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

Withdrawn

Overview

This proposed rule was withdrawn on January 13, 2025. Formally proposed in the fall of 2022, the Federal Supplier Climate Risks and Resilience Rule would have required almost all federal contractors to publicly disclose their greenhouse gas emissions. Major contractors would also have been required to disclose climate-related financial risks and set science-based emissions reduction targets. In addition to reducing emissions, the rule was 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 estimated that this rule would 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:

Withdrawn

Withdrawn

Withdrawn

timeline for compliance

Following the results of the 2024 Presidential election, this proposed rule was formally withdrawn in January 2025 by the Department of Defense, General Services Administration, and National Aeronautics and Space Administration.

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