Scope 1
Direct emissions from sources your company owns or controls: fuel combustion, fleet, refrigerants.
California SB 253 · Climate Corporate Data Accountability Act
California SB 253 compliance, made simple
Everything you need to disclose your emissions under California SB 253: who must comply, what to report, the 2026 CARB deadline and how to get audit-ready. Scope 1 and 2, free with Dcycle.
- Free Scope 1 & 2 compliance for your 2026 CARB deadline
- Audit-ready GHG report with third-party verifier support
- Add Scope 3 for 2027 with no migration, no new contract
Trusted by teams already preparing for SB 253
California SB 253 at a glance
$1B+Annual revenue to be in scope
Scope 1, 2 & 3Emissions you must disclose
Nov 10, 2026First Scope 1 & 2 deadline
$500KMaximum penalty per year
What is California SB 253?
California SB 253, the Climate Corporate Data Accountability Act, is a state law that requires large companies doing business in California to publicly disclose their greenhouse gas emissions every year, in line with the GHG Protocol. It is enforced by the California Air Resources Board (CARB).
It was signed in 2023, amended by SB 219 in 2024, and works alongside SB 261, its climate-risk counterpart. Together they form California's corporate climate disclosure package.
Who must comply with SB 253?
Any U.S. company, public or private, with more than $1 billion in total annual revenue that does business in California, regardless of where it is headquartered. Revenue is based on gross receipts and "doing business" uses an economic-nexus test, not just physical presence.
Roughly 5,400 companies are estimated to be in scope. Under SB 219, reporting can be consolidated at the parent-company level.
What SB 253 requires you to disclose
Emissions are reported under the GHG Protocol Corporate Standard, phased in by scope.
Scope 2
Indirect emissions from purchased electricity, steam, heating and cooling.
Scope 3
All other value-chain emissions across the 15 GHG Protocol categories. Required from 2027. See the Scope 3 challenges.
Third-party assurance
Independent verification of your data, phasing from limited to reasonable assurance over time.
California SB 253 deadlines & CARB status
The timeline is phased. CARB is still finalizing the rules, and the first deadline just moved.
- 2026First Scope 1 & 2 report. Deadline moved to Nov 10, 2026. No assurance required.
- 2027Scope 3 reporting begins. Limited assurance for Scope 1 & 2.
- 2030Reasonable assurance for Scope 1 & 2; Scope 3 assurance phases in.
- NowCARB adopted initial rules in Feb 2026, then withdrew them for limited changes. A revised regulation is expected after a 15-day comment period.
CARB can impose penalties of up to $500,000 per reporting year. See the full action plan.
How to account for your emissions
SB 253 follows the GHG Protocol Corporate Standard. First you set your organizational boundary (which entities you consolidate, by operational or financial control) and your operational boundary (which sources sit in each scope). Every figure is then activity data multiplied by an emission factor.
Scope 3 is where it gets hard: 15 categories that mix primary data (actual supplier figures) with secondary data (spend- or average-based estimates). Upstream spans purchased goods and services, capital goods, fuel and energy, transportation, waste, business travel, employee commuting and leased assets; downstream spans transportation, processing and use of sold products, end-of-life, leased assets, franchises and investments.
The real challenge is not the formula, it is getting clean, traceable data from every department and supplier into one source of truth. See the Scope 3 challenges in detail.
Third-party assurance explained
Limited assurance uses inquiry and analytical procedures and gives a negative conclusion ("nothing came to our attention"). Reasonable assurance requires deeper testing and a positive opinion that the data is fairly stated. SB 253 phases Scope 1 and 2 from limited (2027) to reasonable (2030); Scope 3 stays at limited longer.
A typical limited-assurance engagement covers methodology and boundary review, sample re-performance of calculations, inspection of activity data, evaluation of emission factors and assumptions, and a documentation and controls assessment. CARB recognizes standards such as ISSA 5000, ISAE 3000/3410 and ISO 14064-3.
To pass without friction, keep an inventory management plan documenting boundaries, methods, factors and assumptions, and budget at least two months end-to-end. Many teams run a test engagement on prior-year data before the mandatory cycle.
Does SB 253 apply to you?
The test is revenue plus nexus. Pick the profile closest to your company.
U.S. company over $1B doing business in California
If your entity is organized in the U.S., has more than $1 billion in annual revenue and does business in California, you are in scope for SB 253 Scope 1 and 2 in 2026.
Foreign parent with U.S. operations
Global groups are typically captured through the U.S. operations that meet the $1 billion threshold and the "doing business in California" nexus test. Consolidation at the parent level is allowed under SB 219.
You already report elsewhere
If you already disclose to CDP, CSRD or SBTi, most of the underlying emissions data is reusable. SB 253 is a separate CARB filing, not a separate measurement exercise.
No formal inventory yet
Scope 1 and 2 is a defined, automatable task. You can build a compliant baseline before the deadline without a five-figure consulting project.
SB 253 vs SB 261: are you caught by both?
Two sides of the same coin. If your revenue is over $1 billion, you are almost certainly subject to both.
Where SB 253 is about the numbers, SB 261 (the Climate-Related Financial Risk Act) is about the story behind them. It requires companies with over $500 million in revenue to publish a climate-related financial risk report every two years, aligned with the TCFD or IFRS S2 frameworks and built on four pillars: governance, strategy, risk management, and metrics & targets. Companies can disclose gaps and improvement plans, which supports a phased maturity approach.
