WASHINGTON, D.C. (November 10, 2022) – Today, the Biden Administration proposed a new rule requiring major Federal contractors  to disclose Scope 1, Scope 2, and relevant categories of Scope 3 emissions and to set emissions reduction targets.  

Under the proposed rule, Federal contractors receiving more than $50 million in annual contracts must report greenhouse gas emissions via the Carbon Disclosure Project (CDP) in alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) and must establish science-based emissions reduction targets validated by the Science Based Targets initiative (SBTi). Federal contractors receiving less than $50 million but more than $7.5 million are required to report Scope 1 and Scope 2 emissions.  

The proposed rule cites Greenhouse Gas Protocol, the leading international standard-setter, as the emissions accounting standard to which Federal contractors must adhere in the reporting process. At the foundation of the proposed rule’s disclosure requirements, GHG Protocol will be a critical part of the Administration reaching its goal of net-zero emissions procurement by 2050.  

Following is a statement from Pankaj Bhatia, Global Director of Greenhouse Gas Protocol:  

“This proposed rule adds rigor and transparency to the U.S. government’s efforts to drive down emissions. It also raises the bar for other governments and businesses to leverage their influence and opportunities across the supply chains to advance ambitious climate goals. 

“The Administration’s adoption of GHG Protocol’s Scope 3 Standard for major Federal contractors demonstrates that evaluating supply chain emissions is strategic and critical  for facilitating emissions reductions. Scope 3 emissions account for an average of three-quarters of a company’s emissions. Last year more than 3,300 companies reported Scope 3 emissions in the public CDP dataset.  

“With this proposed rule, the Administration is providing a valuable model for other stakeholders as it becomes increasingly important for governments and corporations to provide visibility into their climate risks and resilience across their supply chains.”