Ceres Submits Public Comment to CARB, Supporting California’s Landmark Climate Disclosure Laws

Ceres has submitted a public comment letter to the California Air Resources Board (CARB), expressing strong support for the implementation of the state’s groundbreaking climate disclosure laws. The letter incorporates input from over 100 climate and financial reporting experts, representing more than 70 companies, trade associations, and institutional investors.“Companies are not waiting to act on climate disclosure—many are already reporting voluntarily or under mandatory frameworks in other jurisdictions,” said Steven Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets. “Now, CARB has a critical opportunity to ensure that California’s implementation of SB 253 and SB 261 harmonizes with these efforts, reducing duplication, improving comparability, and strengthening climate risk transparency for investors and stakeholders.” 

In virtual roundtables and poll responses, corporate participants highlighted that many companies affected by SB 253 and SB 261 are prepared to disclose climate-related data and will benefit from regulatory certainty as they enhance internal capabilities and establish the necessary controls and procedures for compliance. Key insights from Ceres’ submission include:

1. Strong Corporate Engagement in Climate Reporting
Ceres’ research reveals that nearly all participating companies are already disclosing climate-related risks and greenhouse gas emissions, either voluntarily or in adherence to international regulations.

2. The Need for Harmonization with Global Standards
Given the extensive existing climate disclosure activities, companies strongly advocate for a framework that aligns with established international reporting standards, such as the International Sustainability Standards Board (ISSB) Standards and the European Union’s Corporate Sustainability Reporting Directive (CSRD).

3. Aligning Reporting Timelines with Financial Cycles
Companies suggest adopting a reporting timeline similar to that of the CSRD, which allows publication within 12 months after the end of a company’s fiscal year, ensuring the delivery of accurate, investor-grade information.

Ceres has been at the forefront of efforts to secure support for California’s climate disclosure laws, including by highlighting backing from major corporations and investors who are advocating for consistent and standardized climate information policies. Last week, Ceres also published an analysis on the number of public and private companies likely to be impacted by SB 253 and SB 261.