A newly introduced bill in the New York State Assembly seeks to hold major corporations accountable for climate-related financial risks. The legislation, A07195, introduced by Assemblymember Otis, would require corporations operating in the state with annual gross revenues of at least $500 million to submit an annual climate-related financial risk report.
Referred to the Committee on Corporations, Authorities, and Commissions on March 21, 2025, the bill is designed to enhance corporate transparency regarding financial risks associated with climate change. If enacted, it would mandate covered corporations to submit reports to the secretary of state and make them publicly available.
Key provisions of the bill include:
The bill could have significant implications for the insurance and financial sectors. Insurers may need to adjust underwriting policies based on disclosed risks, potentially leading to increased premiums for corporations identified as high-risk due to climate vulnerabilities. Financial institutions may also be required to factor climate risk into investment and lending decisions, affecting corporate financing strategies.
Additionally, corporations may face pressure from investors and stakeholders to adopt more sustainable business practices to mitigate climate-related financial exposure. This could accelerate the adoption of climate-conscious corporate governance and risk management practices across industries.
While the bill aligns with growing trends toward corporate climate accountability, it is expected to face pushback from business groups concerned about regulatory burdens. Supporters argue that mandatory climate risk disclosure is essential for financial stability and long-term economic resilience.
