financial risk disclosure requirements, which are due<\/span><b><span data-contrast=\"auto\"> January 1, 2026<\/span><\/b><span data-contrast=\"auto\">, under state Senate Bill (SB) 261. These mandatory reports assess the resilience of a company\u2019s business model under two or more future scenarios, including potential financial impacts from supply chain disruptions, storm-related flooding, regional droughts and wildfires, reputational impacts, increasing regulations and more.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The California Air Resources Board (CARB) <\/span><a href=\"https:\/\/ww2.arb.ca.gov\/our-work\/programs\/corporate-ghg-reporting\/resources\"><span data-contrast=\"none\">announced<\/span><\/a><span data-contrast=\"auto\"> on October 14, 2025, that publication of the agency\u2019s implementing regulations\u2014the law\u2019s formal compliance details\u2014will be delayed until a to-be-specified date in the first quarter (Q1) of 2026. In the absence of implementing regulations, companies may feel uncertain about what to include in their climate-related financial risk reports, to comply with this first cycle of SB 261 reporting.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For over a year, TRC\u2019s climate risk experts have been helping companies develop these SB 261-aligned reports and illuminating a strategic path forward amidst the uncertainty. Whether your organization is just starting its climate risk disclosure journey, or is finalizing its Task Force on Climate-Related Financial Disclosures (TCFD)-aligned report, read on to learn how to quickly and strategically prepare for compliance.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n                <\/div>\n                <div class=\"col-lg-4 columns js-animated-content animated-content\">\n                                        <div class=\"wysiwyg__links js-animated-content animated-content\">\n                        <div class=\"wysiwyg__links__top \">\n                                                        <h4>Related Services<\/h4>\n                                                                                    <ul class=\"js-animated-content animated-content\">\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/services\/environmental-health-safety-management\/climate-resilience\/\" target=\"_self\">Climate Risk and Resilience<\/a><\/li>\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/services\/advanced-energy-programs\/energy-transition-solutions\/\" target=\"_self\">Energy Transition Solutions<\/a><\/li>\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/services\/environmental-health-safety-management\/sustainability-advisory-services\/\" target=\"_self\">Sustainability Advisory Services<\/a><\/li>\n                                                            <\/ul>\n                                                    <\/div>\n                                                                                                            <div class=\"wysiwyg__links__bottom\">\n                                    <a href=\"https:\/\/www.trccompanies.com\/services\" target=\"_self\">View All Services<\/a>\n                                <\/div>\n                                                                                                <\/div>\n                <\/div>\n                    <\/div>\n\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white-fog\">\n    <div class=\"container-fluid\">\n                    <div class=\"wysiwyg__wrapper\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                                                                \n                                                <\/div>\n\n                            <div class=\"col-lg-12 js-animated-content animated-content\">\n                    <h2>Key Actions to Take Now: Four Recommendations\u00a0<\/h2>\n<p><span data-contrast=\"auto\">Adapting to a new regulatory framework on a tight timeframe can be overwhelming, especially with delayed regulatory instructions. There are clear steps that companies can take now, though, to achieve compliance.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<h3>1. Determine your company\u2019s eligibility status for SB 261.<\/h3>\n<p><span data-contrast=\"auto\">If your organization has over $500M in annual revenue and does business in California, then it is likely in scope. If you are not sure whether your company does business in California, check the <\/span><a href=\"https:\/\/bizfileonline.sos.ca.gov\/search\/business\"><span data-contrast=\"none\">Secretary of State\u2019s database<\/span><\/a><span data-contrast=\"auto\">, which lists entities that had an active agent for service of process in California as of 2022. You can also check whether your company pays sales tax in California as a likely indicator of activity there. Most critically, work with internal or external legal counsel regarding an eligibility determination.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<h3>2. If your company is in-scope, assess its current climate-related reports.