US Federal Supplier Climate Risks and Resilience Rule

The US Federal Supplier Climate Risks and Resilience Rule was proposed in November 2022, as part of the current administration’s goal to achieve net zero emissions by 2050. It requires major federal contractors to publicly disclose their greenhouse gas emissions and climate-related financial risks, as well as set emissions reduction targets. The rule is designed to strengthen the resilience of federal supply chains and help the federal government reduce its own climate impact.

The rule would apply to federal contractors that receive more than $50 million in annual contracts.

These contractors would be required to:

• Calculate and disclose their greenhouse gas emissions from direct operations, as well as indirect emissions from purchased electricity and other sources.

• Identify and assess the climate-related financial risks that they face, such as the risk of physical damage from extreme weather events or the risk of increased costs for energy and commodities.

• Set science-based emissions reduction targets and report on their progress towards these targets.

The rule is still in the proposal stage, and it is not yet clear when it will be finalised or implemented. However, it is a significant step forward in the Biden administration's efforts to address climate change.