The California Air Resources Board (CARB) recently released a preliminary list of companies that may be required to comply with SB 253 and SB 261. For more information on these laws, read our deep dive into California’s Climate Disclosure Laws.

Download: CARB’s Preliminary List of Reporting/Covered Entities, published September 24, 2025

Verdis Group has reviewed this preliminary list and confirmed that not all of the data is accurate. We want to emphasize that companies are still responsible for complying with the statutory requirements, even if they aren’t on this preliminary list.

As a reminder:

SB 253 applies to U.S.-based entities that conduct business in California and have annual revenue exceeding $1 billion. SB 219 allows subsidiaries to combine their SB 253 reports with their parent companies. 

SB 261 applies to U.S.-based entities that conduct business in California and have over $500 million in annual revenue. Notably, insurance companies are excluded from this law since they already have climate reporting requirements. 

CARB is asking stakeholders to provide feedback to help validate the information in this list. Companies that think they’re in scope (or may qualify for an exemption) are encouraged to complete the voluntary survey.

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Verdis Group is closely following CARB’s implementation of these laws. Our team has the expertise and guidance to collaborate with your organization in assessing risks, calculating scope emissions, and creating a comprehensive report.

Please contact us with any questions about California’s climate disclosure laws: