Carbon Emissions
The U.S. Environmental Protection Agency (EPA) has implemented multiple rules to reduce methane emissions, including the Clean Air Act regulations, which aim to reduce methane emissions from oil and gas operations by 80%. Additionally, the agency is pushing for more reductions in carbon dioxide (CO2) emissions from fossil-fuel power plants, targeting compliance with the 2030 climate goals.
Risk Management
Risk management is influenced by regulations like the Supply Chain Resilience Act, which requires businesses to assess vulnerabilities and diversify suppliers, particularly for critical materials and industries. This law is designed to reduce disruptions in key sectors such as energy, technology, and healthcare.
Vendor Management
Vendor management is increasingly governed by anti-corruption laws, including the Foreign Corrupt Practices Act (FCPA). The FCPA now emphasizes due diligence processes for global supply chains, including vetting vendors and suppliers to avoid any unethical practices.
Digitization and E-Invoicing
The shift to digital procurement is driven by regulations such as Executive Order 14058, which directs federal agencies to digitize procurement operations. Additionally, the IRS e-Invoicing mandate requires companies to adopt electronic invoicing for government contracts, enhancing transparency and efficiency.
ESG and Diversity
Regulations under the Corporate Sustainability Reporting Directive (CSRD), effective from 2024, require businesses to disclose their environmental and social performance, including diversity metrics and ESG initiatives. Additionally, the Biden Administration’s Supplier Diversity Program encourages federal contractors to work with diverse suppliers.