ESG contract stipulations are becoming common. Are you prepared?

By Skyler Handl, Corporate Counsel, Public Sector

How familiar are you with new Environmental, Social, and Governance (ESG) policies in the U.S. and abroad? For public sector companies, staying current with these new requirements will be an important part of remaining competitive.

ESG has become popular recently in the commercial investor market, but it actually has been a long-time staple in government contracting. For decades the U.S. government promoted public policy aligned to ESG objectives through the inclusion of contract and subcontract requirements to combat human trafficking (FAR 52.222-50), promote small and diverse business (FAR 52.219-9) and to utilize energy efficient products (FAR 52.223-15). Social and Governance objectives have historically impacted contractor responsibility and qualification under FAR Part 9, and have been weighted factors in evaluation criteria during best value competitions with specific attention for exceptional small and diverse business plans.