How do I know if my company is required to comply with California SB 261?

Even if your business is not listed on CARB’s preliminary list of ~4,150 entities, you may still be responsible for compliance with SB 261 California. The list is incomplete and does not include exemptions. Each company that meets the law’s thresholds must file a climate-related financial risk report starting in 2026.

What’s the difference between SB 261 and California SB 253 (the California GHG emissions law)?

SB 261 (California SB 261): Requires companies to disclose climate-related financial risks every two yearsSB 253 (California GHG law): Requires annual disclosure of Scope 1, 2, and 3 greenhouse gas emissions, with third-party assuranceSome companies will need to comply with both, while others may only fall under one requirement.

What steps should my company take now to prepare for SB 261 California compliance?

Start by reviewing CARB’s preliminary list and completing the voluntary survey to confirm your status. Then, assess your readiness to produce a TCFD-aligned climate risk report by 2026, coordinate across compliance, finance, and sustainability teams, and prepare for overlapping global requirements like the SEC climate disclosure and the EU CSRD.

Is the DDRT mandatory?

The template itself isn’t a legal mandate. It’s an industry standard many OEMs support to streamline disclosures. Still, suppliers can expect customers to request it and demand action on identified risks.

If I use the DDRT, do I still need a supply chain sustainability platform?

Yes. The DDRT standardizes how information is requested and disclosed, but regulators and OEMs still expect verifiable due diligence and corrective actions. A platform like Assent helps you operationalize those requirements and prove results.

Does Assent help with the DDRT?

Assent’s Forced Labor solution complements the DDRT by enabling supplier engagement, monitoring, evidence review, remediation tracking, and standardized reporting across regulations.

Jamie Wallisch

Sustainability Expert

Jamie Wallisch is an expert in responsible sourcing and supply chain sustainability, including conflict minerals, human rights in supply chains, forced labor, and product carbon footprint accounting for CBAM and other regulations. She helps Assent customers proactively assess their supply chains for sustainability issues, and provides ESG regulatory guidance through enhanced supplier screening. Her work with Assent has even brought her to the Democratic Republic of the Congo to understand the downstream impact to customers. Jamie was also named a finalist for the Next Generation Leadership Award from the Manufacturing Leadership Council.

Talk to Jamie About:

Forced and child labor in conflict mineral and cobalt supply chains
Understanding your responsibilities under supply chain sustainability regulations, such as the Corporate Sustainability Reporting Directive
The EU Ecodesign for Sustainable Products Regulation (ESPR) and circular economies
The Uyghur Forced Labor Prevention Act (UFLPA)