FOR IMMEDIATE RELEASE
February 9, 2026
Contact: Michael Blenner, michael.blenner@sierraclub.org
Sierra Club California and NRDC Call on CARB to Implement Robust Greenhouse Gas Reporting Regulations for SB 253 and SB 261
Sacramento, CA — Today, Sierra Club California and the Natural Resources Defense Council (NRDC) submitted a comment letter to the California Air Resources Board (CARB) calling on it to adopt robust regulations for implementing the California Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk (SB 261). The letter also urges CARB to remove the proposed exclusion for insurers from emissions reporting.
SB 253 and SB 261 were signed into law in October 2023. SB 253 requires any company doing business in California with total annual revenues of $1 billion or more to annually disclose its Scope 1, 2 and 3 greenhouse gas (GHG) emissions for the prior fiscal year. SB 261 requires any company doing business in California with total annual revenues of $500 million or more to disclose an annual report including climate-related financial risks associated with its operations. Both laws will be crucial in helping Californians understand how businesses operating in the state manage their GHG emissions and climate-related risks.
CARB is currently soliciting public comment on the implementation of both laws. As part of this process, Sierra Club California, NRDC, and have jointly urged CARB to implement SB 253 and SB 261 quickly and consistent with the plain language and intent of the statutes; reject the proposed exclusion of insurance companies from GHG emissions reporting under SB 253; and ensure that emissions disclosure requirements (particularly for Scope 2 emissions reporting) remain aligned over time with the Greenhouse Gas Protocol as its standards are updated. The groups emphasize that comprehensive, comparable disclosures are essential to protecting investors, consumers, and the long-term health of the economy.
Statement from Jakob Evans, Senior Policy Strategist at Sierra Club California:
“It is vital that SB 253 and SB 261 are implemented as intended and that insurance companies are not exempted from these nation leading environmental regulations. California is facing both a climate and insurance crisis, and our insurance market must be transparent and accountable. Insurance companies play a major role in managing climate risk, and excluding them from emissions reporting would directly undercut the transparency these laws are meant to deliver.”
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Sierra Club California is the legislative and regulatory arm of Sierra Club’s 13 local chapters in California, representing half a million members and supporters, with a mission to practice and promote the responsible use of the earth’s ecosystems and resources; to educate and enlist humanity to protect and restore the quality of the natural and human environment; and to use all lawful means to carry out these objectives. Among Sierra Club’s highest priorities is advocating for federal regulatory policies that address the impacts of climate change, including impacts to the financial system. Sierra Club also has an investment portfolio of approximately $62 million and represents millions of members and supporters, many of whom have significant investments of their own. The Sierra Club and its members seek more reliable and comparable climate-related disclosures.
NRDC is an international nonprofit environmental organization with more than three million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the world’s natural resources, public health, and environment. NRDC has offices in Los Angeles, San Francisco, New York City, Washington D.C., Chicago, Montana, New Delhi and Beijing. Through its finance and legal experts, NRDC advocates for sensible financial regulation that allows our financial system to incorporate financial risks from climate change into day-to-day risk management.