From 2026, two major pieces of climate legislation will reshape how businesses disclose their environmental impact. California’s Senate Bill 253 (SB-253) and Senate Bill 261 (SB-261) are set to apply not only to US-based companies but also to global firms doing business in California – including print and packaging suppliers within international supply chains.
This is a significant development. California is the world’s fifth largest economy and has long been a front-runner in climate regulation. When it sets new disclosure requirements, the ripple effect extends far beyond the state’s borders.
What these new laws require
SB-253 aka the Climate Corporate Data Accountability Act requires large public and private companies operating in California, with annual revenues above $1 billion to disclose their full greenhouse gas emissions – across Scopes 1, 2 and 3 – in line with the Greenhouse Gas Protocol. This includes indirect emissions in supply chains and from the use of sold products.
SB-261 aka the Climate-related Financial Risk Act requires companies with annual revenues above $500 million to prepare biennial reports outlining their material climate-related financial risks and how they plan to mitigate them. This aligns with frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD).
Why this matters to print and packaging
Even if your business does not directly cross the $500m or $1bn thresholds, your customers may. Large retailers, FMCG brands, and global manufacturers will be legally required to report emissions and risks. That means they will demand detailed, accurate carbon data from suppliers – including print and packaging companies – to meet their own disclosure obligations.
For the sector, this accelerates a trend we are already seeing in the UK and Europe with the Corporate Sustainability Reporting Directive (CSRD), the EU Carbon Border Adjustment Mechanism (CBAM) and extended producer responsibility (EPR) schemes. In short: robust carbon data is no longer optional, it is becoming a ticket to trade.
Begin by mapping your Scope 1, 2 and 3 emissions – and start now!
Don’t panic if this applies to your business, here are some actionable steps for print and packaging companies
Understand your footprint – but don’t wait till it is urgent….
Begin by mapping your Scope 1, 2 and 3 emissions – and start now! For many printers and converters, the majority of impact sits in Scope 3 i.e. purchased materials, energy use and downstream logistics. Having an accurate baseline is essential.
Automate and standardise where feasible
Manual spreadsheets are not enough to deliver the granularity or speed now expected. Integrated tools – like CarbonQuota’s solutions – can instantly calculate product-level footprints, giving you reliable data when customers ask.
Engage customers proactively
Rather than waiting for client questionnaires, build carbon transparency into your sales and account management. Show how you can provide credible data to support their SB-253 and SB-261 compliance and retain their business in the long term.
SB-253 and SB-261 signal a new phase in climate regulation – one where transparency is mandatory and supply chains are firmly in scope.
Stay ahead of regulations
California’s laws are unlikely to remain unique. Other jurisdictions are watching closely, and disclosure rules are spreading fast. Early adoption positions your business as a trusted, future-proof partner.
The bottom line is that SB-253 and SB-261 signal a new phase in climate regulation – one where transparency is mandatory and supply chains are firmly in scope. For print and packaging companies, this is both a challenge and an opportunity. Those who invest now in accurate, automated carbon data will not only meet customer demands but also gain a competitive edge in an increasingly regulated marketplace.
At CarbonQuota, we are already helping the industry prepare. Better carbon data, quicker, is how businesses move from risk to resilience.
Contact our expert team today explore how we can help your business to stay ahead of the legislation and your competitors.
