Climate-related Disclosures and Targets for Federal Contractors

The Climate-related Disclosures and Targets for federal contractors are part of a broader push for increased corporate transparency around sustainability practices. Proposed by the Federal Acquisition Regulatory Council (FAR Council), these rules aim to ensure that contractors working with the federal government disclose their climate-related risks, emissions, and sustainability targets.

If your company is a federal contractor, this regulation will require you to report on your greenhouse gas (GHG) emissions and establish targets to reduce them. The goal is to assess how federal contractors impact the climate and motivate them to play a bigger role in climate action.

This isn’t just another compliance checkbox—this is about demonstrating your company’s commitment to sustainability in a world where it’s becoming non-negotiable.

Who Needs to Comply with the Proposed Climate-related Disclosures?

The proposed rules apply to a broad range of federal contractors, including:

Significant contractors with contracts between €7.5 million and €50 million annually.
Major contractors with contracts valued at over €50 million annually (excluded from this focus).

If your company works with the federal government and falls within these thresholds, you’ll need to comply with these climate-related disclosures, which include reporting on GHG emissions and setting reduction targets.

Proposed Compliance Requirements for Significant Federal Contractors

To comply with the proposed Climate-related Disclosures and Targets for federal contractors, significant contractors (contracts between €7.5 million and €50 million annually) will need to meet several key requirements within specified timelines. Here’s a breakdown of the proposed compliance steps:

Completion of a GHG Emissions Inventory (Within 1 Year After Rule is Published)

Significant federal contractors will be required to complete a GHG emissions inventory and submit the data via the System for Award Management (SAM) website. The specific requirements are as follows:

Must report Scope 1 (direct emissions from operations) and Scope 2 emissions (indirect emissions from purchased energy).

This GHG inventory provides the foundation for federal climate-related disclosures and ensures that contractors are actively measuring their carbon footprint across operations. These disclosures will help demonstrate transparency and ensure accountability in how significant contractors manage climate-related risks and their emissions.

Significant contractors are encouraged to set science-based targets for GHG emissions reduction, though this requirement primarily applies to major contractors.

However, establishing voluntary emissions reduction goals can help significant contractors align their sustainability efforts with federal expectations and demonstrate a commitment to lowering carbon emissions.

Our Process for Climate-related Disclosures and Targets Reporting

At Vim Aeris, we understand that navigating new climate-related regulations can be overwhelming, especially with the intricacies of federal contracting. We simplify the process by guiding you through each step, ensuring you stay compliant while aligning with the federal government’s climate goals.

Here’s how we make it easy:

Step 1: Initial Compliance Assessment for Federal Climate Disclosures

We begin by assessing your company’s specific compliance requirements under the proposed climate-related disclosure rules. Based on your contract size and federal obligations, we’ll identify which specific disclosure and target-setting requirements apply to you.

This ensures your reporting is tailored to meet federal guidelines while staying aligned with your company’s sustainability strategy.

Step 2: Data Collection and Emissions Analysis

The next step is gathering the right data. Using our Excel-based tools, we make it simple to collect the data necessary to comply with federal climate reporting standards.

Here’s the data we typically collect:

GHG emissions from your operations, including fuel use, transportation, and energy consumption.
Sustainability targets, including your plans to reduce emissions and improve climate resilience.

This step provides the raw data we need to prepare your disclosure and reporting in line with federal requirements.

Step 3: Sustainability Reporting and Target Setting

Once we’ve gathered the necessary data, we prepare your climate-related disclosure report. This includes:

GHG emissions reporting, broken down by Scope 1 and Scope 2 emissions.
Recommendations for setting emission reduction targets if you choose to voluntarily adopt them.

Our reports are audit-ready, ensuring full compliance with the proposed rules and giving your company the transparency needed to maintain federal contracts.

Step 4: Submission and Ongoing Compliance Support

Finally, we help you submit your climate-related disclosures according to federal timelines and guidelines. And our support doesn’t stop there. We provide ongoing compliance support, helping your business stay on top of evolving regulations and continue setting meaningful sustainability goals.

Whether you need help with future reporting or adapting to updated guidelines, Vim Aeris is here to keep you compliant and on track.

Why Work with Vim Aeris for Federal Climate-related Disclosures?

Expert Guidance on Federal Regulations

Let’s face it—federal regulations can be complex. That’s why we’re here to simplify the process for you. At Vim Aeris, we guide you through every step of the climate-related disclosure process, ensuring compliance while using the data to improve your company’s sustainability performance.

Tailored Solutions for Federal Contractors

We know every business is different, especially when it comes to federal contracting. That’s why we don’t offer one-size-fits-all solutions. We tailor our climate reporting services to meet the specific requirements of your company, ensuring compliance while helping you achieve your long-term sustainability goals.

By working with Vim Aeris, you won’t have to navigate the complex web of climate regulations on your own. We handle the heavy lifting—from data collection to submission—so you can focus on running your business while staying compliant with every major climate framework.

Don’t get left behind. Let’s chart your course to a sustainable future together.