The Environmental Protection Agency (EPA) of the U.S. has released proposed updates to its Recommendations of Specifications, Standards, and Ecolabels for Federal Purchasing. The goal of the update on recommendation is to help federal purchasers and other buyers buy sustainable products. 

Private equity or credit firms, asset managers, and impact investors can use these recommendations as a framework or a tool to the risk profile of companies in their portfolio and make investments in companies producing better sustainable and eco-friendly products for federal consumers. 

Let’s discuss the EPA update of recommendations in detail. 

About EPA’s Recommendations for Federal Purchasing

The EPA’s recommendations provide a list of reliable and effective private sector eco-labels and standards that federal agencies and other businesses can use to find and purchase sustainable services and products. The framework covers over 40 recommended environmental standards and eco-labels across 34 product and service categories and facilitates the identification of thousands of products that conserve water or energy. 

Key updates on EPA’s recommendation

The main updates on recommendations by EPA include: 

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  The proposed updates on recommendations include the addition of over 14 new standards and eco-labels across three new product categories: healthcare, laboratories, and clothing/uniforms. 

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  In the recommendations, the existing sub-category for food service ware will expand to include three additional standards to cover products that are reusable, certified compostable, and certified recyclable.

• Updates mention that seven standards and ecolabels may be removed from the existing recommendations to meet new criteria.

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  The EPA also strengthened the eligibility criteria for standards and ecolabels, which requires a competent third-party verification program, and it has a current directory of qualifying products and services. 

The updates introduced by EPA align closely with the Biden-Harris Administration’s broader sustainability goals, which involve leveraging the federal government’s purchasing power, which exceeds over $700 billion annually.

Next steps

The EPA will take open comments from the public on the proposed updates to the Recommendations for 30 days. Stakeholders, manufacturers, and other businesses can submit their feedback at Regulations.gov, which will inform the final updates.

While you’re here…

Private equity and private credit firms should carefully consider these standards in their investment strategies and risk assessments to capitalize on emerging opportunities and mitigate potential risks.

However, staying on top of news from regulatory regimes like this and assessing them accurately can be challenging. This is where Auquan comes into play. 

Auquan automates and streamlines deal sourcing, due diligence, monitoring, ESG/sustainability, and compliance workflows so teams can move faster and more efficiently. Using advanced AI, Auquan generates material and sustainability insights on any entity worldwide — public or private — fine-tuned for your team's investment and lending requirements.

Let’s explore how Auquan can help you and your team eliminate tedious and time-consuming manual data work and focus more on what you do best.