Third Partners, a full-service sustainability management consulting firm, is using AI-powered tools to give companies doing business in California a streamlined option for meeting the requirements of the state’s new climate law. California Senate Bill 261 (SB-261) mandates that all U.S. businesses with annual revenues exceeding $500 million publish biannual climate-related financial risk reports. The deadline to post the first report is January 1, 2026.

“This bill is a critical step toward corporate accountability and transparency around climate change; however, many companies are struggling to internally manage the new assessments, data collection, and reporting mechanisms required by the law,” explained John Haugen, principal and client director for Third Partners. “Our firm has developed a unique approach using AI tools and processes to help companies quickly meet the law’s expectations while also building value for their brands.”

SB-261 requires companies to detail their material financial risks and opportunities related to climate change impacting both immediate and long-term financial outcomes. Companies will need to anticipate, measure, and report on all relevant opportunities and vulnerabilities, from legal liabilities contributing to climate change to climate-related property damage and supply chain disruptions. Failure to comply with SB-261 will cost companies up to $50,000 a year in penalties, with potential legal action and reputation damage.

As a boutique firm of specialists in sustainability and business operations, Third Partners offers a highly competitive alternative to inflated consulting strategies and generic software products. Third Partners’ approach for meeting the requirements of SB-261 is efficient, grounded in the best sustainability practices, and actively managed from start to finish by the firm’s principal executives.

"Third Partners did a great job on our SB-261 disclosure. As a client, it was an easy project plan for us to follow and their use of technology tools made the process quite efficient and the result exceeded our expectations," according to Janine Musorafite, Chief Compliance Officer at Epic Staffing Group.

About Third Partners

Third Partners is a full-service sustainability management consulting firm dedicated to empowering organizations to drive business value and enhance their competitive edge. We achieve these results by offering strategic advisory, data management, and tailored solutions that align brand, product, and mission, ensuring companies meet the evolving expectations of buyers, investors, regulators and customers. Our clients include global brands, middle market leaders, and mission-driven startups who aspire to create more valuable and resilient companies.

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SB-261 requires companies doing business in California to detail their material financial risks and opportunities related to climate change impacting both immediate and long-term financial outcomes. The deadline is January 1, 2026.