New York Advances Mandatory Corporate Climate Disclosure

New York has taken another major step toward making climate change information public. The New York Climate Corporate Data Accountability Act (S9072A) has passed the State Senate and is expected to be signed by the New York Governor Kathy Hochul. If enacted, the law will require companies with more than US$1 billion in annual revenue doing business in New York to publicly disclose their greenhouse gas emissions, including Scope 1, Scope 2, and, eventually, Scope 3 (supply chain) emissions, beginning in 2027, ESG Today reported.

The bill requires annual reporting aligned with recognized greenhouse gas accounting standards, includes phased implementation and third-party assurance requirements, and provides for a transition period.

With New York moving forward and joining states like California that already have similar climate rules, two of the biggest U.S. economies are now requiring companies to report on climate issues. Together, these states account for a large share of the U.S. economy, underscoring that this is not a small issue but a significant market shift. Still, California’s climate reporting laws are being challenged in court by the U.S. Chamber of Commerce. The Trump administration also has pulled back on federal regulations aimed at providing transparency into corporate and industrial emissions, according to ESG Today.

While the New York law is aimed at large companies, its effects will also reach their suppliers, including the cleaning industry, said Stephen Ashkin, Green2Sustainable CEO and Co-Chair of the ISSA Sustainability Committee. Large customers, such as companies, hospitals, universities, property managers, and government agencies, will have to report their emissions. Once supply chain reporting is fully in place, these companies will need reliable emissions information from their suppliers, including those who provide cleaning products and services.

Climate-risk transparency is shifting from voluntary to expected. Companies that build practical emissions reporting capabilities now will be better positioned to support customers, strengthen relationships, and differentiate in a competitive marketplace, Ashkin said. Reporting on sustainability is increasingly about managing risks, retaining customers, and staying in the market.