Surely, human beings are the smartest species to ever walk the earth, but despite that, we retain a pretty dismal record at not making mistakes. This has already been reinforced a few times throughout our history, with each testimony practically forcing us to look for a defensive cover. We will, however, go on to solve our conundrum in the best possible manner, and we’ll do so by bringing dedicated regulatory bodies into the fold. Having a well-defined authority across every area was a game-changer, as it instantly gave us a safety cushion against our many shortcomings. Now, the kind of utopia you would expect from such a development did arrive, but at the same time, it was all quite short-lived. Talk about why that was the case, the answer has to keep technology at the heart of everything. You see, the moment technology got its layered nature to take over the scene, it allowed people an unprecedented chance to exploit others for their own benefit. In case this didn’t sound bad enough, the whole runner soon began to materialize on such a massive scale that it expectantly overwhelmed our governing forces and sent them back to square one. After a lengthy spell in the wilderness, though, it seems like the regulatory forces are finally ready for a comeback. If anything, the same has turned more and more evident over the recent past, and truth be told, a newly-introduced regulation should only solidify its traces moving forward.
The Biden Administration has formally proposed a new rule, which would require federal contractors to disclose their greenhouse gas emissions and make meaningful efforts to limit their pollution. According to certain reports, it will only apply on contractors receiving more than $7.5 million in annual contracts. Nevertheless, in an event where a federal contractor is generating more than $50 million, they also need to disclose “relevant categories” of their indirect pollution called Scope 3 emissions that might be coming from their own supply chains and from the use of their products. Beyond the wider disclosures, the rule puts forth a mandate for companies to share financial risks they face as a result of climate change in an effort to “strengthen the resilience of vulnerable Federal supply chains.”
“As the world’s largest purchaser of goods and services, the Federal government has a critical opportunity to leverage its spending power to help reduce climate risks and safeguard taxpayer dollars,” said Shalanda Young, Director, Office of Management and Budget. “This new proposed rule is an important step forward that will help us achieve our ambitious climate goals, promote efficiency, and increase the resilience of federal supply chains.”
The rule provides an interesting extension to US government’s ongoing push for reducing greenhouse gas emissions. To contextualize the statement, we must go back to December 2021, when President Biden signed off on an executive order that urged the country to reach a goal of net-zero emissions from its operations and procurement by 2050. This notably included purchasing only zero-emissions vehicles by 2035 and slashing building emissions in half by 2032.
The latest rule in question is currently open for public comment, with people having until 13th January 2023 to submit their relevant remarks.