New Emissions Rule right around the corner
The White House proposed the Federal Supplier Climate Risks and Resilience Rule on November 10. With the new rule, larger Federal contractors will face new requirements to report data on their specific greenhouse gas emissions to protect the Federal Government’s supply chains from climate-related financial risks. (MeriTalk November 11, 2022)
According to the White House the rule, “would require major Federal Contractors to publicly disclose their greenhouse gas emission and climate-related financial risks and set science-based emissions reduction targets.” (ibid)
The White House said, “under the proposed rule, the largest suppliers including Federal contractors receiving more than $50 million in annual contracts would be required to publicly disclose specific Scope 1, Scope 2, and relevant categories of Scope 3 emissions, disclose climate-related financial risks and set science-based emissions reduction targets. Federal contractors with more than $7.5 million but less than $50 million in annual contracts would be required to report Scope 1 and Scope 2 emissions. All Federal contractors with less than $7.5 million in annual contracts would be exempt from the rule. Small businesses with over $7.5 million in annual contracts would only be required to report Scope 1 and Scope 2 emissions under the proposed rule.” These disclosures and rules help to contribute to President Biden’s Federal Sustainability Plan. (White House Fact Sheet November 10, 2022)
The types of emissions that require disclosure are direct emissions, indirect emissions from purchased energy, and indirect value chain emissions. (MeriTalk November 11, 2022)
The White House said, “the proposed rule leverages widely-adopted third-party standards and systems that many Federal contractors already use when disclosing their emissions and setting emissions reduction targets, including the DCP environmental reporting system, the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations, and the Science Based Targets Initiative (SBTi) criteria.” (ibid)
The proposed rule is issued through public comment by the Federal Acquisition Regulatory Council (FARC) and amends the Federal Acquisition Regulation (FAR). (ibid)
Questions concerning the new Emissions Rule and the reporting requirements? Give us a call.