California made headlines in 2024 with its Climate Accountability Package, the first comprehensive state law in the United States to mandate climate-related financial disclosures. Beginning in 2026 and 2027, thousands of large companies will be required to disclose greenhouse gas emissions and climate-related financial risks in line with global frameworks such as the ISSB (IFRS S1 and S2) and the TCFD. This landmark legislation set a precedent that is now influencing other states.
California will not remain the only state with such requirements. Across the country, new bills are emerging that mirror its model and expand the scope of climate financial disclosure beyond the West Coast. These proposed laws reflect growing recognition that climate change poses material financial risks to companies, investors, and the broader economy.
In New York, lawmakers have introduced bills that would require large corporations with annual revenues above $500 million or $1 billion to report both their climate-related financial risks and their greenhouse gas emissions, including Scope 1, Scope 2, and Scope 3. If enacted, these disclosure rules would begin phasing in by 2028. Colorado has also advanced legislation designed to hold billion-dollar companies accountable for their emissions, requiring comprehensive reporting similar to California’s approach. While the bill has been postponed for now, its introduction highlights the state’s commitment to expanding corporate climate reporting.
New Jersey is considering its Climate Corporate Data Accountability Act, which would mandate public disclosure of emissions for companies earning more than $1 billion in revenue. The proposal specifically requires Scope 3 reporting, making it one of the most ambitious state climate disclosure laws currently under review. Illinois is moving in the same direction, with legislation that would require large companies to begin reporting emissions and climate risks by 2027. The Illinois proposal is modeled closely on California’s framework and signals the rapid spread of climate financial disclosure requirements across multiple regions of the U.S.
The momentum behind these state-level initiatives is reshaping the U.S. climate disclosure landscape. Even if the Securities and Exchange Commission delays or narrows its proposed federal climate disclosure rule, states are already stepping into the gap. Investors, regulators, and stakeholders increasingly expect companies to comply with ISSB and TCFD standards, regardless of whether the mandate originates at the federal or state level.
For businesses, this means that climate disclosure is no longer optional. Companies operating nationwide will need to prepare for compliance across multiple jurisdictions. The most effective strategy is to adopt a unified approach now by aligning with ISSB and TCFD standards, conducting scenario analysis, and measuring greenhouse gas emissions across the value chain. This not only ensures readiness for evolving U.S. climate financial disclosure requirements but also builds resilience, strengthens investor trust, and future-proofs business strategy.
The bottom line is clear: California may have led the way, but New York, Colorado, New Jersey, and Illinois are all signaling that corporate climate disclosure will soon be a national expectation. Companies that act early will be positioned ahead of regulation, while those that delay risk falling behind in a fast-moving landscape of state climate disclosure laws.
Ready to get started? To learn how ClimaTwin can help you assess the physical and financial impacts of future weather and climate extremes on your infrastructure assets, capital programs, and investment portfolio, please visit www.climatwin.com today.
© 2025 ClimaTwin Corp. All rights reserved worldwide.
ClimaTwin® is a registered trademark of ClimaTwin Corp. The ClimaTwin logos, ClimaTwin Solutions™, Climate Risk Intelligence™, Climate Business Intelligence™, Future-proofing assets today for tomorrow’s climate extremes™ are trademarks of ClimaTwin Corp. All trademarks, service marks, and logos are protected by applicable laws and international treaties, and may not be used without prior written permission of ClimaTwin Corp.
###