Attorney General Bonta Co-Leads Multistate Coalition Supporting Increased Transparency from Federal Contractors on Climate Change Risks

OAKLAND — California Attorney General Rob Bonta, Massachusetts Attorney General Andrea Joy Campbell, and District of Columbia Attorney General Brian Schwalb today led a coalition of 18 attorneys general in support of a proposed rule by the federal government that would require federal contractors to disclose information about their greenhouse gas emissions and the risks they face from climate change. The U.S. government employs more than 5,000 contractors, companies or individuals in industries ranging from healthcare and construction to aviation and delivery services, that produce goods or services critical to maintaining the U.S. economy. However, as climate change continues to accelerate rapidly, with worsening floods, droughts, and other extreme weather events tearing through California and beyond, these federal contractors face huge risks — to their expenses, their functioning, and to the health and safety of their workers. In the letter, the attorneys general assert that the proposed rule would provide the federal government with significant information about how its contractors and suppliers are exposed to, tracking, and managing these enormous risks.  
 
“Climate change is already costing the U.S. economy hundreds of billions of dollars each year, and that figure is only set to grow,” said Attorney General Bonta. “To prepare for a world with more intense and more frequent extreme weather events, the U.S. government needs to adapt quickly and make smart choices on transitioning its supply chain. In order to do so, we need information to shed light on the climate change-related risks faced by thousands of federal contractors. I support this proposed rule, as the data and information it brings will play a crucial role in increasing transparency, protecting workers, and safeguarding the U.S. economy.”
 
Already, Americans are witnessing the catastrophic results of climate change, whether it be wildfires and heat waves; sea-level rise and precipitation changes; or other changes. The impacts of these changes reverberate through the U.S. economy, endangering workers and impacting labor productivity and healthcare costs, threatening sources such as reservoirs, farmland, and fisheries, causing billions of dollars in property and infrastructure damage, raising expenses for businesses, and sparking supply chain disruptions that lead to shortages and inflation.   
 
In the United States in 2021, for example, there were 20 extreme weather disasters that resulted in costs of $1 billion or more, a large jump from the average of 3.1 such events per year in the 1980s. The average cost per year from climate disasters has also markedly increased, even when adjusted for inflation: the average cost per year in the 1980s was $19.5 billion; the average cost per year in the 2010s was $89.2 billion; and the cost in 2021 was $148 billion.  
 
Despite these rising impacts, for a large number of its largest contractors, the federal government has no insight into whether and what kind of climate-related risks they face because it currently does not require disclosures from its contractors. 
 
In their comment letter, the 18 attorneys general assert that this information is vital for the U.S. government to make informed decisions on how best to protect workers and create a resilient supply chain that will withstand the impacts of climate change. The information provided under the proposed rule will help it understand not only the impacts of physical destruction its contractors may face, but also the impacts of increased insurance costs, added energy expenses, and diminishing worker health, safety, and productivity. In addition, as the U.S. adapts to climate change, the government needs to assess the vulnerability of its contractors to economic, regulatory, and legal adjustments.   
 
Ultimately, this information will help the U.S. government build more efficient markets, defend the U.S. economy from the impacts of climate change, and better protect workers, consumers, and businesses. It will also benefit taxpayers through increased transparency and accountability, by giving citizens the information to have a better understanding of how the federal government is spending and managing public funds.  
 
In filing the comment letter, Attorney General Bonta is joined by the attorneys general of Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington. 
 
A copy of the comment letter can be found here.