ESG Quick Guide: New York’s proposed climate disclosure law

In January 2026, the CCDAA was introduced in the New York State Senate. The CCDAA then passed the New York State Senate on 10 February 2026 and now moves to the Assembly for consideration before heading to the Governor’s desk. 

If enacted, the Act would amend the Environmental Conservation Law by adding a new Article 74 and would also amend the State Finance Law to establish the Climate Accountability and Emissions Disclosure Fund.

The law would require entities doing business in New York that meet the revenue threshold to annually publicly disclose their Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions starting in 2028 and Scope 3 GHG emissions starting in 2029.

Reporting entities would be required to measure and report emissions in conformance with the GHG Protocol and the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. 

All reported data would be published on a centralised digital platform, making disclosures publicly accessible and allowing investors, regulators, and other stakeholders to review and compare corporate climate performance.

Unlike California’s dual-bill framework, the CCDAA covers only GHG emissions disclosures. It does not include a separate climate-related financial risk reporting component equivalent to California’s SB 261. 

The bill is currently pending in the New York State Assembly and has not yet been signed into law.

Unlike New York’s existing greenhouse gas reporting program (see our Quick Guide), which applies at the facility level, the CCDAA applies at the entity (company-wide) level.

Mandatory (if enacted)

The CCDAA disclosure requirements apply to “reporting entities”, which are defined as: 

• partnerships, corporations, limited liability companies, or other business entities formed under the laws of New York or any other U.S. state or District of Columbia, or under an act of the U.S. Congress,

• with total revenues in excess of $1 billion in the preceding fiscal year, including revenues received by all of the entity’s subsidiaries that do business in New York, and

• that do business in New York and derive receipts from activity in New York within the meaning of section 209 of the Tax Law.

  • A foreign entity shall not be considered to be doing business in New York exclusively by reason of carrying on in New York any of the activities enumerated in subsection (b) of section 1301 of the Business Corporation Law.

Unlike New York’s existing greenhouse gas reporting program (see our Quick Guide), which applies at the facility level, the CCDAA applies at the entity (company-wide) level, meaning that corporate ESG, finance, and compliance teams will likely need to be involved with compliance.

The New York State Department of Environmental Conservation (“DEC”) is tasked with adopting implementing regulations on or before 31 December 2027.

If enacted, the Act takes effect on the 180th day after it becomes law, with authority to promulgate necessary rules and regulations taking effect immediately. 

The DEC must adopt regulations by 31 December 2027.

Scope 1 and Scope 2 emissions reporting will be required starting in 2028 on a date to be determined by the DEC, and annually thereafter. Scope 1 and Scope 2 emissions reporting is based on the prior fiscal year.

Starting in 2029 and annually thereafter, reporting entities must publicly disclose their Scope 3 emissions to the emissions reporting organization for the prior fiscal year, on a schedule set by the DEC pursuant to regulations. 

On or before 1 January 2032, the DEC must review, and update as necessary, the public disclosure deadlines established for Scope 3 emissions reporting, to ensure that Scope 3 data is disclosed as close in time as practicable to the Scope 1 and Scope 2 reporting deadline.

The CCDAA requires reporting entities to annually disclose to the emissions reporting organization, and to obtain an assurance engagement performed by an independent third-party assurance provider on, all of the reporting entity’s Scope 1, Scope 2 and Scope 3 emissions. 

Specifically, reporting entities must: 

• Measure and report GHG emissions in conformance with the GHG Protocol and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, including guidance for Scope 3 calculations that detail acceptable use of both primary and secondary data sources, including industry average data, proxy data and other generic data. 

• Ensure that public disclosures maximize access for consumers, investors, and other stakeholders to comprehensive and detailed GHG emissions data across all three scopes, and are made in a manner that is easily understandable and accessible. 

• Include in their disclosure the name of the reporting entity and any fictitious names, trade names, assumed names, subsidiaries and logos used by the reporting entity. 

• Structure emissions reporting in a way that minimizes duplication of effort and allows a reporting entity to submit reports prepared to meet other state, national and international reporting requirements (including reports required by the federal government or other states, or reports voluntarily prepared using ISSB sustainability disclosure standards) as long as those reports satisfy all requirements of the Act. 

• Ensure that disclosures take into account acquisitions, divestments, mergers, and other structural changes that can affect GHG emissions reporting, disclosed in a manner consistent with the GHG Protocol standards and guidance (or an alternative standard, if adopted after 2035). 

• Pay an annual fee to the DEC.

