Establishes the "climate safe and responsible bank procurement act", which creates standards for the purchasing of bank services.
This bill establishes the “Climate Safe and Responsible Bank Procurement Act” and directs New York State to use climate-related criteria when purchasing banking services and selecting banks for underwriting state bond issuances or refinancings. It defines terms such as clean energy supply financing ratio, coal project, fossil fuel project, and new fossil fuel project, and it limits the affected banks to those with at least $100 billion in consolidated assets. The bill requires state procurement guidance for banking services to treat several climate disclosures and policies as positive components of best value, including disclosure of Scope 1, 2, and 3 emissions, disclosure of clean energy financing ratios, policies against coal support, commitments to phase out new fossil fuel infrastructure, and net-zero-by-2050 plans aligned with Science Based Targets initiative standards.
The bill also adds a new borrowing requirement for the state and its authorities, agencies, commissions, and corporations: beginning in calendar year 2027, they may not contract with or pay a bank for underwriting in bond issuances or refinancings unless the bank has disclosed Scope 1, 2, and 3 emissions in full compliance with the greenhouse gas reporting protocol. In addition, when choosing an underwriter, the state must consider the same climate-related criteria as positive factors in best-value determinations. The measure is framed as a procurement and financial-risk policy, rather than a direct regulation of banks, but it would influence which large banks are eligible for state business and how state entities evaluate them.
The bill would amend the state finance law by adding new climate-based procurement standards for banking services and a new section governing climate-safe borrowing requirements. It would require the state to incorporate emissions disclosure and fossil-fuel-financing policies into procurement and underwriting decisions, affecting centralized and discretionary contracting for services such as credit cards, payment processing, depository services, and bond underwriting. In practice, large banks with at least $100 billion in assets would need to meet or disclose specified climate metrics to remain competitive for state business, and state entities would be barred from using noncompliant banks for underwriting beginning in 2027.
No committee transcript or vote record is provided, so there is no direct evidence of support or opposition in the available history. Based on the bill text, the measure is clearly aligned with climate-policy goals and is presented as part of New York’s broader emissions-reduction and climate-risk framework. The overall tone is policy-driven and prescriptive, suggesting support among sponsors and climate advocates, but the absence of recorded votes or hearings means the broader legislative sentiment cannot be determined from the supplied materials.
The main points of contention would likely center on whether the state should use procurement and underwriting decisions to pressure banks on climate policy, and whether the criteria are too restrictive or burdensome. Potential critics may object to excluding or disadvantaging large financial institutions that continue to finance fossil fuel projects, while supporters would view the standards as a way to align public spending with climate goals and reduce financial risk. Another possible point of dispute is the bill’s reliance on disclosures and external standards such as Scope 1, 2, and 3 emissions reporting and Science Based Targets initiative alignment, which may be seen as complex, evolving, or difficult to verify.