Senator Schmitt, Republican Colleagues Demand Answers Regarding Proposed Biden ESG Rule for Federal Contractors

WASHINGTON – Today, Senator Eric Schmitt, alongside Sens. John Thune (R-SD), Dan Sullivan (R-AK), Tom Cotton (R-AR), Marco Rubio (R-FL), Ted Budd (R-NC), Kevin Cramer (R-ND), Katie Britt (R-AL), Deb Fischer (R-NE), Rick Scott (R-FL), Marsha Blackburn (R-TN), and Tommy Tuberville (R-AL) sent a letter to Defense Secretary Lloyd Austin, General Services Administrator Robin Carnahan, and NASA Administrator Bill Nelson to demand answers regarding an Environmental, Social, Governance (ESG) regulation that would negatively impact government contractors:

“The Federal Supplier Climate Risks and Resilience Rule (“Contractor Climate Rule”) would be a disaster, severely distracting your agencies from critical tasks of securing our nation from foreign adversaries and of exploring our universe. Simply put, this Administration should not use procurement policy in order to meet its radical environmental justice goals. Under the proposed rule, certain federal contractors and suppliers will be forced to publicly disclose their greenhouse gas (GHG) emissions and climate-related financial risks and set science-based emissions reduction targets,” the letter reads.

“Public procurement objectives should ensure the government can acquire high-quality goods quickly and cheaply. Instead of being distracted by bureaucratic rules and regulations, your agencies should be focused on shooting missiles and shooting stars. We do not intend to stand idly by as this Administration again attempts to further a radical agenda through procurement policy—this time directly harming our defense and space industrial bases. If your agencies continue to move forward with this Contractor Climate Rule, Congress will have no choice but to introduce a resolution of disapproval under the Congressional Review Act and consider other legislative options to prevent this radical ESG policy,” the letter continues. 

BACKGROUND:

• Specifically, the letter demands the following answers and information:
  • Did DOD conduct any analysis or any studies as to whether this Contractor Climate Rule would impact our defense industrial base’s ability to significantly expand in case of war?
  • Has DOD considered any ability to wave such onerous requirements imposed under this rule during a time of war?
  • Did NASA conduct any analysis or any studies as to whether this rule would cause further delays to the Artemis mission?
  • Has any of your agencies determined how many contractors will be unable to participate in future contracting opportunities due to this rule? If not, why has your agency not conducted such analysis?
  • Does any of your agencies continue to assert that there is legal authorization to continue with this rule given recent legislative prohibitions?