NORTHAMPTON, MA / ACCESSWIRE / November 10, 2022 / Today, the Biden Administration, acting through the Federal Acquisition Regulation (FAR) Council, proposed an update to its rule governing disclosure of climate-related information by federal suppliers. Ceres applauds the release of this proposal and looks forward to evaluating it and providing in-depth comments.
With its Federal Supplier Climate Risks and Resilience Proposed Rule, the FAR Council (comprised of the General Services Administration, Department of Defense, NASA and White House Office of Federal Procurement Policy), would require major federal suppliers to annually disclose GHG emissions, science-based targets for emissions reductions and climate risk management strategies.
The federal government spends roughly $630 billion on products and services annually. In 2020, Ceres provided the Biden transition team with recommendations on how the incoming Administration could use its procurement power, among other authorities, to catalyze investments towards a net zero future. In 2022, Ceres provided the FAR Council with a detailed roadmap on how to update its procurement rules to take climate-related risks and opportunities into account, including through new disclosure rules.
"With this rule, the Biden Administration will leverage the enormous procurement power of the federal government to reduce the risk from the government's supply chain while also reducing the government's carbon footprint and helping build markets for new zero-carbon and climate-resilient technologies," said Steven M. Rothstein, Managing Director of Ceres Accelerator for Sustainable Capital Markets at Ceres.
"President Biden has set a goal to reduce the nation's emissions by 50-52% by 2030. As the largest buyer of products and services in the world, the U.S. government has a unique opportunity to demonstrate best practices in reducing climate risk to its own assets and society as a whole," Rothstein added. "This requires identifying and selecting suppliers that are themselves reducing climate risk, including by working diligently toward achieving net-zero GHG emissions."
Comments are due to the FAR Council by January 13, 2023.
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world's greatest sustainability challenges. The Ceres Accelerator for Sustainable Capital Markets is a center of excellence within Ceres that aims to transform the practices and policies that govern capital markets to reduce the worst financial impacts of the climate crisis. It spurs action on climate change as a systemic financial risk-driving the large-scale behavior and systems change needed to achieve a net zero emissions economy through key financial actors including investors, banks, and insurers. The Ceres Accelerator also works with corporate boards of directors on improving governance of climate change and other sustainability issues. For more information, visit:ceres.org and ceres.org/accelerator and follow: @CeresNews.
Media Contact: Reginald Zimmerman