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Home Industry News

AIA Raises Concerns Over Proposed Supply Chain GHG Disclosure Requirement for Federal Contractors

by Jane Edwards
May 8, 2023
in Industry News, News
AIA Raises Concerns Over Proposed Supply Chain GHG Disclosure Requirement for Federal Contractors

The Aerospace Industries Association has urged the Office of Management and Budget to block a Federal Acquisition Regulation Council proposal that would direct certain federal contractors to report their greenhouse gas emissions throughout their supply chains.

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AIA President and CEO Eric Fanning said in a statement published Wednesday the FAR Council proposal comes with “impractical” requirements and “should be sent back to the drawing board.”

“Our industry has set a number of goals to cut emissions and remains committed to achieving net-zero carbon emissions by 2050. Trying to comply with onerous, impractical – and in this case, impossible – requirements only hinders our progress,” noted Fanning, a previous Wash100 awardee.

Remy Nathan, senior vice president of policy at AIA, wrote a letter to OMB Director Shalanda Young, expressing concerns over the proposal’s purportedly challenging requirement for Scope 3—to tabulate emissions resulting from activities not controlled or owned by the contractors.

“Attempting to calculate these emissions would require companies to set up new, costly, complex data collection systems—for data that is largely outside of their control and provided by entities who are likely unable to accurately calculate their own emissions information,” Nathan wrote in the letter.

Nathan also cited the administrative burden the proposal would bring to small businesses.

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