New York’s Climate Corporate Data Accountability Act for Fashion

Status: Passed NY Senate, pending Assembly vote and Governor's signature

TL;DR

• WHAT: Mandatory public disclosure of Scope 1, 2, and 3 emissions, aligned with the GHG Protocol and subject to third-party assurance.
• WHO: Companies with >$1B global revenue doing business in New York.
• WHEN: Scope 1 & 2 reporting starts in 2028 (on 2027 data), with Scope 3 following in 2029 (on 2028 data).

With California’s SB 253 already setting requirements for corporate climate reporting, New York is advancing a similar emissions disclosure framework through the Climate Corporate Data Accountability Act (S9072A).

The bill is currently proposed legislation and needs to pass Assembly and be signed into law by the Governor. If adopted, in-scope fashion companies would begin reporting Scope 1 and Scope 2 emissions from 2028, with Scope 3 reporting starting in 2029.

This timeline means apparel and footwear brands should begin preparing now by building data collection processes across operations and supply chains, aligning calculations with the GHG Protocol.

Looking for a Carbon Accounting solution? Find our complete, hands-on guide to Carbon Accounting and the GHG Protocol for apparel and footwear brands here.

Now, let’s break down New York’s Climate Corporate Data Accountability Act!

What Does New York’s Climate Corporate Data Accountability Act Mean for Fashion Brands?

The New York Climate Corporate Data Accountability Act (S9072A) introduces a mandatory greenhouse gas (GHG) emissions disclosure requirement for large brands doing business in New York.

Under the bill, fashion brands must annually measure and publicly disclose their emissions across:

• Scope 1 – direct emissions from owned or controlled operations.
• Scope 2 – indirect emissions from purchased energy.
• Scope 3 – indirect emissions across the value chain.

Emissions must be calculated using GHG Protocol Corporate Standard and Scope 3 Standard. This means apparel and footwear brands may use a combination of primary data, secondary data, and modeled data (including industry averages), in line with GHG Protocol guidance for Scope 3.

To reduce duplication, brands can submit existing reports prepared for other frameworks or regulations (such as California SB 253 or Corporate Sustainability Reporting Directive), as long as those reports meet the requirements of this law.

Emissions Data Disclosure Made Public

Reporting brands must publicly disclose their emissions data through a centralized reporting portal (which will be set in place by the end of the next year by the Department of Environmental Conservation).

All reported emissions data will then be made publicly available through a digital platform, where consumers can access company-level disclosures, aggregated datasets, and multi-year trends. Therefore, each disclosure must clearly identify the reporting entity by including its legal name, trade or assumed names, subsidiaries, and associated branding such as logos.

Which Apparel and Footwear Brands Will Be Affected by New York’s Climate Corporate Data Accountability Act?

The Act applies to large apparel and footwear brands doing business in New York. A fashion company is in scope if it meets both conditions:

1. Business activity in New York: This means the brand operates in New York and generates revenue from activities in the state. This applies broadly to fashion brands, including through retail, wholesale, or e-commerce sales.
2. Revenue threshold: The brand has more than $1 billion in total global annual revenue.

This applies to both U.S. and international brands.

What Is the Compliance Timeline for Fashion?

The Act introduces a phased implementation, with reporting and assurance requirements increasing over time.

• By December, 2027: The Department of Environmental Conservation (DEC) is expected to establish and publish the final reporting framework and technical guidelines.
• 2028 (Initial reporting phase): Brands begin disclosing Scope 1 and Scope 2 emissions on 2027 data.
• 2029 (Scope 3 Expansion): Reporting requirements extend to Scope 3 emissions.
  
• Scope 1 and 2 assurance: limited assurance in 2028, reasonable assurance in 2032

Note: For apparel and footwear brands with complex global supply chains, the Scope 3 requirement is particularly significant. It requires collecting data beyond direct operations, including raw material sourcing and manufacturing at supplier facilities, making early preparation necessary despite the 2028 deadline.

Penalties for Non-Compliance

The Act allows the New York Attorney General to impose civil penalties for non-compliance, including non-filing, late filing, or failure to meet reporting requirements. Penalties can reach up to $100,000 per day, with a maximum of $500,000 per reporting year.

In enforcing penalties, the Attorney General must consider both the company’s past compliance and whether it made good faith efforts to meet the requirements.

For Scope 3 emissions, the law provides some flexibility. Companies are not subject to penalties for misstatements if the disclosures are made with a reasonable basis and in good faith. In addition, between 2029 and 2032, penalties related to Scope 3 apply only in cases of non-filing, not for inaccuracies in the data.

Carbonfact: Carbon Accounting Platform for Fashion

Carbonfact is Carbon Accounting platform built for fashion, helping brands like Everlane, Carhartt, and U.S. Polo ASSN to measure, report, and reduce their carbon emissions.

Here is how Carbon Accounting process looks with Carbonfact platform:

• Flexible data ingestion: platform ingests energy bill, facility information, product data, BOMs, care labels, purchase orders, supplier information, and factory data in whatever format you already use.
• Automated data cleaning: Carbonfact automatically cleans and consolidates your data, minimizing manual effort and errors.
• Data gap filling: we fill missing values using T1–T5 supplier data, verified through running over 50 million apparel and footwear LCAs.
• Auditability: view the source, method, and emission factor behind every calculation. Aligned with GHG Protocol and reviewed by PwC.
• Accurate data: 150K+ fashion-and region-specific emission factors ensure accurate results – even when your data isn’t perfect.
• Factories: a powerful platform feature where you can easily manage and update your factories' energy data directly on our platform heat mixes, meters, and utility bills.
• Carbonfact AI Copilot: AI assistant inside the Carbonfact platform that answers questions about features, science, and methodology, with every reply linking back to the official documentation.

Curious to see how Carbonfact helps apparel and footwear brands report carbon emissions? Read all about it in Samsøe Samsøe 2024 Impact Report – Page 15!

Resources

Senate Bill S9072A – The New York State Senate