Report results - SME Climate Hub

3Degrees Inc's Climate Report

Submitted on 2026-10-01 · Edited on 2026-10-01

1.1 End day of the reporting period*

2025-12-31

1.1.1 Reporting year*

2025

1.2 Describe your business activities*

We are a worldwide climate solutions provider with three major solution spaces. (1) We have a commercial business line that serves corporations taking voluntary action on climate change. In this business, we provide climate-related commodities, implementation services, and strategy consulting. (2) We provide market access to companies eligible to generate climate-related commodities by serving as a project development and marketing partner. (3) We invest capital in climate commodities markets via proprietary trading portfolios and active trading.

1.4 Number of employees on the end day of the reporting period*

207

1.4.1 Full-time equivalent (FTE) or headcounts*

Headcounts

1.5 Is this report being submitted on behalf of a parent company or a subsidiary? If so, please briefly explain the relationship.*

Parent company

1.5.1 Please explain the relationship*

2.1 Net zero target year*

2050

2.1.1 Base year*

2022

2.1.2 Base year value*

1406

Base year value confirmation*

I confirm that I have entered my base year value in metric tons CO2e

2.2 Near-term target*

42% of absolute scope 1+2 emission reduction from my base year by 2030

2.3 Provide any additional comments or context on your net zero and near term targets.*

3Degrees participates in the Science-based Targets Initiative’s Small and Medium Enterprise program, which specifies target language for qualifying businesses. Our baseline scope 1 + scope 2 emissions are zero, so our intention is to maintain this level. Additionally, 3Degrees commits to reduce scope 1+2+3 emissions 90% by 2050 from a 2022 base year.

2.4 To reduce emissions in line with my commitment, my company has a climate action plan and is taking action*

Yes, the plan and action include all scope 1+2+3

Energy consumption

3.2 Total energy consumption*

72315 kWh

3.3 Total renewable energy consumption*

72315 kWh

Scope 1 emissions

3.4 Scope 1 emissions*

0 metric tons CO2e

Scope 2 emissions

3.5 Location-based Scope 2 emissions*

17 metric tons CO2e

3.6 Market-based Scope 2 emissions*

0 metric tons CO2e

Scope 1 and 2 units confirmation*

I confirm that I have entered all Scope 1 and 2 emissions values in metric tons CO2e

3.7 Have you taken any actions to reduce Scope 1 and 2 emissions in the reporting period?*

Yes

3.7.1 What actions have you taken?*

Switch to renewable electricity, Energy efficient buildings and offices

3.7.2 Describe your actions taken to reduce Scope 1 and 2 emissions in the reporting period*

We have no sources of direct (scope 1) emissions. Our energy services procurement is limited. Heating, cooling, and electricity are provided by our rental agreements and are unmetered in our spaces with one exception, so we cannot measure specific actions. We do incorporate energy efficiency into our office improvement projects and relevant equipment purchases, though these are reasonably rare. We purchase energy attribute certificates via a Green-e certified transaction for 100% of our scope 2 electricity use and choose our supply with care.

3.8 Which tools or methods did you use to calculate your Scope 1 and 2 emissions?*

Own internal calculations

3.8.1 Specify any additional details*

We use the Greenhouse Gas Protocol to calculate our emissions. We had 3 offices where our rental agreements can result in scope 1 and scope 2 emissions. All other office arrangements are membership-based and are classified as scope 3. For scope 1, we assess any use of natural gas heating where we have operational control. In 2025, there were none and we have no other scope 1 emissions. For scope 2, we calculate both location-based and market-based emissions for our 3 relevant office spaces. First, we determine electricity use. In one office, we receive electricity bills and use these to determine use. In the others, we estimate electricity use based on our proportion of building space. This estimation method introduces error, but our electricity use is small, and this method is a reasonable proxy. For location-based emissions, we multiply this estimated electricity use by regional electricity emission factors; for these offices, we use US EPA e-GRID factors.

