CONTENTS
SB 261 is a California law that requires large companies doing business in the state to report on their climate-related financial risks and actions they’re taking to reduce them. It aligns closely with frameworks like TCFD and applies to companies with annual revenues over $500 million.
Example in context
If you're advising a US-based asset manager with properties in California, you’ll likely need to help them comply with SB 261. That includes identifying which assets face physical climate risks like wildfire or extreme heat and preparing a clear explanation of how those risks could impact their business.
Why it matters
SB 261 has made climate risk reporting mandatory for thousands of companies operating in California, regardless of where they’re headquartered. It pushes climate disclosures beyond voluntary frameworks and requires organisations to assess and communicate financial exposure from climate hazards creating urgency for data-backed assessments and clear reporting.
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