The Biden Administration will propose a rule “in the very near future” requiring major vendors supplying products and services to the federal government to report their greenhouse gas emissions and other climate-related risks. The proposal is expected to be similar to the Securities and Exchange Commission’s recently proposed climate disclosure rule for public companies.
The forthcoming proposal for federal contractor disclosures is consistent with President Biden’s Executive Order on Climate-Related Financial Risk, which tasked the Federal Acquisition Regulatory Council with amending procurement regulations to require climate disclosures from federal suppliers.
The proposal is just one element of the Administration’s Federal Sustainability Plan, issued in December 2021. The Federal Sustainability Plan aims to use the federal government’s procurement power to achieve ambitious net-zero targets, with the goal of shifting to net-zero procurement by 2050 and 100% carbon-free electricity by 2030.
When finalized, the rule will impact how federal contractors determine and disclose greenhouse gas emissions metrics. WilmerHale continues to closely monitor the Biden Administration’s rulemaking activity affecting ESG disclosures and is available to assist clients navigate the dynamic landscape.