Scope 3 emissions

4.1 Have you measured any of your scope 3 emissions?*

Yes

Supply chain related - upstream emissions

4.1.1 Purchased goods and services*

1255 metric tons CO2e

4.1.2 Capital goods*

4.1.3 Fuel and energy related activities*

4.1.4 Transportation and distribution (upstream)*

4.1.5 Waste in operations*

4.1.6 Business travel*

256 metric tons CO2e

4.1.7 Employee commuting*

84 metric tons CO2e

4.1.8 Leased assets (upstream)*

Customer related - downstream emissions

4.1.9 Transportation and distribution (downstream)*

4.1.10 Processing of sold products*

4.1.11 Use of sold products*

4.1.12 End-of-life treatment of products*

4.1.13 Leased assets (downstream)*

4.1.14 Franchises*

4.1.15 Investments*

4.1.16 Total scope 3 emissions*

1595.0 metric tons CO2e

Scope 3 units confirmation*

I confirm that I have entered all Scope 3 emissions values in metric tons CO2e

4.2 Have you taken any actions to reduce scope 3 emissions in the reporting period?*

Yes

4.2.1 What actions have you taken to reduce scope 3 emissions in the reporting period?*

Climate strategy and planning, Business travel and commuting, Supply chain engagement, Other company behavioural changes

4.2.2 Provide any additional details*

Our most significant emission sources arise from our Purchased Goods and Services, our Business Travel, and our Employee Commuting (largely remote-work related). We have broken down our Purchased Goods and Services emissions into several high-impact categories so as to inform our emission reduction efforts. In 2025, we reduced our air travel emissions by more carefully planning team offsites with travel distance in mind, and by scheduling “onsite offsites” at our San Francisco office for largely-remote teams, enabling participation from headquarters staff without travel. We addressed some of our technology-related emissions by monitoring software subscriptions more closely and cancelling “seats” in a more timely way as needs changed. We also began a multi-year initiative to optimize our cloud software deployments. In 2025, this included the wholesale cancellation of one enterprise-wide subscription as the software’s functionality overlapped that of a more foundational tool embedded across our business.

4.3 Have you asked any of your suppliers to set a net zero target (either voluntarily or as a requirement)?*

4.3.1 What percentage of your suppliers have you asked?*

4.4 Have you communicated your commitment and actions to any of your customers?*

Yes

4.5 Which tools or methods did you use to calculate your scope 3 emissions?*

Own internal calculations

4.5.1 Specify additional details*

We use the Greenhouse Gas Protocol to calculate our emissions. Our calculation methodology is a hybrid approach that uses both spend-based data along with supplier-specific data, as well as company-specific internal activity data where available and material. After several years of best efforts to calculate all scope 3 categories and obtain additional detail with Purchased Goods and Services, we conducted a materiality assessment and narrowed our data focus to categories and sub-categories with non-trivial emissions. For example, we no longer attempt calculate emissions from waste generated in operations. We use supplier-specific data on categories that are highly emissive and potentially actionable, while we use spend-based data on the other material categories. These calculations are all performed with an internal footprinting tool that we developed for our consulting team’s use with clients. As with all scope 3 calculations, our emissions data results from underlying assumptions and emissions factors that may be directional at best. Still, we believe the consistency of our measurement processes and emission factors results in relevant and useful signals that point to areas where we should focus our attention.

5.1 Do any of your existing products and/or services qualify as climate solutions or enabling solutions?*

Primary purpose of enabling others to reduce their emissions.

5.2 Please confirm your solutions meet all the following safeguard requirements.*

Does not support or extend the use of fossil fuel-based technologies, Does not cause serious harm to nature (e.g. water, wildlife, or ecosystems), Avoids major pollution, such as harmful chemicals or hazardous waste, Respects human and workers’ rights (e.g. fair pay, safe working conditions)

What percentage of your total revenue came from these products and/or services last year?*

90–100%

5.4 Provide descriptions/names of your solutions:*

Our services have a primary purpose of enabling others to reduce their emissions: (1) We acquire and sell for retirement, renewable energy, carbon, and supply chain reduction commodities for corporate climate action. (2) We provide route-to-market services for companies who can receive funding for their emission reduction activities through market-based incentive programs or commodity markets. (3) We provide procurement advisory services that result in long-term renewable electricity and renewable biogas purchase contracts. (4) We provide strategic guidance and tools to climate program leaders and decision makers regarding company climate emissions. (5) We participate in climate-related commodity markets so as to ensure accurate price signals for the climate commodities, to enable buyers and sellers to achieve their climate and financial goals, and to contribute to high-integrity and scalable market-based solutions.

