California Air Resources Board Publishes FAQs on California Climate Disclosure Laws

• On July 9, 2025, the California Air Resources Board released Frequently Asked Questions to help companies comply with California’s climate reporting requirements under Senate Bill 253 and Senate Bill 261.
• Notably, with respect to initial reports under SB 261, the FAQs provide additional guidance on (1) the location for companies to post links to such reports, (2) CARB’s approach to the “material” climate-related financial risks that must be disclosed, (3) the fiscal year to be covered and (4) CARB’s expectations regarding good faith compliance.
• The FAQs also address the timing and content of initial reports under SB 253, as well as CARB’s regulatory process and goals and initial staff concepts relating to the applicability of SB 253 and SB 261. With respect to these topics, the FAQs are generally consistent with the guidance previously provided by CARB during its public workshop on May 29, 2025.

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