<\/h3>\n<p><span data-contrast=\"auto\">Does your annual Environmental, Social and Governance (ESG) or Corporate Social Responsibility (CSR) report discuss climate risk-related topics? Has your organization conducted a qualitative or quantitative climate scenario analysis? Are climate-related risks explicitly integrated into your company\u2019s Enterprise Risk Management (ERM) framework? Do you have a TCFD-aligned report published on your corporate website? If you answered \u201cyes\u201d to each of these questions then it will be fairly straightforward to follow <\/span><a href=\"https:\/\/ww2.arb.ca.gov\/sites\/default\/files\/2025-09\/Climate%20Related%20Financial%20Risk%20Report%20Checklist.pdf\"><span data-contrast=\"none\">CARB&rsquo;s Draft Checklist<\/span><\/a><span data-contrast=\"auto\"> to prepare a report for SB 261 compliance. If you answered \u201cno\u201d to most of the questions above, then additional work will be needed.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<h3>3. Act quickly to launch a scenario analysis and develop disclosure responses, if needed.<\/h3>\n<p><span data-contrast=\"auto\">The regulatory compliance deadline of January 1, 2026, is quickly approaching. If your company is in-scope and does not yet have a public report or a prior climate risk assessment, it is time to begin a climate scenario analysis, which can take one to two months to complete. Follow the <\/span><a href=\"https:\/\/assets.bbhub.io\/company\/sites\/60\/2021\/10\/FINAL-2017-TCFD-Report.pdf\"><span data-contrast=\"none\">TCFD&rsquo;s technical recommendations<\/span><\/a><span data-contrast=\"auto\"> for scenario analysis. Then, draft a public-facing report, following <\/span><a href=\"https:\/\/ww2.arb.ca.gov\/sites\/default\/files\/2025-09\/Climate%20Related%20Financial%20Risk%20Report%20Checklist.pdf\"><span data-contrast=\"none\">CARB\u2019s Draft Checklist<\/span><\/a><span data-contrast=\"auto\"> for minimum compliant disclosures. Keep in mind that the entire disclosure process can take three months or more, particularly if new to the TCFD framework. While the deadline for compliance remains January 1, 2026, CARB\u2019s public docket to upload a link to your report is expected to remain open until July 1, 2026. TRC\u2019s <a href=\"https:\/\/www.trccompanies.com\/fr\/services\/environmental-health-safety-management\/climate-resilience\/\">team of climate risk and resilience experts<\/a><\/span><span data-contrast=\"auto\">\u00a0can also help you quickly level up your climate risk processes and draft a compliant report.<\/span><\/p>\n<h3>4. Plan for future compliance cycles.<\/h3>\n<p><span data-contrast=\"auto\">Evaluate your company\u2019s eligibility and preparedness for SB 261\u2019s sibling bill, SB 253, which requires companies doing business in California with annual revenue over $1 billion to publish a greenhouse gas (GHG) inventory with limited assurance by the proposed deadline of June 30, 2026. Next, assess budgets, timelines, goals, and data gaps for the next SB 261 reporting cycle, due January 1, 2028. If you\u2019ve done a qualitative climate scenario analysis for this first cycle, consider conducting a more rigorous, quantitative dive into your physical risks in 2026 or 2027. If your company already has a public TCFD-aligned report, work to understand what additional steps would be needed for IFRS S2 compliance.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n                <\/div>\n                                <\/div>\n\n                    <\/div>\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/innerpage-accordion -->\n<section class=\"fx-accordion js-accordion section-margins\">\n    <div class=\"container-fluid\">\n        <div class=\"fx-accordion-flex\">\n                        <div class=\"fx-accordion-top-content js-animated-content animated-content\">\n                <div class=\"fx-accordion-top-content__inner\">\n                    <h2>What To Know About SB 261<\/h2>\n                <\/div>\n            <\/div>\n                                    <div class=\"fx-accordion-right\">\n                <div class=\"fx-accordion__panels js-animated-content animated-content\">    \n                                        <article class=\"fx-accordion__panel js-accordion-item icon--collapse\" data-accordion-id=\"0\">\n                        <button class=\"fx-accordion__panel__toggle js-accordion-headline\" type=\"button\" data-accordion-id=\"0\">Which Laws are Driving this Compliance Need?  <\/button>    \n                        <div class=\"fx-accordion__panel__content\">\n                            <p><span data-contrast=\"auto\">In October 2023, California passed two laws requiring increased climate-related reporting from large companies with economic activities in the state: SB 261 and SB 253. Please see our previous <\/span><a href=\"https:\/\/www.trccompanies.com\/fr\/insights\/creating-lasting-value-while-preparing-for-californias-approaching-climate-disclosure-laws-sb253-and-sb261\/\"><span data-contrast=\"none\">insight article<\/span><\/a><span data-contrast=\"auto\"> for a detailed explanation of both laws.