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visibility: hidden" aria-hidden="true"></iframe></noscript><div id="___gatsby"><div style="outline:none" tabindex="-1" id="gatsby-focus-wrapper"><div class="corporative-header"><div class="container"><a title="home" href="/"><div class="logo green"><img src="/logo-new-r-green.svg" alt=""/></div></a><div class="corporative-header-menu hide"><a class="corporative-header-menu-link" href="/about-us">About</a><a class="corporative-header-menu-link" href="/blog">Blog</a><a class="corporative-header-menu-link" href="/risks/overview">Risks</a><a class="corporative-header-menu-link" href="/our-methodologies">Methodologies</a><a class="corporative-header-menu-link link-cta" href="/solutions">Get Enterprise Data<svg width="17" height="16" viewBox="0 0 17 16" fill="none"><path d="M8.125 16L6.715 14.59L12.295 9L0.125 9L0.125 7L12.295 7L6.705 1.42L8.125 -3.49691e-07L16.125 8L8.125 16Z" fill="#242424"></path></svg></a></div><svg class="navIcon no-visible" width="25" height="25" viewBox="0 0 25 25" fill="none"><path d="M5 5H19" stroke="black" stroke-width="1.5" stroke-linecap="round" stroke-linejoin="round"></path><path d="M5 12H19" stroke="black" stroke-width="1.5" stroke-linecap="round" stroke-linejoin="round"></path><path d="M5 19H19" stroke="black" stroke-width="1.5" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></div><div class="hero-post-container gbi-1826911367-tiPevR3vzwuCi2YuK1wy1F" style="background-position:center;background-repeat:no-repeat;background-size:cover;position:relative;opacity:0.99"><style> 20 .hero-post-container.gbi-1826911367-tiPevR3vzwuCi2YuK1wy1F:before, 21 .hero-post-container.gbi-1826911367-tiPevR3vzwuCi2YuK1wy1F:after { 22 content: ''; 23 display: block; 24 position: absolute; 25 width: 100%; 26 height: 100%; 27 top: 0; 28 left: 0; 29 30 transition: opacity 0.5s ease 250ms; 31 background-position: center; 32background-repeat: no-repeat; 33background-size: cover; 34 35 } 36 .hero-post-container.gbi-1826911367-tiPevR3vzwuCi2YuK1wy1F:before { 37 z-index: -100; 38 39 40 opacity: 1; 41 } 42 .hero-post-container.gbi-1826911367-tiPevR3vzwuCi2YuK1wy1F:after { 43 z-index: -101; 44 45 46 47 } 48 </style><noscript><style> 49 .hero-post-container.gbi-1826911367-tiPevR3vzwuCi2YuK1wy1F:before { 50 opacity: 1; 51 background-image: url(''https://cdn.sanity.io/images/sqn0ww9a/production/f1d50ea9089c31f050cc4beba1301710593fee7d-2880x1920.png?w=2880&h=1920&auto=format''); 52 }</style></noscript><div class="hero-blog-content"><span class="our-blog">Sep 05, 2025</span><h1 class="headline">California SB261 Deadline Approaching. Are You Ready?</h1><div class="blog-description"><span style="color:#242424;text-transform:uppercase">Risk</span> | <span>by <!-- -->Nicole Engels, Chief Growth Officer</span> | <span>2<!-- --> Minutes</span></div></div></div><div class="blog-body-container"><div class="body-post-container"><div class="post-content"><div class="post-content"><p>Californiaâs Senate Bill 261 (SB 261) has officially<strong> taken effect.</strong> If your company has revenue, operations, or transactions in California, this law likely applies to you and you must begin preparing climate-related financial risk disclosures today in order to meet the <strong>January 1, 2026 deadline.</strong></p><p></p><h2 id="whoneedstocomply">Who Needs to Comply?</h2><p>
52SB 261 applies to any company other than insurers with <strong>yearly global revenue greater than $500 million</strong> that does business in California.</p><p></p><p>California law defines <strong>âdoing businessâ</strong> broadly. You are considered to be doing business in the state if any one of the following is true:</p><p></p><ul><li>Sales in California: exceed the lesser of: $735,019 (2024 threshold), or 25% of your total sales.</li><li>Property in California: exceed the lesser of $73,502, or 25% of your total property.</li><li>Payroll in California: exceed the lesser of: $73,502, or 25% of your total payroll.</li><li>Actively engaging in transactions for financial gain in California</li></ul><p></p><p>Even without hitting thresholds, a single sale or ongoing transaction for profit in the state can trigger compliance.