Ceres’ Steven Rothstein testifies on Capitol Hill in support of a proposed rule to bolster the federal supply chain from climate risks

Steven Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets, urged U.S. House lawmakers today to support a proposed rule that would ensure a science-based approach to managing climate risks in the federal supply chain.  

Rothstein delivered testimony before the U.S. House Committee on Science, Space, and Technology in support of the Federal Supplier Climate Risks and Resilience Rule, proposed by the Federal Acquisition Regulatory (FAR) Council in November 2022.   

“This proposal makes the United States stronger,” Rothstein testified. “Currently, there is no focused effort to understand and manage the climate risk in these supply chains. As highlighted in many comments on the proposal, this blindfolded approach to procurement increases the burden of climate change on taxpayers. With focused attention to climate risk, the federal government can better identify opportunities for building resilience and saving money.” 

The U.S. government is the largest purchaser of products and services worldwide, spending over $630 billion in 2022. The rule would require major federal suppliers to annually disclose greenhouse gas (GHG) emissions, science-based targets for emissions reductions, and climate risk management strategies. 

Given the growing financial risks posed by the climate crisis, it is critical for the federal government to analyze the climate-related risks and opportunities in their supply chain and build a long-term strategy for resilience. Rothstein emphasized that reducing the increasing climate risks associated with the federal government’s operational and supply chain emissions can only be achieved with the full participation of its major contractors.

“The proposed rule takes critical steps to minimize burdens on the contracting community: by offering a suite of waivers and exceptions; and leveraging private standards that are in widespread use across the private sector,” Rothstein added. “Our sense is that the best approaches adhere to two guiding principles: respect for science and leveraging the important work that private sector leaders have already undertaken in partnership with civil society.” 

Through the proposed rule, federal procurement decisions will be informed by critical information on climate risks and opportunities, allowing the government to use its purchasing power to strengthen the stability and resilience of the U.S. economy.  

Read Steven Rothstein’s full oral and written testimony.  

About Ceres Accelerator for Sustainable Capital Markets 

Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. The Ceres Accelerator for Sustainable Capital Markets is a center of excellence within Ceres that aims to transform the practices and policies that govern capital markets to reduce the worst financial impacts of the climate crisis. It spurs action on climate change as a systemic financial risk—driving the large-scale behavior and systems change needed to achieve a net zero emissions economy through key financial actors including investors, banks, and insurers. The Ceres Accelerator also works with corporate boards of directors on improving governance of climate change and other sustainability issues. For more information, visit ceres.org and ceres.org/accelerator and follow @CeresNews.