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illuminem summarizes for you the essential news of the day. Read the full piece on ESG Dive or enjoy below:
🗞️ Driving the news: New York has reintroduced two climate bills—Senate Bills 3456 and 3697—aimed at mandating corporate climate risk and emissions disclosures
• If passed, companies operating in the state with revenues over $1 billion would need to report greenhouse gas emissions, while those exceeding $500 million would need to disclose climate-related financial risks
• The bills, modeled after California’s climate laws, could take effect as early as 2027
🔭 The context: SB 3456 would require companies to report Scope 1 and 2 emissions starting in 2027 and Scope 3 emissions by 2028, using the Greenhouse Gas Protocol
• SB 3697 mandates biennial reports on climate-related financial risks, aligning with the Task Force on Climate-related Financial Disclosures (TCFD) framework
• Similar bills introduced in 2023 failed to advance beyond committee review
🌍 Why it matters for the planet: Stronger corporate transparency on emissions and climate risks could push businesses to reduce their carbon footprint
• If enacted, these laws would align New York with California’s recent climate disclosure requirements, increasing regulatory pressure on major corporations
• Wider adoption of such laws could create a national standard for corporate climate accountability
⏭️ What's next: Companies are monitoring the bills’ progress, but legal experts say compliance efforts may be premature until they gain traction
• If passed, businesses already complying with California’s climate laws may face minimal additional regulatory burden
• Federal climate policy under President Trump’s second term could clash with state-led initiatives like this
💬 One quote: "It is unclear whether the current bills will gain traction, especially since they cover largely the same universe of companies as are required to report under California’s climate disclosure laws." — Ropes & Gray legal analysis
📈 One stat: Entities with more than $1 billion in revenue would be required to disclose Scope 3 emissions starting in 2028 under SB 3456
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