The U.S. government, acting through the Department of Defense, General Services Administration, and National Aeronautics & Space Administration, issued a proposed rule in November 2022 that would amend the Federal Acquisition Regulation (FAR) to require certain U.S. government contractors to disclose their greenhouse gas emissions (GHG) and climate-related financial risk, as well as set science-based targets to reduce their GHG emissions. The proposed rule implements section 5(b)(i) of Executive Order (EO) 14030 “Climate-Related Financial Risk” and is in furtherance of the EO’s recognition that the impacts of climate change present physical risk to assets and potential supply chain disruptions. In addition, the proposed rule would advance the Biden-Harris administration’s goal of achieving a net-zero emissions economy by no later than 2050.
Proposed Changes to the Federal Acquisition Regulation Focused on Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk
