ESG & carbon reporting in United States
In the US there is currently no federal mandatory climate disclosure rule — the SEC’s 2024 climate rule was abandoned and proposed for rescission in 2026. State-level rules lead instead: California’s SB 253 requires large companies doing business in California to disclose Scope 1, 2 and 3 emissions, with first reporting in 2026 (SB 261, on climate risk, is currently paused by litigation).
Key regulations
The SEC adopted a climate disclosure rule in March 2024 but stopped defending it in 2025 and proposed full rescission in 2026 — so there is no active federal mandate.
The Climate Corporate Data Accountability Act requires US companies with over $1 billion revenue doing business in California to disclose Scope 1, 2 and 3 emissions, with first reporting due in 2026.
A climate-related financial risk disclosure law for companies over $500m revenue — currently stayed pending litigation as of late 2025/early 2026.
Who must report
There is no federal mandate; obligations are driven by state laws (notably California) and by value-chain and investor requests. Many US companies report voluntarily using the GHG Protocol and disclose through CDP.
Relevant frameworks
- GHG Protocol — Greenhouse Gas Protocol Corporate Standard
- CDP — CDP — global environmental disclosure platform
- CSRD — Corporate Sustainability Reporting Directive
Frequently asked questions
Is climate disclosure mandatory in the US?
There is no active federal mandate after the SEC abandoned and proposed rescinding its 2024 rule. State laws lead — most notably California’s SB 253 and SB 261 — alongside investor and value-chain requests.
What is California SB 253?
SB 253, the Climate Corporate Data Accountability Act, requires companies with over $1 billion in revenue doing business in California to report Scope 1, 2 and 3 emissions, with first disclosures in 2026.