</p><p></p><h2 id="howdoicomplywithsb261">How Do I Comply With SB261?</h2><p></p><p>Companies "doing business" in CA must prepare and publish a Climate-Related Financial Risk Report <strong>every two years. </strong>The first is due January 1, 2026.<br/></p><p>This report must:</p><ul><li><strong>Identify climate-related financial risks:</strong> Both physical risks (wildfires, floods, extreme heat, storm surge, drought) and transition risks (policy, market, technology shifts).</li><li><strong>Use a recognized framework:</strong> Reports must align with the Task Force on Climate-Related Financial Disclosures (TCFD) or an equivalent standard.</li><li><strong>Detail mitigation and adaptation measures: </strong>Companies must show how they are reducing risk exposure and building resilience into their operations and assets.</li><li><strong>Be made public:</strong> Reports must be posted on the companyâs website and updated every two years.<br/></li></ul><p>Regulators will expect disclosures to be<strong> quantitative, scenario-based, and decision-useful. </strong>Vague ESG commitments will not satisfy.</p><p></p><h2 id="whytheurgency">Why the Urgency?</h2><p></p><ol><li><strong>Deadline pressure: </strong>January 1, 2026 may seem distant, but building robust climate reporting processes takes time. Companies starting now will avoid last-minute compliance risks.</li><li><strong>Financial exposure is real: </strong>Climate hazards are already impacting balance sheets. Insurance in high-risk regions is becoming unaffordable or even unavailable. This increases borrower default risk, reduces asset values, and exposes companies to unexpected financial losses.</li><li><strong>Regulatory momentum is accelerating: </strong>SB 261 is part of a broader wave of climate disclosure requirements, from the SECâs proposed rules to Canadaâs OSFI guidelines and EUâs CSRD. Compliance in California will prepare your business for global alignment.</li></ol><p></p><h2 id="howdoesclimatecheckhelpmecomply">How Does Climatecheck Help Me Comply?<br/></h2><p>ClimateCheck delivers the physical climate risk tools you need:</p><p></p><figure><div data-gatsby-image-wrapper="" class="gatsby-image-wrapper gatsby-image-wrapper-constrained"><div style="max-width:1216px;display:block"><img alt="" role="presentation" aria-hidden="true" src="data:image/svg+xml;charset=utf-8,%3Csvg height='843' width='1216' xmlns='http://www.w3.org/2000/svg' version='1.1'%3E%3C/svg%3E" style="max-width:100%;display:block;position:static"/></div><div aria-hidden="true" data-placeholder-image="" style="opacity:1;transition:opacity 500ms linear"></div><img data-gatsby-image-ssr="" data-main-image="" style="opacity:0" sizes="(min-width: 1216px) 1216px, 100vw" decoding="async" loading="lazy" data-src="https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?w=1216&h=843&auto=format" data-srcset="https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?rect=1,0,1215,843&w=320&h=222&auto=format 320w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?rect=0,1,1216,842&w=654&h=453&auto=format 654w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?rect=0,1,1216,842&w=768&h=532&auto=format 768w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?w=1024&h=710&auto=format 1024w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?w=1216&h=843&auto=format 1216w" alt="ClimateCheck Example Reports"/><noscript><img data-gatsby-image-ssr="" data-main-image="" style="opacity:0" sizes="(min-width: 1216px) 1216px, 100vw" decoding="async" loading="lazy" src="https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?w=1216&h=843&auto=format" srcSet="https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?rect=1,0,1215,843&w=320&h=222&auto=format 320w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?rect=0,1,1216,842&w=654&h=453&auto=format 654w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?rect=0,1,1216,842&w=768&h=532&auto=format 768w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?w=1024&h=710&auto=format 1024w,https://cdn.sanity.io/images/sqn0ww9a/production/9f4daed75180204a4b6ea1300e53e79990f1a4fe-1216x843.png?w=1216&h=843&auto=format 1216w" alt="ClimateCheck Example Reports"/></noscript>
