This report analyzes the first wave of voluntary corporate climate risk disclosures filed under California's Climate-Related Financial Risk Act (SB 261), creating an initial baseline for how corporate climate risk reporting is evolving ahead of mandatory compliance.
The report from Governance & Accountability Institute (G&A Institute) and Ceres analyzes 154 voluntary disclosures submitted under SB 261 as of early May 2026. Companies operating in California submitted these reports voluntarily, despite legal challenges to the law.
The climate disclosure rules in California—the fourth-largest economy--are taking on a larger role as states fill the gap left by the U.S. federal government. The report provides case studies of leading disclosure practices, offering companies concrete examples for strengthening future reports.
Key findings:
Nearly all early reporters identified physical and transition climate risks.
Disclosure quality varied significantly across companies.
92% of early reporters disclosed board-level oversight of climate-related issues
Just 12% of reporting companies mentioned a formal transition plan.
Only 12% quantified the financial impact of climate-related risks.