Aligning California and EU Climate disclosure mandates

KUALA LUMPUR, 1 OCTOBER 2026 —

California’s corporate climate disclosure mandates, which take effect on January 1, 2026, are set to impose greenhouse gas emission and climate-related financial risk reporting requirements on thousands of companies, regardless of their headquarters location.

The new laws have wide-ranging application, targeting entities that must disclose specific environmental and financial data. In anticipation of the draft disclosure requirements for Senate Bill 253, specifically the Notice of Proposed Rulemaking scheduled for publication on October 14, legal and accounting firms are advising businesses on preparation strategies.

The focus of upcoming industry seminars is to help companies meet these upcoming requirements as effectively and efficiently as possible, ensuring compliance with the new state regulations.

Hogan Lovells, through its ESG, Sustainability, and Climate practice, is organizing these seminars to provide strategic counsel to businesses operating across borders. The firm’s multi-disciplinary experts aim to apply lessons learned from the ongoing implementation of corporate sustainability reporting in the United Kingdom, the European Union, and other global jurisdictions. By leveraging these international experiences, the firm seeks to assist clients in navigating the complexities of the new California mandates.

The primary objective of these initiatives is to help companies turn global ESG frameworks into a compliance advantage with the California Air Resources Board (CARB). As the regulatory environment evolves, the alignment between California’s mandates and existing EU and UK reporting standards becomes a critical area of focus for corporate governance teams. The seminars emphasize the practical application of these frameworks to ensure that companies can manage their disclosure obligations without duplicative efforts.

For Malaysian and regional readers, this development underscores the increasing global pressure on multinational corporations to standardize their climate reporting. As companies headquartered in or operating within Southeast Asia expand into North American markets, they will face direct obligations under California’s laws if they meet the applicable thresholds.

The requirement to disclose emissions and financial risks irrespective of headquarters location means that regional firms with significant US operations must now integrate California-specific data into their broader sustainability reporting structures.

The next major step in this regulatory process is the publication of the Notice of Proposed Rulemaking for SB 253 on October 14. This document will outline the specific draft disclosure requirements, providing companies with the detailed guidelines necessary to finalize their compliance plans ahead of the January 1, 2026, effective date.