Dive Brief:
- The U.S. government plans to ask medium and large suppliers on its Alliant2 IT contractor list to disclose their greenhouse gas emissions annually and to set emissions goals.
- Approximately 40 percent of current contractors on the list already disclose their greenhouse gas emissions.
- An Executive Order signed by the President last year called on the seven largest federal agencies to consider contractors' greenhouse gas emissions and management practices during the procurement process.
Dive Insight:
More than 16% of the government's $450 billion spending is allocated to government contracts, so the federal procurement policy has a heavy hand in setting the standards for procurement practices. The market pressure has proven a remarkable force in pushing companies towards adopting sustainability goals.
As of 2015, over 4,000 companies had publicly disclosed their emissions through a third-party organization. Most recently, several shippers in an industry emissions-reduction group introduced a sustainability ranking scheme for freight carriers to differentiate companies during their procurement process.
In addition, the proposed rule claims "performing a GHG inventory provides insight into operations and opportunities for energy and operational savings that can result in both environmental and financial benefits."
