Is climate risk disclosure a policy burden—or an opportunity to make your business more resilient and competitive? In this episode, Watershed’s Nate Kimball and Barnaby Lynch break down California’s climate risk disclosure law (SB 261), how it links to TCFD, and a simple, practical path to get started with compliance. From physical risk (wildfire, heat, flooding) to transition risk (customer pressure, regulatory change), they share concrete examples, common pitfalls, and why “best efforts” in year one is both acceptable and smart. What you’ll learn: The two sides of climate risk: physical vs. transition—and why both matter What SB 261 expects (and how CARB’s “best efforts” makes year one doable) A practical first-90-days plan, including who to involve and what data to use How risk assessments uncover quick wins (from supply chain resilience to utility savings) Why framing this as enterprise risk (not “ESG”) unlocks leadership buy-in Key quotes: “We do have a crystal ball. We know how many of these risks will unfold in the next 10 years—so plan for them.” —Nate “Step one might be as simple as Googling a TCFD report in your sector and using it to get started.” —Barnaby “Year one is best efforts. It’s a journey. Start now and build from there.” —Barnaby Learn how Watershed can help your company comply with California SB 261 Timestamps: [00:00:10] The new reality: climate-related financial risk goes public in California [00:02:04] Icebreaker: jam jars, pellet grills, and everyday sustainability [00:04:44] Climate risk, explained for a third grader: physical vs. transition risk [00:07:41] SB 261 basics: what companies disclose and why it exists [00:09:48] Climate risk as enterprise risk: why this belongs with other core risks [00:15:14] Where to start: scopes, locations, suppliers, and free tools (Aqueduct) [00:17:23] CARB’s stance: best efforts in year one—start simple, improve over time [00:22:39] Beyond California: TCFD as the global foundation [00:28:00] Finance lens: markets want less uncertainty and more comparable data [00:32:16] Making the case: talk to the GC, CFO, and bring proof points [00:39:03] Closing: you can do this—because it’s the law, and it’s good business