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52</div></figure><p></p><p>Climatecheck's data is easy to integrate into your existing processes via API, dashboards, spreadsheets, or custom integrations. </p><p></p><ul><li><strong>Portfolio assessment and scenario modelling:</strong> understand your strategic opportunities for risk mitigation and resilience to build into your adaptation plan.</li><li><strong>Property reports: </strong>build property level data into your due diligence processes as part of your long-term mitigation plans.</li><li><strong>Climate Value at Risk Analysis:</strong> use actionable financial metrics for capital planning and build system level resilience for your properties through with the best Climate Value at Risk analysis through our partnership with <a href="https://climatefirst.net/" target="_blank">ClimateFirst</a>:<br/></li></ul><figure><div data-gatsby-image-wrapper="" class="gatsby-image-wrapper gatsby-image-wrapper-constrained"><div style="max-width:3282px;display:block"><img alt="" role="presentation" aria-hidden="true" src="data:image/svg+xml;charset=utf-8,%3Csvg height='1865' width='3282' xmlns='http://www.w3.org/2000/svg' version='1.1'%3E%3C/svg%3E" style="max-width:100%;display:block;position:static"/></div><div aria-hidden="true" data-placeholder-image="" style="opacity:1;transition:opacity 500ms linear"></div><img data-gatsby-image-ssr="" data-main-image="" style="opacity:0" sizes="(min-width: 3282px) 3282px, 100vw" decoding="async" loading="lazy" data-src="https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=3282&h=1865&auto=format" data-srcset="https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=2,0,3279,1865&w=320&h=182&auto=format 320w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=2,0,3279,1865&w=654&h=372&auto=format 654w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=0,2,3282,1863&w=768&h=436&auto=format 768w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=1,0,3281,1865&w=1024&h=582&auto=format 1024w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=0,1,3282,1864&w=1366&h=776&auto=format 1366w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=1600&h=909&auto=format 1600w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=1920&h=1091&auto=format 1920w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=1,0,3281,1865&w=2048&h=1164&auto=format 2048w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=1,0,3281,1865&w=2560&h=1455&auto=format 2560w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=3282&h=1865&auto=format 3282w" alt="ClimateFirst Screenshot"/><noscript><img data-gatsby-image-ssr="" data-main-image="" style="opacity:0" sizes="(min-width: 3282px) 3282px, 100vw" decoding="async" loading="lazy" src="https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=3282&h=1865&auto=format" srcSet="https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=2,0,3279,1865&w=320&h=182&auto=format 320w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=2,0,3279,1865&w=654&h=372&auto=format 654w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=0,2,3282,1863&w=768&h=436&auto=format 768w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=1,0,3281,1865&w=1024&h=582&auto=format 1024w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=0,1,3282,1864&w=1366&h=776&auto=format 1366w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=1600&h=909&auto=format 1600w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=1920&h=1091&auto=format 1920w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=1,0,3281,1865&w=2048&h=1164&auto=format 2048w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?rect=1,0,3281,1865&w=2560&h=1455&auto=format 2560w,https://cdn.sanity.io/images/sqn0ww9a/production/67bfcb9f6365f44cbd25dc90c4c40014f839e4ac-3282x1865.png?w=3282&h=1865&auto=format 3282w" alt="ClimateFirst Screenshot"/></noscript>