5.5 How did you assess whether these are climate solutions?*

Using our own internal method (please describe)

5.5.1 Has any third party validated this?*

5.5.2 Specify any additional details*

Our company's mission is to enable companies and their customers to take urgent action on climate change. We are incorporated as a Benefit Corporation with its public benefit articulated as "To have a positive effect on the Earth's environment and to reduce the negative effects of climate change on the Earth." Our work is in service of this mission. We review our mission alignment both in our work on new products and services, and on an annual basis as we review our strategy.

6.1 What governance processes do you have in place for your climate strategy? Choose as many as are applicable.*

Governance process in place, Person is responsible for climate strategy at board level, Other (please specify)

6.1 Explain*

In 2023 we began work on, and in 2024 we adopted, a Management System for Environmental, Social, and Governance affairs that defines how we manage these aspects of our business and our impacts; it includes a number of policies as well as processes for reporting to our leadership and Board of Directors. Our Chief Sustainability Officer sits on our Board of Directors and has specific reporting responsibilities to the Board as a whole regarding our progress and challenges in forwarding our climate goals. Additionally, the Board of Directors adopts policies, and approves annual scorecards, targets and budgets.

6.1.1 Please describe their position and responsibility.*

The Chief Sustainability Officer leads our efforts to achieve net zero emissions and aims to create implementation strategies that are tuned to the needs of small-footprint, high-ambition companies.

6.1.2 Is this person (or another at executive and board level) also responsible for climate risk?*

Yes

6.1.3 Please describe the governance process in place*

3Degrees’ Board of Directors empowers our CEO to ensure that company leaders have the resources, strategic clarity, and expertise to create and implement business processes, programs, and customer offerings that fulfill our mission and maintain our values. Our Board of Directors is responsible for adopting policies, approving the company’s annual scorecard and budget, and also reviews progress annually toward our ESG goals. The Chief Sustainability Officer works with business leaders to ensure plans, activities and goals support our environmental intent. She also oversees the identification of climate risks and opportunities. This is to ensure that 3Degrees management team can establish, maintain, and improve business processes, people programs, and customer offerings that fulfill our mission. Additionally, business leaders and employee teams advise on, contribute to, and are responsible for implementing the processes, programs, and offerings that make our commitments tangible.

6.2 Have you started to identify and assess your companies climate risks and opportunities?*

Yes - we have identified both climate risks and opportunities

6.2.1 Where are the climate risks you've identified?*

Both operations and value chains

6.2.1 Explain*

6.2.2 How are you managing these climate risks? Choose as many as are applicable.*

We've started to prioritise climate risks, Other (please specify)

6.2.2 Explain*

See the description of risk and opportunity management, below.

6.2.3 Provide any additional comments or context on your climate risks:*

As a climate services company, climate-related risks and opportunities arise in two ways: a) in our work, particularly to manage our portfolio of products and services offered; and b) as part of our enterprise risk management process, particularly to manage business continuity and reputational risk. For our product portfolio, an internal team monitors both voluntary and regulatory developments around the world relevant to climate change to inform our current business strategy across both opportunities and risks. Opportunities arise when laws, voluntary action standards, or business sentiments move in ways that are more generally favorable to climate action. We invest in new climate services and products as such opportunities arise. Our internal team also monitors potential risks to our current product portfolio, for example from unanticipated changes in standards or laws, or from changes in customer sentiment regarding the universe of climate products and services we offer. Our internal monitoring efforts allow us to be efficient in our strategic business and financial planning to ensure that we can provide value to our customers in line with our climate mission. In 2025, risks related to changes in political sentiment and resulting policies in the US and elsewhere created risks for some of our work. In addition, we deploy an Enterprise Risk Management process to characterize important risks to our business, including climate-related risks. Our workforce is geographically diverse and our operations are not highly concentrated so physical risks have not been a high priority. Even so, in 2025 we began the work to refresh our business continuity plans, and to pursue more advanced data protection strategies from physical risks. Finally, we recognize an enterprise-level risk tied to the politicization of climate action, and the reputational challenges this can bring to companies with climate-forward business strategies.

