Proposed Rule Would Require Government Contractors to Disclose Climate-Related Risks

Today, the Biden-Harris Administration released the Federal Supplier Climate Risks and Resilience Proposed Rule (also known as the Gas Emissions and Climate-Related Financial Risk Proposed Rule), which would require contractors of the federal government to disclose their climate-related risks. Of particular note:

Under the proposed rule:

• Federal contractors receiving more than $50 million in annual contracts would be required to publicly disclose 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.
• 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.
• All Federal contractors with less than $7.5 million in annual contracts would be exempt from the rule.

View the proposed rule, dated Nov. 14, 2022. The deadline for comments is January 13, 2023.

View the White House announcement.