The first SB 261 report was due January 1, 2026, but a Ninth Circuit injunction and CARB enforcement guidance have paused it, with new dates expected. Because the $500M threshold sits below SB 253's $1B, every SB 253 filer is also an SB 261 filer. The upside: the emissions data you build for SB 253 feeds the metrics pillar of your SB 261 report.
| SB 253 | SB 261 | |
|---|---|---|
| What it is | GHG emissions disclosure | Climate financial risk report |
| Revenue threshold | Over $1B | Over $500M |
| Nature | Quantitative (data) | Qualitative (narrative) |
| Framework | GHG Protocol | TCFD / IFRS S2 |
| Structure | Scope 1, 2 & 3 inventory | Governance, strategy, risk, metrics |
| Frequency | Annual | Biennial |
| First filing | 2026 (Scope 1 & 2) | Was Jan 2026, paused by injunction |
Subject to both? Read the companion guide: California SB 261 explained →
How to get SB 253-ready, step by step
Build your Scope 1 & 2 baseline early
Calculate a prior-year inventory (2024–2025) to pressure-test your process and surface data gaps before the deadline.
Document your inventory management plan
Record boundaries, data sources, calculation methods, emission factors and assumptions. This is your single source of truth for compliance and assurance.
Connect your data and calculate
Utility bills, fuel, fleet, refrigerants: 50+ native integrations or file upload. Dcycle maps each source to the right GHG Protocol factor automatically.
Get assurance-ready and file with CARB
Share a traceable audit trail with your verifier, then submit your 2026 report and start planning Scope 3 for 2027.
Comply with SB 253 with Dcycle. Scope 1 & 2 free.
Most ESG platforms charge up to $25,000 for a Scope 1 and 2 disclosure. Dcycle includes it free.
01
Free Scope 1 & 2 in 2026
Direct and purchased-energy emissions, fully calculated and audit-ready, at no cost for the 2026 requirement.
02
CARB-ready audit trail
Every data point traces to its source document, emission factor and approval chain. Your verifier gets a clean report the first time.
03
Scope 3 upgrade for 2027
All 15 categories, supplier engagement and spend-based calculation. Seamless from your existing Scope 1 and 2 setup, no migration. Compare SB 253 software.
Free Dcycle guide
Download the California SB 253 compliance guide
Who must comply, what to disclose, the November 2026 deadline, assurance and a step-by-step roadmap to get audit-ready without a five-figure invoice.
Free · PDF · 2026 edition
SB 253California SB 253 Compliance Guide2026 edition
Go deeper on SB 253
Requirements
SB 253 compliance requirements
Who must comply, what to disclose and by when.
Read more →DeadlinesSB 253 deadlines & action plan
What to do now to be ready for the CARB deadline.
Read more →Scope 3Scope 3 under SB 253
The hardest part of compliance and how to handle it.
Read more →SoftwareBest software for SB 253 in 2026
How to choose a platform that gets you audit-ready.
Read more →Frequently asked questions about California SB 253
What is California SB 253?
California SB 253, the Climate Corporate Data Accountability Act, is a state law requiring large companies that do business in California to publicly disclose their greenhouse gas emissions every year. It is enforced by the California Air Resources Board (CARB).
Who must comply with SB 253?
Any U.S. company (public or private) with more than $1 billion in total annual revenue that does business in California, regardless of where it is headquartered. Roughly 5,400 companies are in scope.
What emissions do you have to report under SB 253?
Scope 1 (direct emissions), Scope 2 (purchased energy) and Scope 3 (value chain, all 15 GHG Protocol categories), calculated under the GHG Protocol Corporate Standard.
When is the SB 253 reporting deadline?
Scope 1 and 2 emissions are reported first in 2026. CARB moved the initial deadline from August 10 to November 10, 2026. Scope 3 reporting begins in 2027.
Does SB 253 require third-party assurance in 2026?
No. Limited assurance is not required for the first 2026 report. Limited assurance for Scope 1 and 2 phases in from 2027, moving to reasonable assurance by 2030.
What are the penalties for non-compliance?
CARB can impose administrative penalties of up to $500,000 per reporting year for missing the deadline or submitting incomplete data. CARB has signaled enforcement discretion for good-faith first-year filings.
What is the difference between SB 253 and SB 261?
SB 253 is quantitative: it requires GHG emissions disclosure for companies over $1 billion in revenue. SB 261 is qualitative: it requires a climate-related financial risk report (TCFD / IFRS S2) for companies over $500 million, filed every two years. Many companies are subject to both.
Do I still need to report if I already file to CDP or CSRD?
You can reuse the same emissions data, but SB 253 has its own filing to CARB. The good news: if your Scope 1, 2 and 3 inventory is structured and traceable, it feeds SB 253, CSRD, CDP and EcoVadis from a single source.
Does SB 253 apply to non-U.S. companies?
It applies to U.S.-organized entities doing business in California over the revenue threshold. Foreign parent groups are generally captured through their U.S. operations that meet the threshold and nexus test.
How can Dcycle help with SB 253?
Dcycle automates your Scope 1 and 2 calculation for free, produces an audit-ready GHG report for CARB, and lets you add Scope 3 for 2027 with no migration. You connect your data sources and the platform maps each one to the right emission factor.
Talk to an expert
See free SB 253 compliance with your real data
In 30 minutes we show you how Dcycle automates your Scope 1 and 2 disclosure for CARB, using the data you already have.
- A read on where you stand on SB 253
- Free Scope 1 and 2 for your 2026 deadline
- A no-obligation 30-minute call
Get SB 253-ready before the CARB deadline
Download the guide or book a demo and see how Dcycle covers your Scope 1 and 2 disclosure for free.