Biden Administration Proposes Mandatory Environmental Disclosure for Large Federal Contractors

The U.S. took a large step toward sustainability and protecting against climate change on Nov. 10 by introducing required environmental disclosure for most federal contractors. The proposed change, the Federal Supplier Climate Risks and Resilience Rule, requires major suppliers to report greenhouse gas (GHG) emissions and the environmental related financial risk to the CDP — formerly known as the Carbon Disclosure Project, now a not-for-profit environmental disclosure organization. This represents the second recently proposed change by the administration, as the new Federal Buy Clean initiative was announced in September. These actions support the U.S.’s goal to meet a 50% reduction in total GHG produced by 2030 and help increase supply chain resilience.