6.3 Have you integrated climate and/or nature into your company mission statement or shareholder agreements? If yes, describe how.*

Yes

3Degrees’ stated mission is “We make it possible for businesses and their customers to take urgent action on climate change.” Also, we are incorporated as a Public Benefit Corporation under Delaware law, which requires that we state a public benefit and “manage the company in a manner that balances the pecuniary interests of stockholders, the best interests of those materially affected by the company’s conduct, and the stated public benefit.” The law requires that we report directly to shareholders regarding our efforts to support our public benefit. The public benefit we seek to promote is: “to have a positive effect on the Earth’s environment and to reduce the negative effects of climate change on the Earth.”

6.4 Have you taken actions this year outside of your emissions to accelerate climate progress?*

Yes

In addition to our core business of providing climate products and services to accelerate action on climate change - which we grow year after year - in 2025 we remained active participants in industry-wide efforts to accelerate progress, and engaged our employees on outside-the-workplace climate topics. As examples, in 2025, we launched the Low-Carbon Fertilizer Alliance to facilitate aggregated action in upstream fertilizer manufacturing for food and beverage companies. We were active participants in the processes to update the Greenhouse Gas Protocol’s Accounting and Reporting Standard, and the Science-Based Targets Initiative’s Net Zero Standard, and we provided behind-the-scenes support to parties working with legal challenges to voluntary climate action. Finally, we impose an internal carbon tax across our business and use the proceeds to purchase and retire carbon credits each year.

7.1 Provide any additional comments or context on your annual results and progress from previous years.*

This is our third year reporting our emissions to the SME Climate Hub. However, we have been calculating and reporting our greenhouse gas emissions since 2008. In 2025, our emissions were 1.5% higher than reported for 2024, due to an increase in cloud software purchases and in other, uncategorized purchased goods and services. In all other emission categories and tracked sub-categories, our emissions were stable or down.

7.2 Do you face any key challenges in reducing emissions?*

Reducing scope 3 emissions, Reducing emissions from business travel, Balancing emission reductions with business growth, Complexities in managing supply chain emissions

Specify other challenges*

7.3 Has there been any third party validation of the data submitted in this report?*

1.1 End day of the reporting period*

2025-12-31

1.1.1 Reporting year*

2025

1.2 Describe your business activities*

1.4 Number of employees on the end day of the reporting period*

207

1.4.1 Full-time equivalent (FTE) or headcounts*

Headcounts

1.5 Is this report being submitted on behalf of a parent company or a subsidiary? If so, please briefly explain the relationship.*

Parent company

1.5.1 Please explain the relationship*

2.1 Net zero target year*

2050

2.1.1 Base year*

2022

2.1.2 Base year value*

1406

Base year value confirmation*

I confirm that I have entered my base year value in metric tons CO2e

2.2 Near-term target*

42% of absolute scope 1+2 emission reduction from my base year by 2030

2.3 Provide any additional comments or context on your net zero and near term targets.*

2.4 To reduce emissions in line with my commitment, my company has a climate action plan and is taking action*

Yes, the plan and action include all scope 1+2+3

Energy consumption

3.2 Total energy consumption*

72315 kWh

3.3 Total renewable energy consumption*

72315 kWh

Scope 1 emissions

3.4 Scope 1 emissions*

0 metric tons CO2e

Scope 2 emissions

3.5 Location-based Scope 2 emissions*

17 metric tons CO2e

3.6 Market-based Scope 2 emissions*

0 metric tons CO2e

Scope 1 and 2 units confirmation*

I confirm that I have entered all Scope 1 and 2 emissions values in metric tons CO2e

