FAR Council Extends Comment Period on Proposed Rule to Require Federal Contractors to Disclose Information on Their Greenhouse Gas Emissions and Climate-Related Financial Risk
In tomorrow’s Federal Register, the Federal Acquisition Regulatory (FAR) Council will announce an extension– from January 13, 2023 to February 13, 2023 – of the comment period for its proposed rule to require certain federal contractors to disclose information regarding their greenhouse gas (GHG) emissions and climate-related financial risk and set science-based targets to reduce their GHG emissions. The rule implements elements of President Biden’s May 20, 2021 Executive Order (EO) 14030, “Climate-Related Financial Risk.”
This proposed rule would require certain federal contractors to: (1) complete an inventory of GHG emissions; (2) complete an annual climate disclosure, including a climate risk assessment process and any identified risks, and post those disclosures on a publicly-available website; and (3) develop science-based targets for reducing GHG emissions to meet the goals of the Paris Agreement, an international treaty to address climate change. The proposal includes distinct requirements that are generally applicable to: (1) “significant contractors,” defined as those that received between $7.5 and $50 million in federal contract obligations in the prior fiscal year; and (2) “major contractors,” defined as those that received more than $50 million in federal contract obligations in the prior fiscal year.
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