Doing Business in California? New Climate Risk Reporting May Affect You January 1

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By
The Protiviti View

Navigating New Compliance for California Businesses

California is raising the bar for climate accountability, requiring thousands of companies to disclose both their greenhouse gas emissions and the financial risks tied to climate change. With new regulations taking effect in January 2026, now is the time for businesses to get ahead of the curve. Proactive compliance not only helps avoid legal and financial pitfalls but also demonstrates a commitment to sustainability that customers, investors and regulators increasingly expect.

To succeed, organizations need more than just basic reporting skills. They must master risk analysis, develop robust strategies for compliance, and communicate climate-related risks with clarity and confidence. Practical steps include conducting detailed climate risk assessments, building comprehensive greenhouse gas inventory management plans, and securing third-party verification for emissions data. By familiarizing themselves with leading frameworks and guidelines, companies can ensure their reporting is accurate and defensible. The ultimate message is clear: adapting to these changes isn’t just about meeting requirements, it’s about future proofing your business.

Notable Findings:

  • Get ready for California’s climate reporting rules.
  • Prioritize thorough climate risk analysis for your organization.
  • Build strong systems for tracking and managing emissions.
  • Seek independent assurance to validate your climate disclosures.