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Since the bills passed, <\/span><a href=\"https:\/\/ww2.arb.ca.gov\/our-work\/programs\/california-corporate-greenhouse-gas-ghg-reporting-and-climate-related-financial\"><span data-contrast=\"none\">CARB<\/span><\/a><span data-contrast=\"auto\"> has been drafting \u201cimplementing regulations\u201d outlining the nuances of the eligibility definitions and compliance requirements for climate disclosure reports. CARB originally intended to publish these implementing regulations on October 14, 2025, but the agency has now delayed that release. CARB now expects to finalize approval of the implementing regulations at a public Board hearing during Q1 2026. CARB\u2019s <\/span><a href=\"https:\/\/ww2.arb.ca.gov\/board-meeting-dates\"><span data-contrast=\"none\">public calendar<\/span><\/a> <span data-contrast=\"auto\">states that the Board\u2019s spring 2026 meetings will occur on January 22-23, February 26-27 and March 26-27, although CARB has not stated which of these meetings will be used to vote on SB 261\u2019s implementing regulations. Until the implementing regulations are finalized, CARB recommends that companies follow the public guidance already released by the agency, making a \u201cgood faith effort\u201d to comply.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n                                                    <\/div>\n                    <\/article>\n                                        <article class=\"fx-accordion__panel js-accordion-item\" data-accordion-id=\"1\">\n                        <button class=\"fx-accordion__panel__toggle js-accordion-headline\" type=\"button\" data-accordion-id=\"1\">Which Companies are in Scope for the California Laws? <\/button>    \n                        <div class=\"fx-accordion__panel__content\">\n                            <p><span data-contrast=\"auto\">Both SB 261 and SB 253 apply to corporate entities based on annual revenue thresholds and \u201cdoing business in California,\u201d which will be officially defined in the implementing regulations. During public webinars in May and August 2025, CARB signaled that they are considering the following definitions:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li><b><span data-contrast=\"auto\">Annual revenue<\/span><\/b><span data-contrast=\"auto\"> is \u201cthe total global amount of money or sales a company receives from its business activities, such as selling products or providing services.\u201d This definition does not deduct operating costs or other business expenses and, according to CARB, is consistent with metrics used by major data reporting entities, such as Dunn &amp; Bradstreet, Standard &amp; Poor, and Data Axle.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">\u201cDoing business in California\u201d<\/span><\/b><span data-contrast=\"auto\"> may be indicated by any of the following:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span>\n<ul>\n<li><span data-contrast=\"auto\">Being organized or commercially domiciled in California<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Having an \u201cactive\u201d listing on the CA <\/span><a href=\"https:\/\/bizfileonline.sos.ca.gov\/search\/business\"><span data-contrast=\"none\">Secretary of State\u2019s database<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Having $735,019+ of sales in CA, inflation-adjusted in future years OR &gt;25% of total sales<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Having $73,502+ of total real and tangible property OR &gt;25% of total property in state<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Having $73,502+ payroll compensation OR &gt;25% of total payroll in CA<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Note that CARB is considering defining parent and subsidiary relationships based on \u226550% operational control. Parent entities can choose to report for their in-scope subsidiary companies for SB 261 and 253, if desired, or in-scope subsidiaries can report individually.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">CARB has stated that the following entities may be exempted from SB 261 compliance:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">Non-profit and government entities<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">The CA Independent System Operator (CAISO)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Businesses whose only activity in CA consists of wholesale electricity transactions that occur in interstate commerce<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Any company whose only business in CA is the presence of teleworking employees<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Entities that are \u201cin the business of insurance\u201d are exempted from SB 261, but not SB 253<\/span><\/li>\n<\/ul>\n                                                    <\/div>\n                    <\/article>\n                                        <article class=\"fx-accordion__panel js-accordion-item\" data-accordion-id=\"2\">\n                        <button class=\"fx-accordion__panel__toggle js-accordion-headline\" type=\"button\" data-accordion-id=\"2\">What Should my Company do to Comply with SB 261? <\/button>    \n                        <div class=\"fx-accordion__panel__content\">\n                            <p><span data-contrast=\"auto\">To comply with SB 261, companies need to publish a climate-related financial risk report biannually, on or before January 1, 2026, and pay an annual program administration fee (currently anticipated to be ~$3,000) to avoid a non-compliance penalty of $50,000 per reporting year. Note that each in-scope subsidiary is subject to the fee, and companies subject to both SB 261 and SB 253 must pay both program fees. SB 261 reports should use the most-recent and best-available data. Once reports are finalized, companies should submit a link to their publicly accessible report via CARB\u2019s public docket, which is expected to open on <\/span><b><span data-contrast=\"auto\">Dec. 1, 2025,<\/span><\/b><span data-contrast=\"auto\"> and close on <\/span><b><span data-contrast=\"auto\">July 1, 2026.