California Climate Disclosure Laws

SB 253 covers companies with over $1 billion in annual revenue: first Scope 1 and 2 reports are due November 10, 2026 under CARB's rule, Scope 3 reporting begins in 2027, and penalties reach $500,000 per reporting year. SB 261 requires companies with over $500 million in revenue to publish climate risk reports every two years, with penalties up to $50,000, but the Ninth Circuit enjoined it on November 18, 2025 pending appeal, and CARB is not enforcing it.

These laws push emissions reporting down the supply chain, because Scope 3 emissions include transportation, warehousing and packaging bought from logistics providers. A 3PL serving a retailer with more than $1 billion in revenue should expect requests for shipment-level emissions, facility energy use and carrier fuel data as Scope 3 reporting begins in 2027. Providers able to report accurate emissions per order or per shipment gain an edge in bids.

• Third-Party Logistics3PLAn outside warehouse that ships your orders
• Cost to ServeFull cost of serving a customer or channel

• Carbon Border Adjustment Mechanism (CBAM)2023, definitive phase from 2026 · EU carbon charge on imports of steel, aluminium and more
• Corporate Sustainability Due Diligence Directive (CSDDD)2024, applies from 2029 · EU directive on corporate human rights due diligence
• Warehouse Indirect Source Rule2021 · Southern California emissions points rule for warehouses

1. CARB: Climate disclosure program (SB 253 and SB 261) ww2.arb.ca.gov
2. SB 253, Climate Corporate Data Accountability Act (California Legislative Information) leginfo.legislature.ca.gov