The Biden Administration recently proposed a new "Federal Supplier Climate Risks and Resilience Rule," requiring major federal contractors to disclose greenhouse gas emissions and climate risks.
The proposed rule could affect World Fuel customers with large federal contracts. Dr. Elise Fox, senior manager of sustainability solutions, World Kinect Energy Services, a division of World Fuel, provides an overview below.
Under the proposed rule:
• Federal contractors with more than $50M in contracts will have to disclose their Scope 1 and 2 emissions and any relevant Scope 3 emissions. They will also have to assess climate-related risks and have validated carbon reduction strategies.
• Federal contractors with annual contracts from $7.5M - $50M will have to disclose Scope 1 and 2 emissions but will not have to assess climate risks or have a validated carbon reduction strategy.
• Federal contractors with annual contracts below $7.5M will be exempt.
The proposed rule is open for the 60-day public comment period on the Federal Register, which closes on January 13, 2023.
In addition to the proposed Federal Supplier Climate Risks and Resilience Rule, World Fuel customers may also be affected by the SEC's climate disclosure rule proposed earlier this year affecting publicly traded companies.
World Kinect's Sustainability Advisory team offers solutions, like our carbon footprint reporting, to help you comply with the proposed rule(s) and develop a pathway to decrease carbon emissions. Our sustainability experts will analyze your operations and recommend a unique path tailored to meet your carbon reduction targets, such as energy efficiency, renewable energy solutions, and carbon offsetting.
Contact your sales executive or visit aviation.wfscorp.com/sustainability to get started on your path to net zero.
