Cannabis Climate Disclosure: How SB 253 and SB 261 Will Reshape California’s THC Beverage Supply Chain in 2025

How cannabis businesses address climate change is about to undergo a seismic shift in California. With the state’s new climate disclosure laws—SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act)—cannabis and hemp beverage brands face sweeping new reporting obligations beginning in 2026–2027. But 2025 is the critical year to build compliance systems, especially for anyone handling THC drink cans, concentrate cartridges, or packaged product exports. Here’s what the new regulations mean, what businesses must do now, and how to coordinate a successful disclosure program.

The Legal Landscape: SB 253 & SB 261 Overview

SB 253: Mandatory Emissions Disclosure

SB 253 requires U.S.-based companies with over $1 billion in annual revenue doing business in California to publicly report their Scope 1 and Scope 2 greenhouse gas (GHG) emissions for the first time in 2026, covering fiscal year 2025. Beginning 2027, businesses must also report Scope 3 emissions—which includes the entire supply chain, from agricultural production to packaging, distribution, and logistics (CARB FAQ).

SB 261: Mandatory Climate Risk Reporting

SB 261 applies to U.S. companies with over $500 million in annual revenue doing business in California. These entities must submit a biennial climate-related financial risk report starting January 1, 2026, detailing:

• Actual and potential impacts of climate-related risks on operations, strategy, financial planning
• Governance and transition strategies for climate risks
• Data gaps, adaptation measures, and progress tracking (BDO Insights, White & Case)

Note: Companies do not have the choice to defer due dates: SB 253 reporting will begin in 2026 for Scope 1 & 2, and 2027 for Scope 3. SB 261 risk reports are due by January 2026, then every two years.

Who Needs to Prepare: Are You In Scope?

Cannabis Beverage & Packaging Brands

While SB 253 applies to very large enterprises, the entire supply chain is impacted—particularly suppliers of aluminum cans, glass, labels, CO₂, cold-chain logistics, and freight for THC and hemp drinks. If you:

• Supply contract manufacturing or packaging services to large cannabis drinks brands
• Export packaged products to the EU or supply EU-based retailers
• Operate as a brand/holding company near the $1B or $500M thresholds

…you need robust data processes now, because your downstream customers (or your own group) will be requesting emissions and risk data immediately in 2025.

Smaller Brands and Co-packers

Even if under the threshold, many smaller cannabis companies will face knock-on requests for primary data as large customers and distribution partners seek to uncover Scope 3 emissions throughout the supply chain (Watershed Guide).

2025: The Build Year for Data & Processes

What Must Happen in 2025?

1. Supplier Data Readiness for Beverage Containers

• Begin gathering primary data on inputs such as:
• Aluminum and glass can production (GHG per unit, recycled content, energy source)
• Labels, shrink sleeves, and secondary packaging
• Beverage CO₂ and refrigerants (especially for cold-chain shipments)
• Transportation freight: mode, distance, fuel mix
• Ask: Do suppliers provide environmental product declarations (EPDs) or similar documentation?

2. Quantification of Scope 1–3 Emissions

• Use life cycle inventory (LCI) tools—not simple spend-based calculators—to reduce estimation error. Access to detailed, category-specific data will be critical.
• Establish clear data boundaries with canners, co-packers, and major suppliers. Contracts should outline data-sharing obligations and timelines.

3. Governance & Climate Risk Narratives

• Under SB 261, companies must develop transition-risk narratives and risk governance frameworks, using standards like the TCFD or IFRS S2 (Harvard Law Forum).
• Narratives should detail:
• Supply chain vulnerabilities (extreme weather, drought, regulatory change)
• Mitigation and adaptation strategies—e.g., container lightweighting, renewable energy, supplier audits
• Track progress and address any data or process gaps.

4. Documentation and Assurance

• Retain supporting evidence: invoices, EPDs, logistics records, supplier attestations.
• CARB’s July 2025 guidance confirms that a good-faith effort requires use of the GHG Protocol and preparation for limited assurance by an independent third-party verifier.

Global and Downstream Implications

Preparing for EU Exports – CSRD & PPWR

Many cannabis beverage makers are ramping up export to Europe, where regulators require overlapping disclosures under the Corporate Sustainability Reporting Directive (CSRD) and the Packaging & Packaging Waste Regulation (PPWR).

• Streamline data gathering: Harmonize your life-cycle and risk data collection for both CA and EU statutes to reduce technical debt and avoid rework (SPGlobal).
• Packaging recyclability, reused content, and EPR compliance (as under California SB 54—see CannabisRegulations.ai blog) will connect these programs for cannabis exporters.

California Producer Responsibility & Fee Impacts

• Companies under SB 253 will incur an estimated annual reporting fee of $3,100 and, for SB 261, about $1,400 per year (White & Case).
• These costs, as well as personnel and technology investments, should be budgeted for 2025 project planning.

Cannabis Industry Takeaways

For Brands and Manufacturers

• Engage suppliers now—request emissions and risk data for all major input categories.
• Educate operations, procurement, and compliance staff on GHG Protocol scopes and data quality expectations.
• Consider contractual requirements for emissions disclosure from key vendors for future procurement cycles.
• Implement LCI tools and audit supplier documentation to ensure readiness by Q1 2026.

For Beverage Distributors

• Secure data-sharing agreements with logistics providers and co-packers.
• Collect comprehensive records of freight, warehousing, and cold-chain transport emissions.

For Small Businesses

• Prepare for large customers to demand upstream data in 2025.
• Use the build year to enhance data systems—even if not directly in scope for reporting.

For EU Exporters

• Assess overlap between CA and EU rules.
  
• Design systems to enable dual reporting: SB 253/261, CSRD, and PPWR.

Key Compliance Dates (2025–2027)

• January 1, 2026:
  First SB 261 climate-risk reports due; SB 253 Scope 1 / 2 GHG emissions due
• 2027:
  First SB 253 Scope 3 (supply chain) reporting due
• 2025:
  Critical build year—primary data collection, supplier engagement, and process design

Enforcement and Penalties

• Noncompliance may result in regulatory fines, increased insurance premiums, and exclusion from ESG-focused investor or retail programs.
• CARB will maintain lists of in-scope entities and may require audits or spot checks (CARB Guidance PDF).

Conclusion: Act Now to Gain Competitive Ground

It’s clear that cannabis climate disclosure, SB 253, SB 261, and supplier data for THC beverage cans will dominate the regulatory landscape for California businesses through 2026 and beyond. Those who take early action—by collecting robust Scope 1–3 data and aligning reporting with global trends—will minimize compliance costs, impress investors, and future-proof their sales channels.

Need help preparing your cannabis beverage operation, packaging workflow, or export compliance? Visit CannabisRegulations.ai for the latest industry-specific resources, compliance tools, and regulatory updates.