New York has reintroduced two significant climate disclosure bills, Senate Bill 3456 and Senate Bill 3697, aimed at enhancing corporate transparency in sustainability reporting. These bills align with California’s recent climate laws and reinforce New York’s commitment to ESG and a carbon neutral strategy. 

Senate Bill 3456, also known as the Climate Corporate Data Accountability Act, mandates that companies with revenues exceeding $1 billion and operating in New York disclose their Scope 1, 2, and 3 greenhouse gas emissions. Businesses must report emissions data in line with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. Scope 1 and 2 emissions reporting begins in 2027, with Scope 3 data required by 2028. 

The bill also includes third-party assurance requirements, ensuring the accuracy of emissions disclosures. Reporting entities must submit data to an emissions reporting organization designated by New York, which will publicly disclose the reports. Non-compliance could result in penalties of up to $100,000 per day, not exceeding $500,000 annually. Additionally, companies may submit reports prepared for other regulatory frameworks if they meet New York’s requirements, reducing redundancy and streamlining compliance efforts. 

Senate Bill 3697 focuses on climate-related financial risk reporting. Companies with over $500 million in annual revenue must publish reports every two years, beginning in 2028, outlining their climate-related financial risks. The reports must align with the Task Force on Climate-related Financial Disclosures framework or equivalent standards. Companies already complying with similar regulations at the state, national, or international level can use existing reports to meet these requirements. Non-compliance may lead to penalties of up to $50,000 annually. The bill also allows for flexibility in reporting by permitting consolidated parent companies to file on behalf of subsidiaries, reducing compliance burdens. 

These bills mark a significant step toward strengthening New York’s ESG regulations and reinforcing corporate accountability in climate-related disclosures. If passed, they will support New York’s long-term carbon neutral strategy by ensuring transparency and guiding sustainable investment decisions. By integrating with existing standards and frameworks, these regulations aim to create a more cohesive and effective approach to corporate sustainability reporting. 

Fuentes: 

https://www.jdsupra.com/legalnews/new-york-reintroduces-climate-5677680/ 

https://www.esgdive.com/news/new-york-reintroduces-bills-seeking-climate-risk-emissions-disclosures/739365/#:~:text=from%20your%20inbox.-,New%20York%20reintroduces%20bills%20seeking%20climate%20risk%2C%20emissions%20disclosures,State%20as%20early%20as%202027. 

https://www.ropesgray.com/en/insights/viewpoints/102jyry/climate-disclosure-bills-reintroduced-in-new-york-fast-facts-and-take-aways 

https://www.grip.globalrelay.com/climate-disclosure-bills-reintroduced-in-new-york-fast-facts-and-take-aways/