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:
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.
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