3.7 Have you taken any actions to reduce Scope 1 and 2 emissions in the reporting period?*

Yes

3.7.1 What actions have you taken?*

Switch to renewable electricity, Energy efficient buildings and offices

3.7.2 Describe your actions taken to reduce Scope 1 and 2 emissions in the reporting period*

3.8 Which tools or methods did you use to calculate your Scope 1 and 2 emissions?*

Own internal calculations

3.8.1 Specify any additional details*

Scope 3 emissions

4.1 Have you measured any of your scope 3 emissions?*

Yes

Supply chain related - upstream emissions

4.1.1 Purchased goods and services*

1255 metric tons CO2e

4.1.2 Capital goods*

4.1.3 Fuel and energy related activities*

4.1.4 Transportation and distribution (upstream)*

4.1.5 Waste in operations*

4.1.6 Business travel*

256 metric tons CO2e

4.1.7 Employee commuting*

84 metric tons CO2e

4.1.8 Leased assets (upstream)*

Customer related - downstream emissions

4.1.9 Transportation and distribution (downstream)*

4.1.10 Processing of sold products*

4.1.11 Use of sold products*

4.1.12 End-of-life treatment of products*

4.1.13 Leased assets (downstream)*

4.1.14 Franchises*

4.1.15 Investments*

4.1.16 Total scope 3 emissions*

1595.0 metric tons CO2e

Scope 3 units confirmation*

I confirm that I have entered all Scope 3 emissions values in metric tons CO2e

4.2 Have you taken any actions to reduce scope 3 emissions in the reporting period?*

Yes

4.2.1 What actions have you taken to reduce scope 3 emissions in the reporting period?*

Climate strategy and planning, Business travel and commuting, Supply chain engagement, Other company behavioural changes

4.2.2 Provide any additional details*

4.3 Have you asked any of your suppliers to set a net zero target (either voluntarily or as a requirement)?*

4.3.1 What percentage of your suppliers have you asked?*

4.4 Have you communicated your commitment and actions to any of your customers?*

Yes

4.5 Which tools or methods did you use to calculate your scope 3 emissions?*

Own internal calculations

4.5.1 Specify additional details*

5.1 Do any of your existing products and/or services qualify as climate solutions or enabling solutions?*

Primary purpose of enabling others to reduce their emissions.

5.2 Please confirm your solutions meet all the following safeguard requirements.*

What percentage of your total revenue came from these products and/or services last year?*

90–100%

5.4 Provide descriptions/names of your solutions:*

5.5 How did you assess whether these are climate solutions?*

Using our own internal method (please describe)

5.5.1 Has any third party validated this?*

5.5.2 Specify any additional details*

6.1 What governance processes do you have in place for your climate strategy? Choose as many as are applicable.*

Governance process in place, Person is responsible for climate strategy at board level, Other (please specify)

6.1 Explain*

6.1.1 Please describe their position and responsibility.*

The Chief Sustainability Officer leads our efforts to achieve net zero emissions and aims to create implementation strategies that are tuned to the needs of small-footprint, high-ambition companies.

6.1.2 Is this person (or another at executive and board level) also responsible for climate risk?*

Yes

6.1.3 Please describe the governance process in place*

6.2 Have you started to identify and assess your companies climate risks and opportunities?*

Yes - we have identified both climate risks and opportunities

6.2.1 Where are the climate risks you've identified?*

Both operations and value chains

6.2.1 Explain*

6.2.2 How are you managing these climate risks? Choose as many as are applicable.*

We've started to prioritise climate risks, Other (please specify)

6.2.2 Explain*

See the description of risk and opportunity management, below.

6.2.3 Provide any additional comments or context on your climate risks:*

6.3 Have you integrated climate and/or nature into your company mission statement or shareholder agreements? If yes, describe how.*

Yes

6.4 Have you taken actions this year outside of your emissions to accelerate climate progress?*

Yes

7.1 Provide any additional comments or context on your annual results and progress from previous years.*

7.2 Do you face any key challenges in reducing emissions?*

Reducing scope 3 emissions, Reducing emissions from business travel, Balancing emission reductions with business growth, Complexities in managing supply chain emissions

Specify other challenges*

7.3 Has there been any third party validation of the data submitted in this report?*

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