CARB Updates 2027 Greenhouse Gas Reporting After July 2026 Workshop
CARB tightened 2027 greenhouse gas reporting rules, expanding Scope 3 emissions and insurer reporting.
Why it matters: California’s updated GHG reporting rules create new legal compliance requirements for corporations starting in 2027. Legal teams must adapt to expanded emissions disclosures under SB 253, including insurance industry obligations.
- July 21, 2026: CARB held a virtual workshop on GHG reporting updates under Climate Corporate Data Accountability Act (SB 253).
- Reporting deadline for initial Scope 1 and 2 emissions extended to November 10, 2026.
- From 2027, companies must report five categories of Scope 3 emissions—including purchased goods and employee commuting—with other categories voluntary in the first year.
- Insurance companies must start reporting GHG emissions in 2027 to comply with CARB and California Department of Insurance rules.
On July 21, 2026, the California Air Resources Board (CARB) conducted a virtual workshop to update its greenhouse gas (GHG) emissions reporting program under the Climate Corporate Data Accountability Act (SB 253).
This legislation mandates GHG disclosures from companies with annual revenues over $1 billion, impacting over 5,300 entities. At the workshop, CARB announced that the initial mandatory reporting deadline for Scope 1 and Scope 2 emissions—direct emissions and indirect emissions from purchased electricity—has been extended from August 10 to November 10, 2026.
Beginning in 2027, companies will also be required to report on Scope 3 emissions, which cover indirect emissions along a company’s value chain, such as purchased goods, fuel-related activities, waste, business travel, and employee commuting. CARB staff clarified that reporting for the remaining ten Scope 3 categories will be voluntary initially, allowing companies time to adapt.
A key update is that insurance companies, previously exempted in 2026, must commence GHG reporting in 2027. This is to ensure compliance with CARB standards and parallel regulations from the California Department of Insurance.
The agency also proposed introducing limited assurance requirements for Scope 1 and Scope 2 reports starting in 2027, though detailed standards remain forthcoming.
Jessica Cohen, an environmental law expert at the University of California, Berkeley, noted, "CARB’s expanded Scope 3 coverage and insurer inclusion signal significant shifts in corporate climate accountability that legal teams must proactively address." (Berkeley News, Aug 5, 2026).
These updates reaffirm California’s role as a regulatory leader, with implications extending beyond the state as companies nationwide face increasing pressure for transparent and verifiable environmental disclosures.
By the numbers:
- Over 5,300 companies required to report under SB 253 — generating at least $1 billion in annual revenue
- November 10, 2026 — new deadline for initial Scope 1 and 2 emissions reporting
- 2027 — year companies must begin reporting five categories of Scope 3 emissions and include insurance sector
Yes, but: While five categories of Scope 3 emissions are mandatory starting 2027, reporting on the remaining ten categories remains voluntary initially, offering some flexibility.
What's next: CARB will issue detailed guidance on limited assurance standards for Scope 1 and 2 emissions in late 2026, ahead of 2027 reporting requirements.