The proposed rules around Scope 3 emissions do provide protection to companies for liability related to their estimates as long as they were provided in “good faith”. Additionally, there are exemptions for smaller companies related to Scope 3 disclosures. Though the proposed rule will likely go through changes before a final rule is issued, one of the impacts of this proposal reaches beyond companies under the SEC’s jurisdiction with the inclusion of Scope 3 emission reporting. Most of these emissions are generated by the suppliers, distributors, and service providers to the covered company. Companies impacted by the rules will turn to their business partners to supply them with the needed data to complete and submit their required filings. This will require the business partners to ensure they have systems in place to capture their fuel and energy use data so that they can in turn provide this data to their impacted partners. Though the rule is in its initial proposal form and the comment period is open, companies both directly and indirectly impacted by the SEC’s proposal need to begin preparing themselves for these new requirements.