California regulators won’t take enforcement action against companies that make a “good faith effort” to comply with the state’s corporate emissions disclosure law during the first year of reporting in 2026.
The law (SB 253) requires companies with more than $1 billion in annual revenue and doing business in California to report greenhouse gas emissions annually, starting with direct emissions that year. Such emissions are known as scope 1 and 2 emissions.
The California Air Resources Board, which is responsible for enforcing the law, said in an enforcement notice dated Dec. 5 it will exercise “enforcement discretion,” allowing ...