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Reports should apply either the <\/span><a href=\"https:\/\/assets.bbhub.io\/company\/sites\/60\/2021\/10\/FINAL-2017-TCFD-Report.pdf\"><span data-contrast=\"none\">2017 TCFD recommendations<\/span><\/a><span data-contrast=\"auto\"> or their successor framework, <\/span><a href=\"https:\/\/www.ifrs.org\/issued-standards\/ifrs-sustainability-standards-navigator\/ifrs-s2-climate-related-disclosures\/\"><span data-contrast=\"none\">the International Financial Reporting Standards body\u2019s second standard<\/span><\/a><span data-contrast=\"auto\"> (IFRS S2, discussed in more detail in the following section). Regardless of the chosen framework, reports need to cover climate-related governance, strategy, metrics and risk management topics. Reports should include a qualitative or quantitative climate scenario analysis, assessing the resilience of the organization\u2019s strategy and how risks and opportunities may change under two or more plausible future scenarios. Required disclosures include management and Board oversight of climate-related risks; the potential impacts of climate-related risks and opportunities on the company\u2019s operations, strategy and financial planning; metrics used to manage climate-related risks and opportunities; and the integration of climate-related risks into the company\u2019s ERM.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Note that IFRS S2 compliance requires disclosure of Scope 1, 2 and 3 emissions, in accordance with the GHG Protocol. However, CARB has clarified that GHG emissions disclosures are <\/span><b><span data-contrast=\"auto\">not<\/span><\/b><span data-contrast=\"auto\"> required in this first cycle of SB261 reporting, even if companies are following the IFRS S2 standard. This reporting exemption is due to the difference in eligibility requirements and reporting deadline between SB 261 and SB 253.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Reach out to TRC for further guidance based on CARB announcements, reporting best practices and your company\u2019s unique situation.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n                                                    <\/div>\n                    <\/article>\n                                        <article class=\"fx-accordion__panel js-accordion-item\" data-accordion-id=\"3\">\n                        <button class=\"fx-accordion__panel__toggle js-accordion-headline\" type=\"button\" data-accordion-id=\"3\">Should We Apply the TCFD Recommendations or the IFRS S2 Framework? <\/button>    \n                        <div class=\"fx-accordion__panel__content\">\n                            <p><span data-contrast=\"auto\">In selecting required climate risk reporting frameworks, CARB is seeking to enable interoperability with existing international climate disclosure requirements, such as the European Union\u2019s Corporate Sustainability Reporting Directive (CSRD), mandatory TCFD reporting in many countries and growing international momentum toward TCFD\u2019s successor framework, IFRS S2. Therefore, CARB currently allows reporting entities to follow either the TCFD recommendations or IFRS S2\u2019s more rigorous and detailed standards.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If companies have not yet written a climate-related financial risk report, TRC recommends starting with a TCFD-aligned report and then evolving toward IFRS S2 compliance in future reporting cycles. Following the TCFD framework is an excellent step toward insightful climate risk analysis and transparent reporting. IFRS S2 compliance requires additional quantitative analysis, more specific metrics, transition plan details and more thorough governance disclosures. See additional details in the graphic below. TRC can help you evaluate gaps in IFRS S2 readiness and accelerate gap-filling progress, if desired.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><em>Key Disclosures Included in IFRS S2 Compliance vs. TCFD Recommendations<\/em><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-31102 size-full\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/CARB-Insights-Article-Graphics-scaled-e1761594821863.png\" alt=\"\" width=\"2440\" height=\"764\" \/><\/p>\n                                                    <\/div>\n                    <\/article>\n                                        <article class=\"fx-accordion__panel js-accordion-item\" data-accordion-id=\"4\">\n                        <button class=\"fx-accordion__panel__toggle js-accordion-headline\" type=\"button\" data-accordion-id=\"4\">Should my Company Write a Climate Risk Disclosure if We\u2019re Not In-Scope for SB 261?\u00a0<\/button>    \n                        <div class=\"fx-accordion__panel__content\">\n                            <p><span data-contrast=\"auto\">Several additional US states are currently considering laws similar to SB 261 and SB 253, including New York, New Jersey, Illinois, Colorado and Washington. What\u2019s more, over 35 countries already have laws requiring TCFD- or IFRS-aligned climate risk reporting, with at least seven more nations currently drafting such laws. Even if companies do not currently operate in these states or countries, they may choose to publish climate risk reports, to prepare for future possible market expansions.