English

3Degrees Inc's Climate Report

Download as pdf

Introduction *

Commitment and Targets *

Own Emissions *

Value Chain Emissions *

(optional)

Climate Solutions *

(optional)

Management, Strategy and Climate Risk *

(optional)

Results, Challenges and Outlook *

Version 1.1.0

Introduction *

1.1 Reporting year

*

2023

1.1.1 Reporting period

*

from 1.2023 to 12.2023

1.2 Describe your business activities

*
We are a worldwide climate solutions provider with four 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. (4) We provide outsourced program management for opt-in renewable energy programs hosted by US utilities.

1.4 Number of employees in the reporting year

*
293

1.4.1 Full-time equivalent (FTE) or headcounts

*
Headcounts

1.5 Let us know if your company is a parent company or subsidiary

*
Parent company

Commitment and Targets *

2.1 Net zero target year

*
2050

2.1.1 Base year

*
2022

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.

Own Emissions *

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

*
Yes

Energy consumption

3.2 Total energy consumption

*
94201 kwh

3.3 Renewable energy

*
94201 kwh

Scope 1 emissions

3.4 Scope 1 emissions

*
0 metric tons CO2e

Scope 2 emissions

3.5 Location based scope 2 emissions

*
23 metric tons CO2e

3.6 Market based scope 2 emissions

*
0 metric tons CO2e

3.7 Describe your plans and actions taken to reduce scope 1 & 2 emissions.

*
We have no sources of direct (scope 1) emissions. We purchase no energy directly (heating, cooling, and electricity are provided by our rental agreements), so we have few tools to directly reduce scope 2 emissions. We do incorporate energy efficiency into our office improvement projects and relevant equipment purchases, though these are reasonably rare. We purchase energy attribute certificates for 100% of our scope 2 electricity use every year and choose our supply with care.

3.8 Describe the calculation methodology and comment on the data accuracy, including any tools/methods used to calculate.

*
We use the Greenhouse Gas Protocol to calculate our emissions. We only have rental arrangements that fall under scope 2 within the USA; other office arrangements are membership-based and fall under scope 3. For scope 2, we calculate both location-based and market-based emissions. First we determine electricity use. In the relevant office spaces our electricity use is not metered, so 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 published by the US EPA. For market-based emissions, we purchase wind or solar energy attribute certificates under Green-e Certified transactions for 100% of our electricity use.

Value Chain Emissions (optional) *

Scope 3 emissions

4.1 Have you measured any of your scope 3 emissions?

*
Yes

4.1.1 Total scope 3 emissions

*
1205 metric tons CO2e

Supply chain related - upstream emissions

4.1.2 Purchased goods and services

*
643 metric tons CO2e

4.1.7 Business travel

*
459 metric tons CO2e

4.1.8 Employee commuting

*
103 metric tons CO2e

Customer related - downstream emissions

4.1.17 Do you have a plan and are taking action to reduce emissions from your value chain?

*

Yes

Our most significant emission sources arise from our Purchased Goods and Services, our Business Travel, and our Employee Commuting (notably that driven by remote-work). We have broken down our Purchased Goods and Services emissions into several high-impact categories so as to inform our emission reduction efforts. As noted above, we have committed to implementing at least one emission reduction program each year. Since our emissions are made up entirely of scope 3 emissions, these actions will be aimed at our value chain. We also note that our value chain-related emissions, purchases, and activities are small in almost any context. We do not have supplier relationships that enable us to work together toward emission reduction goals... indeed, the word "relationship" is a stretch as it relates to our interactions with suppliers. Therefore we expect to implement creative emission reduction programs that may not resemble oft-recommended actions. For example while we could encourage our suppliers to adopt low-emission targets, we do not believe this encouragement would be important or influential in their decision-making.

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

*
No

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

*
Yes

4.4 Describe the calculation methodology and comment on the data accuracy and any tools used to calculate your scope 3 emissions.

*
We use the Greenhouse Gas Protocol Corporate Value Chain Standard as the basis for our emission calculations. Our calculation methodology is a hybrid approach that uses both spend-based data and supplier-specific data for our purchased goods and services emissions. We use non-spend internal activity data where available for material categories, all as explained below. 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. Beginning with our 2022 reporting year, we refined our scope 3 category relevancy assessment, eliminating certain emission categories from future reporting efforts so as to properly focus our work. This includes Waste Generated from Operations.

Climate Solutions (optional) *

5.1 Do you classify any of your existing goods and/or services as a climate solution?

*
Yes

5.2 What percentage of your total revenue comes from sales of climate solutions?

*
100 %

5.3 Provide descriptions/names of your climate solutions:

*
Our services have a primary purpose of enabling others to reduce their emissions: (1) We acquire and sell for retirement, renewable energy and carbon commodities for corporate climate action. (2) We provide a route-to-market 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 program leaders and decision-makers regarding company climate emissions. (5) We implement opt-in renewable energy programs on behalf of energy providers, aimed primarily at residential and small commercial customers. (6) 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.

