By FOCUS, A Leonine Business
Often a trend setter on liberal issues, California led the way on corporate climate disclosure in 2023, enacting two first-of-their-kind laws requiring large businesses to report their greenhouse gas emissions with SB 253/Chapter 382 and SB 261/Chapter 383. Now, with a federal climate disclosure rule stalled in court, several states are moving to replicate and expand on California’s efforts.
Seven climate disclosure bills are currently pending in four states. In Colorado, HB 1119 would mandate annual emissions reporting from companies with over $1 billion in annual revenue, in line with California’s law. Illinois HB 3673 remains alive after a committee deadline was extended. The measure would require the state’s secretary of state to create rules for corporate climate reporting by July 2026. Similarly, New Jersey SB 4117, the “Climate Corporate Data Accountability Act,” would phase in emission disclosures over five years and permit the use of California’s reporting standards to ease compliance. New York is advancing several pieces of climate disclosure legislation. SB 3456 and its companion AB 4282 would require annual greenhouse gas disclosures and third-party verification, while establishing a dedicated fund to oversee implementation. Two additional bills, SB 3008 and SB 6308, include similar mandates.
These state-level efforts come as the U.S. Securities and Exchange Commission (SEC) faces uncertainty about its 2024 rule requiring companies to disclose climate-related financial risks. After several lawsuits were consolidated into State of Iowa, et al. v. SEC, the acting SEC Chair, Mark Uyeda, announced in February of this year that the agency is reconsidering its defense of the rule in court. This follows the Trump administration’s April announcement of a regulatory freeze with a specific focus on climate rules.
With federal action on hold, states, particularly those led by democratic majorities, are stepping in to fill the gap. These legislative proposals reflect a broader trend of state-led climate accountability, placing pressure on large corporations to track and disclose their environmental impact. FOCUS will continue to monitor climate disclosure policies in state legislatures across the country.
by Will Beacom April 14, 2025