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">An increasing number of companies are also choosing to voluntarily assess their climate-related financial risks, even if they\u2019re not operating in states or countries implementing such laws. TCFD- or IFRS-aligned reporting is rapidly becoming a market and customer expectation. Additionally, in 2024, MSCI found that annual returns from climate risk \u201cleaders\u201d on their All Country World Index (ACWI) outperformed those of \u201claggards\u201d by <\/span><a href=\"https:\/\/www.msci.com\/research-and-insights\/blog-post\/managing-climate-change-risks-vs-chasing-green-opportunities-what-works\"><span data-contrast=\"none\">2-3% annually<\/span><\/a><span data-contrast=\"auto\"> over the last 10 years. By rigorously assessing climate-related risks and opportunities, companies can improve enterprise risk management processes, prepare for potential supply chain and productivity impacts, and boost corporate and community resilience. Organizations can also increase efficiency, uncover innovative revenue opportunities, enhance brand value, raise employee engagement, future-proof their portfolios and more. Therefore, climate risk reports represent a sizeable value creation opportunity above and beyond the current compliance needs.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n                                                    <\/div>\n                    <\/article>\n                                    <\/div>\n            <\/div>\n                    <\/div>\n    <\/div>\n<\/section>\n<!-- End Block: acf\/innerpage-accordion -->\n\n<!-- Start Block: acf\/innerpage-half-text-half-image -->\n\n\n<section class=\"half-and-half flex-row section-padding image-block-left bg-light-gradient text-column-one image-size-cover\">\n    <div class=\"half-and-half-image\">\n        <div class=\"half-and-half-image__wrap\">\n                                                <img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-1024x683.jpg\" class=\"object-fit\" alt=\"Diverse group of businesspeople talking during a meeting in an office boardroom\" srcset=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-1024x683.jpg 1024w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-300x200.jpg 300w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-768x512.jpg 768w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-1536x1025.jpg 1536w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-2048x1366.jpg 2048w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2025\/10\/GettyImages-1395545952-900x600.jpg 900w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>                                    <\/div>\n    <\/div>\n    \n    <div class=\"half-and-half-text\">\n        <div class=\"half-and-half-text__wrapper js-animated-content animated-content\">\n                                        <h2>TRC Can Help You Create Value Through Disclosures\u00a0<\/h2>\n<p><span data-contrast=\"auto\">TRC\u2019s tested practitioners have extensive experience helping companies adapt to evolving climate risk regulations with insightful and carefully-crafted analysis that creates value far beyond compliance. Our solutions can help you uncover efficiencies, streamline processes, improve brand loyalty and recover more quickly from climate-related challenges.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Our specialists provide case-by-case advice to meet you where you\u2019re at, crafting a bespoke climate scenario analysis that integrates your existing mitigation measures and focuses on the material impacts you care about. We understand the nuances of regulatory compliance and are grounded in business realities, while helping you unlock the full value of climate risk assessment. Our climate resilience practitioners can also streamline your time to compliance and minimize the effort needed.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Contact us today to jumpstart your organization\u2019s climate risk disclosure improvements.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><a class=\"btn btn-primary\" href=\"https:\/\/trccompanies.com\/contact-us\/\">Contact Us<\/a><\/p>\n                    <\/div>\n    <\/div>\n<\/section>\n<!-- End Block: acf\/innerpage-half-text-half-image -->","protected":false},"excerpt":{"rendered":"<p>Corporate risk management and sustainability teams across the country are preparing for California\u2019s upcoming climate-related financial risk disclosure requirements under SB 261, due January 1, 2026.<\/p>\n","protected":false},"featured_media":31066,"template":"","tags":[1102,1058,616],"news-and-insights-category":[363],"services-category":[1017],"custom_category":[],"class_list":["post-31058","news-and-insights","type-news-and-insights","status-publish","has-post-thumbnail","hentry","tag-climate-risk-and-resilience","tag-energy-transition","tag-sustainability-advisory-services","news-and-insights-category-insights","services-category-climate-solutions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - 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