Sources: White House Council on Environmental Quality, Office of Federal Chief Sustainability Officer; CP staff
The White House-proposed “Federal Supplier Climate Risks and Resilience Rule” outlines greenhouse gas (GHG) emissions disclosure requirements applicable to contractors involved in construction or delivery of other services for federal projects, facilities and agencies. “Major” contractors, or those booking more than $50 million annually in federal contracts, would have to disclose Greenhouse Gas Protocol-defined Scope 1, 2 and 3 emissions levels plus climate-related financial risks, and set GHG emissions reduction targets. “Significant” contractors, or those booking $7.5 million-$50 million annually in federal contracts, would have to report Scope 1 and Scope 2 emissions.
The proposed rule cites the global CDP (formerly Carbon Disclosure Project) and Science-Based Targets initiative (SBTi) GHG accounting mechanisms. It calls for contractors reporting Scope 1 and Scope 2 emissions figures through CDP or comparable protocol, and GHG emissions reduction target validation through SBTi. The White House Council on Environmental Quality will open the Federal Supplier Climate Risks and Resilience Rule to public comment through early January. Concurrently, the Department of Defense, General Services Administration and National Space and Aeronautics Administration will propose a rule, “Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk,” to amend the Federal Acquisition Regulation to mirror the “Federal Supplier Climate Risks and Resilience Rule” Major and Significant contractor guidelines. Federal contractors with less than $7.5 million in annual contracts would be exempt from the rules.