April 5: Today E3G joined other US civil society members in urging US authorities to finalize rules that would improve the resiliency of taxpayer funded supply chains. This would be achieved by requiring major US federal government contractors to both inventory, and disclose, greenhouse gas emissions (GHG) (including Scope 3). Major US government contractors would also be required to set science based emission reduction targets and have transition plans based on international best practices.
Since the US government is the world’s single largest buyer of goods and services, purchasing over $630 billion in the last year alone, adoption of the rule would have global impact. Many US federal government contractors already report GHG emissions (including Scope 3). Mandating these disclosures will improve the US government’s ability to protect its supply chain from climate-related financial risks on a more standardized basis, as well as improve supply chain reliability for national security purposes. It would also mitigate the ongoing climate crisis through contractors’ commitment to reductions in GHG emissions.
Finalizing this rule in the US is consistent with policies that E3G is urging the European Union to take up. In its new Report on European Prosperity, done in conjunction with World Wildlife Fund and Share Action, E3G urges European Union authorities to take steps to ‘green public procurement’.
Other governments are also leveraging the public procurement process to improve supply chain resiliency in response to climate change, as noted and supported by both the Coalition for Finance Ministers for Climate Action, as well as Organization for Economic Development and Cooperation.
Quotes:
Clarence Edwards, Executive Director, Washington DC Office for E3G said:
“All governments are confronting the adverse impacts that climate change has on their supply chain’s resiliency. Improving resiliency, while at the same time achieving reductions in GHG emissions, helps to bolster national security. We urge US authorities to move quickly to finalize these procurement rule proposals.”
Elizabeth Jacobs, Senior Specialist, Sustainable Finance at E3G, said:
“Using the US’s very substantial purse strings to level the playing field for large government contractors, as well as promoting GHG emissions reductions by mandating science based transition plans, could be a real game changer. It is hard to imagine a more timely and appropriate way to protect the US taxpayers that are the primary stakeholders in the procurement process.”
Sima Kammourieh, Programme Lead, Sustainable Finance, at E3G said:
“We are advocating for similar policy outcomes in the European Union. The green public procurement practices that will be ‘hardwired’ though the US rule’s adoption can have beneficial knock on effects. Improvement of government supply chain resiliency can foster shifts to the system that entice further private sector finance in the transition to a net zero economy.”
Available for comment
Elizabeth Jacobs, (EN), Senior Specialist, Sustainable Finance
m: 202-921-8187 | elizabeth.jacobs@e3g.org
Notes to Editors
- E3G is an independent climate change think tank with a global outlook. We work on the frontier of the climate landscape, tackling the barriers and advancing the solutions to a safe climate. Our goal is to translate climate politics, economics and policies into action. About – E3G
- For further enquiries email press@e3g.org or phone +44 (0)7783 787 863.
