Biden Order Poses Climate Disclosure Challenges for Contractors

President Joe Biden’s order to reduce the federal government’s carbon footprint poses a new reporting onus for contractors over climate information.

The Dec. 8 executive order directs the General Services Administration to track major contractors’ disclosure of greenhouse gas emissions, carbon reduction goals, and financial risk from climate change.

The order comes as they’re already bracing for the Securities and Exchange Commission to release its own climate disclosures rules. Neither the SEC nor the GSA has released detailed plans on potential disclosures—such as whether the required reporting would include both direct and indirect emissions.

Contractors that are publicly traded could ...