New York State legislators have passed the Climate Corporate Data Accountability Act, a bill that would require major companies to disclose their greenhouse gas (GHG) emissions across their operations and value chain. The legislation mandates annual reporting of Scope 1, Scope 2 and Scope 3 emissions by U.S.-based companies with annual revenues exceeding $1 billion, with reporting requirements phased in beginning in 2027.

Under the new framework, the New York Department of Environmental Conservation will adopt regulations to enforce the reporting obligations. Proponents say the law is intended to increase transparency in corporate climate impacts, reduce greenwashing, and align New York with emerging state-level emissions disclosure standards similar to California’s SB 253.

The bill now moves to New York Governor Kathy Hochul for signature before it can become law. In addition to the climate reporting measure, the state Senate also approved other environmental initiatives, including restrictions on certain PFAS-containing products and tougher ambient air quality standards.

Supporters argue that broad GHG transparency will strengthen regulatory oversight and empower investors, consumers and stakeholders to make more informed decisions about corporate climate performance. Critics, however, may raise concerns about compliance costs and reporting complexity for companies with global value chains.