The Biden administration is proposing a rule that would require government contractors to publish their greenhouse gas emissions and reduction goals as well as financial risks from climate change.
The Federal Supplier Climate Risks and Resilience Rule was drafted in an aim to address and mitigate climate risks while fortifying federal supply chains, the White House said Thursday.
Under the draft policy, companies that are awarded more than $50 million in contracts per year would be required to report scope 1 or direct GHG emissions, scope 2 or indirect emissions, and relevant areas of scope 3, which are emissions resulting from activities not controlled or owned by the contractors. Federal suppliers that receive less than $7.5 million in annual contracts would be excluded from the mandate.
Existing third-party standards and systems such as the Task Force on Climate-Related Financial Disclosures Recommendations and the Science Based Targets Initiative criteria will be employed in the public disclosures.
The Federal Acquisition Regulation would also be amended to accommodate the new rule.
President Joe Biden mentioned the proposed policy at the 27th Conference of the Parties to the U.N. Framework Convention on Climate Change in Egypt.