The first SB 253 deadline is almost here. By November 10, 2026, U.S.-formed entities and U.S. subsidiaries of foreign companies generating over $1 billion in annual revenue and doing business in California are required to submit their inaugural Scope 1 and Scope 2 greenhouse gas emissions disclosures to the California Air Resources Board (CARB). If your team is still scrambling to figure it out, you’re not alone.
However, CARB isn’t asking every company to show up with a perfect, fully assured emissions inventory. For this first cycle, it has built in flexibility, and that flexibility takes two very different forms:
- Good faith reporting, for companies that already had emissions data.
- A statement of non-reporting, for companies that didn’t.
These paths serve very different strategic purposes, and choosing the wrong one can leave your business unnecessarily exposed
Understanding this difference is very important.
First, what is CARB’s enforcement discretion?
On December 5, 2024, CARB issued a pivotal enforcement notice acknowledging a clear reality: building enterprise-grade emissions reporting from scratch takes time.
To ease the transition, CARB confirmed that for the first reporting cycle, it will exercise enforcement discretion for companies making a good-faith effort to comply. In practice, this means CARB will not take enforcement action over incomplete data or minor reporting gaps, provided your business actively retains and submits the Scope 1 and Scope 2 information it was already collecting.
CARB reinforced this stance in its September 1, 2026 guidance, confirming that the first-year safety net hinges on what you were doing when that original notice dropped.
That December 5, 2024 date is the ultimate line in the sand. What your organisation was or wasn’t doing with emissions data on that exact day determines which compliance pathway applies to you.
Path 1: Good Faith Reporting
Who it’s for: Companies that were already collecting or tracking Scope 1 and 2 emissions data as of December 5, 2024. For example, you might report to CDP, publish a sustainability report, or disclose under CSRD, ISSB, or BRSR.
What it means: Your first report is due to CARB by 10 November 2026, covering Scope 1 and 2 emissions for your prior fiscal year (Scope 3 follows from 2027). CARB won’t penalise gaps in this first report, as long as you’re genuinely acting in good faith
In practice, if your company already discloses Scope 1 and 2 emissions voluntarily, you can use your existing data collection process for your first submission. You don’t need to build something new from scratch.
For 2026, CARB has made it easier still. There is no mandatory template and no third-party assurance requirement, and you can submit in one of several formats:
- An existing annual report that includes Scope 1 and 2 emissions
- Scope 1 and 2 data you already reported to another program or voluntary initiative
- CARB’s Draft Scope 1 and 2 Template
What “good faith” looks like: It doesn’t mean perfect. It means making reasonable efforts to set up a process, collect the data you have, identify gaps, and work on closing them. CARB also encourages companies to include supporting details where available, such as methodology, data sources, emission factors, organisational boundary, and key assumptions.
Path 2: The Statement of Non-Reporting (Non-Collection)
Who it’s for: Companies that were not collecting Scope 1 and 2 emissions data, and were not planning to, as of December 5, 2024.
What it means: You don’t have to submit emissions data this year. If a company was not collecting or planning to collect Scope 1 and 2 data when the notice was issued, it is not required to submit GHG data in 2026. However, CARB requests that companies relying on this discretion submit a statement of non-reporting on company letterhead before November 10.
That statement should confirm that the company did not submit a report and that it was not collecting data or planning to collect data at the time the Enforcement Notice was issued.
How to submit it: Companies can use CARB’s Voluntary Reporting Intake Platform, or email their statement to CARB’s climate disclosure inbox.
A word of caution: Be honest about your starting point. If your company was publishing emissions figures in a sustainability report or responding to CDP in 2024, the non-collection route likely isn’t yours to take. Companies that meet the thresholds and were collecting or reporting this information before December 5, 2024, are expected to comply.
Don’t Mistake a Non-Reporting Statement for an Exemption
One of the biggest misconceptions surrounding SB 253 is that submitting a statement of non-reporting lets you off the hook permanently. It doesn’t. CARB’s guidance explicitly frames this flexibility as a one-year transition period, a brief breathing room to help unprepared companies get their act together, not a free pass to ignore climate disclosures.
The clock is already ticking CARB is actively finalising stricter rules for 2027 and beyond, which is likely to demand verified calculation methodologies, mandatory third-party assurance, and expanded Scope 3 value-chain reporting. SB 253 carries hefty non-compliance penalties of up to $500,000 per year, and future filings will require traceable evidence for every single number.
Check for Yourself: Which One Applies to You?
| Comparison Aspect | Good Faith Reporting | Statement of Non-Reporting |
| Dec 5, 2024 Status | Collecting or planning to collect Scope 1 & 2 data. | NOT collecting or planning to collect data. |
| Nov 10, 2026 Submission | Available Scope 1 & 2 emissions disclosures. | Signed letter on company letterhead. |
| Emissions Data Needed? | Yes, using best available information. | No numerical data expected for 2026. |
| 2026 Penalty Relief | Discretion applied for incomplete data. | Temporary pause from immediate reporting. |
| Future Obligation | Remains mandatory for 2027+. | Not a waiver; full compliance required in 2027. |
| Immediate Next Step | Enhance data quality, controls, and traceability. | Immediately establish emissions accounting systems. |
Conclusion: Use The Pause to Build the Process
CARB’s good-faith approach gives you room to get this first report right, not a reason to slow down.
Whether you’re reporting in good faith or filing a non-reporting statement, the next step is the same: connect your emissions data, calculations, and evidence in one clear process. When that chain is clean, every number is easy to check, explain, and repeat next year.
That’s where IRIS CARBON® comes in. We bring your data, calculations, evidence, and reporting workflow into one place, so your team spends less time piecing information together and more time standing behind what you report.
The first filing is today’s priority. A process that outlasts it is what really counts.
