Government plans to require large contractor emissions reports


Federal regulators have proposed a new climate-reporting rule that would require large federal contractors to publicly disclose their greenhouse gas emissions, climate-related financial risks and science-based emissions’ reduction targets.

The new proposal, known as the Federal Supplier Climate Risks and Resilience Proposed Rule, would amend the Federal Acquisition Regulation (FAR). It was announced by the Department of Defense, General Services Administration and NASA. The agencies are recommending adding the climate reporting as a revision to the FAR, which governs federal contractors.

The federal government is the world’s single largest purchaser of goods and services, spending more than $650 billion in contracts in fiscal 2020 alone, according to the announcement.

The new proposal provides a targeted, risk-based approach by focusing primarily on major federal suppliers. The largest supplier category includes federal contractors receiving more than $50 million in annual contracts, and contractors with more than $7.5 million but less than $50 million in annual contracts.

A science-based target is a target for reducing GHG emissions that is in line with reductions that the latest climate science deems necessary to meet the goals of the Paris Agreement to limit global warming to well below 2 degrees Celsius (or 28.4 degrees Fahrenheit) above pre-industrial levels and pursue efforts to limit warming to 1.5 degrees C (34.7° F).

The SEC proposed rule change, first announced in March, would require registrants to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their businesses.

So, if you have government contracts, it is more than ever important to be able to measure all processes, for the greatest possible transparency.

IoT and telematics tracking in trucks can help on this mission. Fleet managers can then perform repairs to make them more fuel-efficient or replace them with newer, more economical alternatives. Similarly, data over time can highlight which routes lead to the highest diesel consumption, informing future route planning.

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