Why Leaders Can’t Afford to Wait on SB 261
California’s SB 261 requires companies with $500M+ in revenue doing business in the state to file a climate-related financial risk report by January 1, 2026.
It may feel like plenty of time. In reality, it’s not.
Why Procrastination Backfires
Executives know how the calendar works against major initiatives:
Q4 is already packed: Year-end close, audits, strategic planning, and board meetings compete for attention. Adding a new regulatory deliverable in November or December isn’t realistic.
Holiday schedules reduce bandwidth: Teams are distracted, leadership availability is limited, and deadlines slip.
Last-minute work risks weak disclosure: Rushed reporting undercuts credibility with regulators, investors, and customers.
Advisors won’t be available: Consultants, auditors, and legal experts will be fully booked if everyone waits.
Why Acting Early Pays Off
Getting started now positions your company to:
Control the narrative: Frame climate risk as part of your strategy, not a compliance scramble.
Build credibility: Thoughtful, cross-functional reporting demonstrates governance strength.
Secure the right support: Lock in external advisors before the market bottleneck.
Reduce stress on your teams: Spread the work across 2024–2025 instead of forcing a year-end sprint.
Questions to Ask Your Leadership Team
Do we know which parts of our business are most exposed to climate-related risks?
Who owns SB 261 compliance internally—finance, risk, sustainability, or someone else?
Have we begun scenario planning, and do we have the right data to support it?
Is our board engaged and ready to sign off on governance requirements?
If we had to publish tomorrow, how confident would we be in the quality of our report?
The Bottom Line
The deadline is fixed. The only question is whether your company will treat SB 261 as a last-minute compliance task—or as an opportunity to demonstrate foresight and resilience.
Now is the window to get ahead.
