New York State introduces mandatory climate disclosure bill

New York State is following California’s lead and working to make climate-related disclosures mandatory, even as federal policies shift in the opposite direction.

Senate Bill 3456, or the climate corporate data accountability act, aims to amend environmental conservation and state finance laws to mandate emissions reporting for all companies that do business in New York State and have more than US$1 billion in total annual revenue.

Due to be adopted by the end of 2026, the law would require these entities to disclose their emissions annually, after having them audited by a third-party assurance provider. According to the draft bill, Scope 1 and 2 emissions reporting would be made mandatory from 2027, and Scope 3 from 2028.

This means the law would come into effect one year after its equivalent in California, where companies are set to begin publishing climate disclosures in 2026.

Democratic states stand firm against Trump administration

The bill, sponsored by New York state senator Brad Hoylman-Sigal, comes at a time when Democratic states have vowed to stand firm in the fight against climate change, even as the new Trump administration dismantles Biden-era climate policies.

Last week for example, President Trump sparked backlash after freezing certain types of clean energy funding and federal grants for climate initiatives – though he later rescinded the block. He has repeatedly denied that climate change is real and vowed to let fossil fuel producers drill freely during his mandate.

In response, climate-friendly states are taking matters into their own hands. In December, a bipartisan coalition of 24 state governors committed to the country’s net zero future complemented the 2035 nationally determined contribution (NDC) announced by then-President Biden with their own collective pledge to reduce net greenhouse gas emissions by at least 61-66% below 2005 levels by 2035.

Private sector steps up to save Paris Agreement

The private sector has also shown signs that it is willing to fill the gaps left by the Trump administration around climate change: last week, UN Special Envoy on climate change and media billionaire Michael Bloomberg said he was mobilising funding from philanthropies and “other climate funders” to meet US climate obligations under the Paris Agreement.