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52</div></figure><p></p><h2 id="summary">Summary<br/></h2><p>If your company meets the thresholds for doing business in California, SB 261 applies to you.</p><ul><li>The deadline for the first report is January 1, 2026.</li><li>Reports must be public, TCFD-aligned, and quantitative.</li><li>Companies that act now will not only meet compliance requirements but also gain an advantage in managing real climate-related risks to their business.</li></ul><p><br/>ClimateCheck is here to help you prepare, comply, and stay ahead. Contact us as on our website <a href="/">https://climatecheck.com</a> or email us at <a href="/">[email protected]</a></p></div></div><div class="social-widget"><a href="http://www.facebook.com/sharer.php?u=https://climatecheck.com/blog/ca-sb261-deadline-approaching/" target="_blank" rel="noopener noreferrer" class="social-icon facebook"><svg stroke="currentColor" fill="currentColor" stroke-width="0" viewBox="0 0 320 512" height="1em" width="1em" xmlns="http://www.w3.org/2000/svg"><path d="M279.14 288l14.22-92.66h-88.91v-60.13c0-25.35 12.42-50.06 52.24-50.06h40.42V6.26S260.43 0 225.36 0c-73.22 0-121.08 44.38-121.08 124.72v70.62H22.89V288h81.39v224h100.17V288z"></path></svg></a><a href="http://twitter.com/share?url=https://climatecheck.com/blog/ca-sb261-deadline-approaching/" target="_blank" rel="noopener noreferrer" class="social-icon twitter"><svg stroke="currentColor" fill="currentColor" stroke-width="0" viewBox="0 0 512 512" height="1em" width="1em" xmlns="http://www.w3.org/2000/svg"><path d="M459.37 151.716c.325 4.548.325 9.097.325 13.645 0 138.72-105.583 298.558-298.558 298.558-59.452 0-114.68-17.219-161.137-47.106 8.447.974 16.568 1.299 25.34 1.299 49.055 0 94.213-16.568 130.274-44.832-46.132-.975-84.792-31.188-98.112-72.772 6.498.974 12.995 1.624 19.818 1.624 9.421 0 18.843-1.3 27.614-3.573-48.081-9.747-84.143-51.98-84.143-102.985v-1.299c13.969 7.797 30.214 12.67 47.431 13.319-28.264-18.843-46.781-51.005-46.781-87.391 0-19.492 5.197-37.36 14.294-52.954 51.655 63.675 129.3 105.258 216.365 109.807-1.624-7.797-2.599-15.918-2.599-24.04 0-57.828 46.782-104.934 104.934-104.934 30.213 0 57.502 12.67 76.67 33.137 23.715-4.548 46.456-13.32 66.599-25.34-7.798 24.366-24.366 44.833-46.132 57.827 21.117-2.273 41.584-8.122 60.426-16.243-14.292 20.791-32.161 39.308-52.628 54.253z"></path></svg></a><a href="http://www.linkedin.com/shareArticle?mini=true&url=https://climatecheck.com/blog/ca-sb261-deadline-approaching/" target="_blank" rel="noopener noreferrer" class="social-icon linkedin"><svg stroke="currentColor" fill="currentColor" stroke-width="0" viewBox="0 0 448 512" height="1em" width="1em" xmlns="http://www.w3.org/2000/svg"><path d="M100.28 448H7.4V148.9h92.88zM53.79 108.1C24.09 108.1 0 83.5 0 53.8a53.79 53.79 0 0 1 107.58 0c0 29.7-24.1 54.3-53.79 54.3zM447.9 448h-92.68V302.4c0-34.7-.7-79.2-48.29-79.2-48.29 0-55.69 37.7-55.69 76.7V448h-92.78V148.9h89.08v40.8h1.3c12.4-23.5 42.69-48.3 87.88-48.3 94 0 111.28 61.9 111.28 142.3V448z"></path></svg></a></div></div></div><div class="input-search-wrapper"><div class="input-search"><h2 class="input-search-title">Get an Instant Risk Assessment</h2><div class="addressSearch"><style data-emotion="css 2b097c-container">.css-2b097c-container{position:relative;box-sizing:border-box;}</style><div class="css-2b097c-container"><style data-emotion="css 7pg0cj-a11yText">.css-7pg0cj-a11yText{z-index:9999;border:0;clip:rect(1px, 1px, 1px, 1px);height:1px;width:1px;position:absolute;overflow:hidden;padding:0;white-space:nowrap;}</style><span aria-live="polite" aria-atomic="false" aria-relevant="additions text" class="css-7pg0cj-a11yText"></span><div style="width:100%"><style data-emotion="css yk16xz-control">.css-yk16xz-control{-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;background-color:hsl(0, 0%, 100%);border-color:hsl(0, 0%, 80%);border-radius:4px;border-style:solid;border-width:1px;cursor:default;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-flex-wrap:wrap;-webkit-flex-wrap:wrap;-ms-flex-wrap:wrap;flex-wrap:wrap;-webkit-box-pack:justify;
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