CARB Issues Preliminary List of Entities Covered by California Climate Disclosure Laws
What You Need to Know
Key takeaway #1
CARB posted its preliminary list of covered entities under SB 253 and SB 261.
Key takeaway #2
CARB’s preliminary list is not exhaustive or definitive, and contains several limitations with regard to the data relied on to formulate the list.
Key takeaway #3
Potentially covered entities should still undertake their own analysis of whether they are covered by SB 253 and/or 261, as the first reporting deadline for these laws is only a few months away–on January 1, 2026, under SB 261.
Client Alert | 2 min read | 09.30.25
On September 24, 2025, the California Air Resources Board (“CARB”) issued a preliminary list of reporting/covered entities under California’s climate disclosure laws SB 253 (the Climate Corporate Data Accountability Act) and SB 261 (the Climate-Related Financial Risk Act) (the “Climate Disclosure Laws”) (both as modified by SB 219).
The Climate Disclosure Laws apply to (1) US public and private companies “doing business in California” and (2) generating at least $1 billion in annual revenues (under SB 253) or $500,000,000 in annual revenues (under SB 261). CARB proposed that “doing business in California” will cover companies organized or domiciled in California, or with sales in the state above approximately $735,000.
During CARB’s public workshop on August 21, 2025, CARB previewed that it would be publishing a list of covered entities. CARB also described its methodology for the list at that time, saying it would leverage its existing business entity database as well as use available revenue data to generate and publish a list of entities likely to be in scope. CARB, however, also indicated that any company subject to the regulation will be responsible for compliance, even if it is not initially included on the published list.
Entities reviewing CARB’s list for potential reporting purposes should consider several limitations with the list. The entity data CARB used is over three years old, from March 2022, and the source of revenue data is also unclear because CARB refers to a “proprietary dataset” in making its determinations. There are also logistical issues with the list–there are many duplicate and inconsistent listings for single entities. While CARB hasn't specifically identified all limitations of the datasets it used, the California Secretary of State's Business Search website states that LLPs and certain other entity types cannot be searched electronically, which may have informed the results. And CARB itself cautions against entities relying on the CARB list.
Therefore, potentially covered entities should undertake their own analysis to determine whether they are covered by SB 253 and/or SB 261. The first reporting deadline for the Climate Disclosure Laws is only a few months away–January 1, 2026, for SB 261.
For more information on the Climate Disclosure Laws, please review our client alert published on September 8, 2025. Crowell & Moring will continue to track any developments with respect to California’s Climate Disclosure Laws.
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