Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk

Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk

Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk

industry

Not specified

Location

United States

Status

Proposed

Overview

Formally proposed in the fall of 2022, the Federal Supplier Climate Risks and Resilience Rule would require almost all Federal contractors to publicly disclose their greenhouse gas emissions. Major contractors would also have to disclose climate-related financial risks and set science-based emissions reduction targets. In addition to reducing emissions, the rule is intended to promote clean energy and jobs, mitigate climate-related financial risk, and protect vulnerable supply chains from the increasing risk of climate disruptions. The Federal Acquisition Regulation Council estimates that this rule will affect 5,766 contractors.

Requirements

  • Disclose scope 1 and scope 2 emissions

  • Disclose scope 3 emissions (major suppliers only)

  • Disclose climate-related financial risks

  • Set science-based targets to reduce emissions

Affected Companies

Revenue thresholds

Federal contractors with annual billing over USD 7.5 million

  • Significant contractors are those billing more than USD 7.5 million per year. They are required to disclose scope 1 and scope 2 emissions.

  • Major contractors are those billing more than USD 50 million per year. They are required to disclose scope 1, scope 2, and scope 3 emissions, disclose climate-related financial risks, and set science-based targets to reduce emissions.

Company size

Not defined

Company Type

Not defined

Geography

United States

industry

Not specified

Status:

proposed, not yet finalized

proposed, not yet finalized

proposed, not yet finalized

timeline for compliance

One year after the publication of the final rule, significant and major contractors will be required to complete an inventory of their scope 1 and scope 2 emissions. Starting two years after publication of a final rule, major contractors will be subject to the compliance requirements of this rule as described above.

The information provided on this website is for general informational purposes only and does not constitute legal advice. While Carbon Direct strives to ensure that the content is accurate and up-to-date, we make no representations or warranties regarding the completeness, accuracy, or reliability of the information presented. Climate policies and related legal frameworks can be complex and may vary by jurisdiction; the information provided here may not apply to your specific circumstances.

We strongly advise consulting with your own legal counsel and other professional advisors before making decisions based on the content of this website. By using this site, you acknowledge that Carbon Direct is not liable for any actions taken or decisions made based on the information provided.

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