Requires certain corporations to annually prepare a climate-related financial risk report for submission to the secretary of state and to make such report…

• Democratic2

◆ The sponsor's argument

Why Pete Harckham says this is needed

Climate change is not only affecting New York's environment and communi- ties but has various associated impacts on our global economy. These impacts are expected to accelerate in coming decades unless aggressive action is taken both to reduce greenhouse gas emissions and to adapt New York's environments, communities and economy. Global economic and climate policy leaders have conclusively established that the long-term strength of global and local economies will depend on their ability to withstand the climate change-related risks including physical impacts, economic transitions, and policy and legal responses, Failure of economic actors to adequately plan for and adapt to climate change-related risks to their businesses and to the economy will result in significant harm to New York and to individual residents and inves- tors, in particular to financially vulnerable New York residents who are employed by, live in communities reliant on, or have invested in or obtained financing from these institutions. New York is a global leader in addressing the causes of climate change and its impacts. In recent years, the state has enacted multiple legis- lative measures, including The Climate Leadership and Community Protection Act of 2019 to limit statewide greenhouse gas emissions to 60% of 1990 levels by 2030 and 15% by 2050, the formation of the New York state Climate Action Council and the Climate Justice Working Group in 2019, and enacting the 2021 Soil Health and Climate Resiliency Act that encourages management and optimization of soil health to mitigate and adapt to climate change. Leading voluntary initiatives have begun to develop frameworks for disclosure of climate change- and sustainability-related information, including the Financial Stability Board's Task Force on Climate-Related Financial Disclosures and the Sustainability Accounting Standards Board. The Department of Financial Services (DFS) has kickstarted this initi- ative by rolling out expectations of climate risk disclosure. New York must follow suit to other jurisdictions who have begun to clearly require private and public entities to develop and disclose sustainabil- ity policies, i.e. Illinois' Sustainable Investing Act and France's Energy Transition Law Article 173. Given business and financial institutions' contributions to climate change and vulnerability to its impacts on New York and the broader economy and the state's leadership in analyzing, addressing, and miti- gating climate risks, it is in New Yorkers' best interest to require disclosure of climate-related risks and risk-reduction strategies.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.