12 March 2026
Sustainability Reporting: What Every Finance Team Needs to Know This March
California locked in its emissions reporting deadline, New York passed its disclosure bill, the UK published final sustainability standards, and the EU finalised Omnibus I. Here's what finance teams need to know.
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If February felt quiet on the sustainability policy front, it wasn't. Three jurisdictions moved from "probably coming" to "here it is." For CFOs, heads of finance, and sustainability leads, the window for watching and waiting just got a lot narrower.
California: It's Happening
After three years of drafts, workshops, and legal challenges, the California Air Resources Board (CARB) voted unanimously in February to approve the implementing regulations for its two landmark climate disclosure laws: Senate Bill 253 (SB 253) covering emissions reporting and Senate Bill 261 (SB 261) covering climate risk reporting.
- Reporting deadline: August 10, 2026 for SB 253 emissions disclosures
- Fee range: Estimated between $2,000 and $7,000 per reporting entity
- SB 261 status: Still paused pending litigation
New York: The Second Domino
On February 10, the New York State Senate passed Senate Bill 9072A, essentially its own version of California's SB 253, by a vote of 40 to 22. The bill requires large companies doing business in New York to disclose Scope 1, 2, and 3 emissions on a mandatory basis.
UK: Voluntary Today, Mandatory Tomorrow
The government published its finalised UK Sustainability Reporting Standards (UK SRS) S1 and S2, which are now available for voluntary use by any UK entity. The Financial Conduct Authority (FCA) launched a consultation proposing to make UK SRS mandatory for in-scope listed companies, with requirements taking effect from January 1, 2027.
EU: Omnibus Is Done. Now Implement.
On February 24, the European Council gave its final sign-off on the Omnibus I simplification package, completing the EU legislative process for changes to both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D). There are no further scope changes coming to CSRD.
The Bigger Picture
What February showed is that climate disclosure is no longer a policy debate. It's an operational reality. California set a deadline. New York followed suit. The UK set a mandatory framework. Europe wrapped up its legislative process. The companies that will handle this best are the ones who've already built the internal infrastructure to collect, verify, and report emissions data without it becoming a crisis project every year.