Here’s what we know so far: SB 261 applies to large private and public companies that meet the revenue threshold and are doing business in California, including organizations headquartered elsewhere with a California footprint. Reports have to be hosted on the company website and lodged with CARB. Disclosures could follow a recognized framework such as TCFD or IFRS S2 and clearly set out governance, strategy, risk management, and metrics.

Key definitions, such as what counts as “doing business” and how $500M revenue is calculated, are still pending CARB clarification (as of October 20, 2025).

Here are six actionable steps to help you prepare for SB 261 compliance:

• Define governance: Assign accountable executives and set board review frequency.
• Map your footprint: Compile a complete list of sites, operations, and key suppliers.
• Assess hazards: Evaluate exposure to wildfire, flood, heat stress, and coastal risk, and link findings to financial planning horizons.
• Test resilience: Add a brief scenario analysis (qualitative is encouraged; quantitative is not mandatory per CARB draft guidance as of October 2025).
• Strengthen data: Close gaps, standardize hazard layers, and document methods for audit readiness.
• Evaluate financial impact: Translate climate risk findings into potential financial implications for assets, operations, and long-term planning.

Location Risk Intelligence’s Reporting Edition supports CSRD and EU Taxonomy requirements and aligns with ISSB (IFRS S2), the TCFD successor, using IPCC‑based scenarios and standard projection years (2030, 2050, 2100). It also enables financial impact assessments, helping organizations link physical risk exposure to potential economic consequences – an increasingly important expectation in climate-related disclosures.

No matter if single site or entire portfolios: Reporting Edition turns assessments into standardized five‑band risk scores with ready‑to‑use PDF/CSV/Excel reports and a REST API for seamless integration into ESG workflows and internal systems. Outputs mirror ISSB/TCFD pillars so you can assemble a public, decision‑useful SB 261 report without reinventing your method every time.

As of October 2025, the Reporting Edition covers all 28 hazards referenced in EU Taxonomy/CSRD physical‑risk disclosure. This could be useful when U.S. teams face SB 261, but global stakeholders expect EU‑style completeness.

If you want to act now, establish a clear pathway for SB 261 compliance and climate‑risk transparency over the next six months. Begin by confirming scope and accountability, then compile a reliable inventory of assets and activities covering California exposure and any material cross‑border dependencies.

You can run an initial risk scan with Location Risk Intelligence to identify hotspots such as wildfire, flood, heat stress, and coastal exposure. Use Reporting Edition to draft a structured disclosure aligned with TCFD or IFRS S2, incorporating a concise qualitative scenario view and a financial impact assessment to link physical risks to potential economic consequences.

Finally, document measures with assigned owners and timelines, prepare assurance‑ready workpapers, and position your organization to publish with confidence. Remember to steadily monitor CARB updates and litigation developments.