U.S. Department of the Treasury
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Social
Social Achievements
- The report highlights the benefits of high-quality early childhood education and care, including improved test scores, longer school attendance, lower depression rates, better physical health, and higher earnings.
Climate Goals & Targets
Environmental Challenges
- Inadequate funding for the child care sector.
- High child care costs for families (13% of family income on average).
- Low margins and financial struggles for child care providers.
- Low wages and high turnover for child care workers.
- Liquidity constraints preventing families from investing in child care.
- Positive externalities associated with high-quality child care not fully captured by the market.
- Discrimination in labor markets affecting child care workers (mostly women and women of color).
- Low supply of child care facilities, particularly in low-income and rural areas.
- Poor maintenance of child care facilities.
- Inequities in child care access for low-income, less educated, and minority families.
Mitigation Strategies
- President's proposals to increase funding for child care and early childhood education.
- Universal preschool for all 3- and 4-year-olds.
- Subsidized care to reduce child care costs to 7% of family income.
- Expansion of the Child and Dependent Care Tax Credit.
- Investment in upgrading child care facilities and building new ones in high-need areas.
- Increased compensation and training for child care workers.
- Expanded tax credit for employers to build on-site child care facilities.
- Establishment of a national paid family and medical leave program.