Federal contractors must now report their greenhouse gas emissions
What happened
Federal contractors must now publicly disclose their greenhouse gas emissions and climate risks. This means companies wanting to do business with the US government will need to track and report their environmental impact.
Why it matters
The US government is the world's largest buyer of goods and services. By requiring its contractors to report emissions, it effectively forces a large part of the private sector to measure and manage its carbon footprint. This creates a new, mandatory data stream that will make it easier to compare companies' environmental performance.
The signal
Watch for the first wave of disclosures to see which companies struggle to meet the new reporting requirements and how the government uses this data in future contract awards.