The emissions reporting organization must create a publicly accessible digital platform to feature reporting entities’ emissions data. Disclosures must be made available within 90 days of receipt. The platform must allow consumers, investors, and other stakeholders to view reported data elements aggregated in a variety of ways, including multi-year data, in an easily understandable and accessible manner, with all datasets available in electronic format.

Reporting entities must obtain an assurance engagement performed by an independent third-party assurance provider. 

The reporting entity must ensure that a copy of the complete assurance provider’s report — including the name of the third-party assurance provider — is provided to the emissions reporting organization as part of, or in connection with, the reporting entity’s public disclosure. 

The assurance engagement for Scope 1 and Scope 2 emissions must be performed at a limited assurance level beginning in 2028 and at a reasonable assurance level beginning in 2032. 

On or before 1 January 2029, the DEC must review and evaluate trends in third-party assurance requirements for Scope 3 emissions and may, by that date, establish an assurance requirement for Scope 3 emissions. If any such requirement is established, the assurance engagement for Scope 3 emissions must be performed at a limited assurance level beginning in 2032. 

The Act’s reporting framework is expressly designed to minimize duplication of effort. 

A reporting entity may submit to the emissions reporting organization reports prepared to meet other state, national, and international reporting requirements — including any reports required by the federal government or other states, or reports voluntarily prepared using the ISSB  sustainability disclosure standards — provided that those reports satisfy all of the requirements of the Act.

Scope 1, Scope 2 and Scope 3 emissions reports may be consolidated at the parent level. 

If a reporting entity is included as a consolidated subsidiary in the consolidated financial statements of an ultimate parent entity, the ultimate parent entity may serve as the reporting entity for purposes of the Act. 

If a subsidiary of a parent company qualifies as a reporting entity, the subsidiary is not required to prepare a separate report, provided that the parent company prepares a report.

The Attorney General may bring a civil action against a reporting entity seeking civil penalties of up to $100,000 per day for willful failure to comply with the requirements of the Act or the DEC’s regulations, including for non-filing, late filing, or other failure to meet applicable requirements. Civil penalties shall not exceed $500,000 in a reporting year. 

In seeking civil penalties, the Attorney General must consider all relevant circumstances, including the violator’s past and present compliance with the Act and whether the violator took any good faith measures to comply and when those measures were taken. 

A reporting entity shall not be subject to a civil action for any misstatements regarding Scope 3 emissions disclosures made with a reasonable basis and disclosed in good faith. 

Penalties assessed on Scope 3 reporting between 2029 and 2032 shall only occur for non-filing.

Enforcement of the Act is vested in the Attorney General, who may bring civil actions seeking civil penalties against non-compliant reporting entities. 

The DEC is responsible for adopting implementing regulations and overseeing the reporting framework. 

The DEC must create or contract with an emissions reporting organization to develop a reporting program to receive and make publicly available the disclosures required by the Act. 

The DEC must prepare a report on the public disclosures made by reporting entities, considering at a minimum GHG emissions in the context of state GHG reduction and climate goals, and must issue that report to the Governor, the Speaker of the Assembly, and the Temporary President of the Senate, and publish it on the DEC’s website.

The CCDAA passed the New York State Senate on 10 February 2026 and now moves to the Assembly for consideration before heading to the Governor’s desk. 

If signed into law, the Act takes effect 180 days after enactment, with authority to promulgate implementing rules and regulations taking effect immediately. 

Key forthcoming milestones include (if enacted): 

• The DEC to adopt implementing regulations by 31 December 2027. 

• Emissions reporting organization to create a public digital platform by 1 July 2028. 

• Scope 1 and Scope 2 emissions reporting to begin in 2028 (on a date to be set by the DEC). 

• Scope 3 emissions reporting to begin in 2029 (on a schedule set by the DEC). 

• Climate Corporate Data Accountability Act (CCDAA) (NY SB 9072A) 

• Environmental Conservation Law (as amended by SB 9072A — new Article 74)

• State Finance Law (as amended by SB 9072A — new section 99-uu, establishing the Climate Accountability and Emissions Disclosure Fund)

• New York Tax Law, section 209

• New York Business Corporation Law, section 1301(b)

• Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (World Resources Institute / World Business Council for Sustainable Development)

• Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (World Resources Institute / World Business Council for Sustainable Development)

• US: SEC Moves to Rescind Climate Related Disclosure Rules
• ESG Quick Guide: New York GHG reporting program
• ESG Quick Guide: California climate disclosure laws
• ESG Quick Guide: ISSB standards
• Other ESG Quick Guides