California SB 261: Strategic Climate Risk Disclosure for Business Compliance

California Senate Bill 261 requires companies with over $500 million in annual revenue doing business in California to submit a climate-related financial risk report every two years — beginning January 1, 2026

This report must address:

  • Governance

  • Strategy

  • Risk Management

  • Metrics and Targets

Under these four pillars, companies must address 11 detailed TCFD disclosures — touching nearly every core function from finance to sustainability to legal.

  • Does SB 261 Apply to Your Business?

    Here’s What It Requires:

    ► SB 261 requires companies with $500M+ in global annual revenue doing business in California to file a climate-related financial risk report every two years.

    ► Reports must align with the TCFD framework: Governance, Strategy, Risk Management, and Metrics.

    ► Due Date: First report due January 1, 2026.

    Penalties: Up to $50,000 per year for noncompliance or misreporting.

    **Insurance companies are exempt.

  • Why SB 261 Compliance Is Complex for Most Companies?

    SB 261 compliance isn’t a simple reporting task — it demands:

    ► Complex scenario modeling

    ► Multi-dimensional risk evaluations

    ► Deep understanding of the TCFD reporting framework

    ► Involvement from ESG, legal, finance, and risk teams

    ► Infrastructure to collect and disclose relevant data

    **Most companies are not equipped to manage these internal demands. That’s where Snaplinc comes in.