ESG Executive Orders

On April 21, 2023, President Biden issued an executive order on Revitalizing Our Nation’s Commitment to Environmental Justice for All (Executive Order 14096). The Executive Order emphasizes (1) the importance of building an equitable, inclusive, and sustainable economy capable of facilitating an equitable transition to a clean energy future, as well as (2) meaningful community engagement and collaboration to promote sustainable, resilient communities. The Executive Order requires that each agency submit an Environmental Justice Strategic Plan to the Chair of CEQ and that the plan be evaluated through an Environmental Justice Assessment. Pursuant to this Executive Order, the Director of the Office of Science and Technology Policy will establish an Environmental Justice Subcommittee and the President will appoint a Federal Chief Environmental Justice Officer to lead the White House Office of Environmental Justice.

On December 8, 2021, President Biden signed Executive Order 140057 to “lead by example in order to achieve a carbon pollution-free electricity sector by 2035 and net-zero emissions economy-wide by no later than 2050.” The order’s key provisions include, inter alia:

• Using the federal government’s procurement power to achieve, among other things:

o 100% carbon pollution-free electricity by 2030;

o 100% zero-emission vehicle acquisitions by 2035;

o a net zero emissions building portfolio by 2045; and

o a 65% reduction in scope 1 and 2 emissions by 2030 (compared to 2008 levels).

• Requiring the heads of all federal agencies to propose targets to meet the above goals.

• Requiring the Government Services Administration (GSA) to track GHG emissions and mitigation efforts by major U.S. government suppliers.

• Directing agencies to incorporate environmental justice considerations into their sustainability and climate adaption programs.

• Reestablishing the Office of the Federal Chief Sustainability Officer and designating Chief Sustainability Officers at each federal agency.

On May 20, 2021, President Biden issued Executive Order 14030 to, among other things, advance climate-related financial risk disclosures and help achieve the target of a net-zero emission economy by 2050. The order’s key provisions include:

• Directing the National Economic Council and National Climate Advisor (in coordination with the Director of Office of Management and Budget (OMB) and the Treasury Secretary) to develop a government-wide strategy regarding: (1) climate-related financial risks to the federal government, (2) the financing needed to achieve net-zero emissions, and (3) ways that public and private investments can meet these financing needs.

• Directing the Treasury Secretary to work with the Financial Stability Oversight Council (FSOC) members to: (1) assess climate-related financial risks to financial stability, (2) share climate-related financial risk data and information, (3) issue a report on FSOC members’ efforts to integrated consideration of climate-related financial risk in their policies and programs, and (4) consider climate-related issues or gaps in the regulation of insurers.

• Directing the Secretary of Labor to assess ways to protect retirement savings from climate-related financial risks and to consider rescinding Trump Administration rules restricting ERISA fiduciaries from considering ESG when making investment and proxy voting decisions.

• Directing various agencies to consider requiring major federal suppliers to disclose greenhouse gas (GHG) emissions and incorporating GHG costs into procurement decisions.

• Directing the Departments of Housing and Urban Development, Agriculture, and Veterans Affairs to consider integrating climate related financial risks into underwriting standards and loan terms/conditions.

• Directing OMB (among others) to incorporate climate related financial risks into the President’s budget.