AJW provides support to companies navigating climate disclosure requirements, with a near-term focus on California’s Climate Corporate Data Accountability Act (SB 253) and Climate-Related Financial Risk Act (SB 261). We help regulated companies prepare for compliance and advise decarbonization technology providers on how their solutions can fit within emerging disclosure frameworks. As climate disclosure rules expand, AJW helps clients understand new obligations, position credible decarbonization solutions, and prepare for a reporting environment increasingly focused on greenhouse gas (GHG) emissions, climate-related financial risk, and verifiable climate action.
Climate Disclosure Overview
Compliance Thresholds: Companies with global annual revenues exceeding $1 billion (SB 253) or $500 million (SB 261) that do business in California must publicly disclose Scope 1, 2, 3 GHG emissions, plus climate-related financial risks and mitigation strategies.
Key Deadlines: Initial SB 253 Scope 1 and 2 emissions reporting due in Fall 2026 (for prior-year data); biennial SB 261 climate risk reports (on pause). Assurance requirements and Scope 3 phased in subsequently.
Evolving Climate Disclosure Landscape: California’s program is part of a broader shift toward mandatory climate disclosure in major markets, including Europe. Companies and decarbonization solution providers will need to understand how these frameworks interact across emissions reporting, climate-risk disclosure, assurance, and treatment of emissions-reduction strategies.
How AJW Supports Climate Disclosure Clients
AJW helps clients translate complex climate disclosure requirements into practical action. We combine regulatory insight and market experience to help companies understand what is required, prepare credible disclosure approaches, and position climate-related actions within evolving reporting frameworks.
For Regulated Companies:
AJW supports large corporations, industrial facilities, and other in-scope entities in achieving robust, audit-ready climate disclosures while integrating them into broader decarbonization and risk management strategies. We help transform compliance into strategic advantage, enhancing stakeholder trust, investor confidence, and operational resilience.
For Decarbonization Technology Providers:
AJW helps decarbonization technology providers understand how emerging climate disclosure requirements may affect the market for their solutions. We advise clients on how their technologies, data, and emissions-reduction benefits can be positioned within evolving reporting frameworks, helping ensure they are credible, usable, and responsive to the needs of regulated companies.
Our Core Services
- Gap Assessments & Readiness Reviews: Comprehensive evaluation of current emissions data, reporting processes, governance structures, and risk identification against SB 253/261 and related frameworks (GHG Protocol, TCFD, etc.).
- GHG Emissions Reporting & Assurance Preparation: Support for building or refining Scope 1, 2, and 3 inventories; data quality enhancements; and preparation for limited and reasonable assurance requirements.
- Regulatory Intelligence & Ongoing Compliance: Track evolving CARB rules, global disclosure frameworks, and implementation timelines so clients can anticipate changes, refine compliance strategies, and stay ahead of the market as requirements develop.
- Partnership & Market Strategy Support: Assistance for technology providers, platforms, and investors in identifying opportunities, facilitating partnerships with regulated entities, and positioning solutions to meet market demand driven by these regulations.
Next Steps
California’s climate disclosure rules mark a new era of mandatory transparency and accountability. With deadlines approaching rapidly for initial SB 253 reporting, proactive preparation is essential to capitalize on opportunities.
AJW’s proven expertise in California climate policy and decarbonization equips clients across sectors to meet these requirements efficiently and strategically.