5.4 Methodology used to assess these as climate solutions, and third party which has validated the assessment, if any:

*
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." Everything we do is in service of this mission. We have not had a third party validate this assessment.

Management, Strategy and Climate Risk (optional) *

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

*
Our Board of Directors has an ESG Committee chaired by an independent Director. Our Chief Sustainability Officer sits on our Board of Directors and on this Committee. 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 ESG reporting to our leadership and Board of Directors.

6.1.1 Please describe their position and responsibility.

*
CSO: Leading our efforts to achieve net zero emissions and aiming to create implementation strategies that are tuned to the needs of small-footprint, high-ambition companies. ESG Committee of the Board: Oversees company implementation of corporate responsibility initiatives writ large.

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

*
Yes

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

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

*

Other (please specify)

6.2.2 Explain

*
As a climate services company, we assess opportunities and risks arising from the climate transition as an integral part of our business strategy. For example, an internal market intelligence team monitors both voluntary and regulatory developments around the world to identify opportunities where we could expand our offerings, as well as arenas where laws, markets, or sentiments are changing so as to put value streams at risk. This work is not an annual assessment or singular report, but rather an integrated part of our annual strategic planning process and our day-to-day business management.

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

*
Examples of risks we have identified and that we manage include: * Corporate climate action can be both driven by and constrained by stakeholder sentiment. Negative media attention toward certain climate-related actions and programs can have a chilling effect beyond the specific companies receiving the attention, and actions perceived as less-subject to such attention can experience rapid gains in interest from our customers. * Private standards bodies and government regulatory bodies can both have marked effects on corporate action preferences and timing. The timelines upon which these bodies act is not always predictable, creating risks to the pace of corporate action.

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 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 2023 we remained active participants in industry-wide efforts to accelerate progress, and engaged our employees on outside-the-workplace climate topics. As examples, in 2023 we were active members of the Clean Energy Buyers Institute’s Beyond the Megawatt task force which worked to establish and publish the Principles for Purpose-Driven Energy Procurement. We ran our annual campaign to encourage our employees to ‘level up’ to renewable energy for their home’s electricity use. We ran educational programs about home electrification and environmental justice.

Results, Challenges and Outlook *

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

*
This is our first year reporting emissions to the SME Climate Hub. However, we have been calculating and reporting our greenhouse gas emissions since 2008. In 2023, our emissions are almost identical to those we reported in 2022, despite growth in employees and revenue.

7.2 Do you face any key challenges in reducing emissions?

*

Reducing scope 3 emissions,Reducing emissions from business travel,Insufficient policies or government incentives,Limited influence over suppliers

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

*

No

-

3Degrees Inc's Climate Report

3Degrees Inc's Climate Report - 2023

Introduction *

1.1 Reporting year

*

2023

1.1.1 Reporting period

*

from 1.2023 to 12.2023

1.2 Describe your business activities

*
We are a worldwide climate solutions provider with four 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. (4) We provide outsourced program management for opt-in renewable energy programs hosted by US utilities.

1.4 Number of employees in the reporting year

*
293

1.4.1 Full-time equivalent (FTE) or headcounts

*
Headcounts

1.5 Let us know if your company is a parent company or subsidiary

*
Parent company

Commitment and Targets *

2.1 Net zero target year

*
2050

2.1.1 Base year

*
2022

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.

Own Emissions *

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

*
Yes

Energy consumption

3.2 Total energy consumption

*
94201 kwh

3.3 Renewable energy

*
94201 kwh

Scope 1 emissions

3.4 Scope 1 emissions

*
0 metric tons CO2e

Scope 2 emissions

3.5 Location based scope 2 emissions

*
23 metric tons CO2e

3.6 Market based scope 2 emissions

*
0 metric tons CO2e

3.7 Describe your plans and actions taken to reduce scope 1 & 2 emissions.

*
We have no sources of direct (scope 1) emissions. We purchase no energy directly (heating, cooling, and electricity are provided by our rental agreements), so we have few tools to directly reduce scope 2 emissions. We do incorporate energy efficiency into our office improvement projects and relevant equipment purchases, though these are reasonably rare. We purchase energy attribute certificates for 100% of our scope 2 electricity use every year and choose our supply with care.

3.8 Describe the calculation methodology and comment on the data accuracy, including any tools/methods used to calculate.

*
We use the Greenhouse Gas Protocol to calculate our emissions. We only have rental arrangements that fall under scope 2 within the USA; other office arrangements are membership-based and fall under scope 3. For scope 2, we calculate both location-based and market-based emissions. First we determine electricity use. In the relevant office spaces our electricity use is not metered, so 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 published by the US EPA. For market-based emissions, we purchase wind or solar energy attribute certificates under Green-e Certified transactions for 100% of our electricity use.

Value Chain Emissions (optional) *

Scope 3 emissions

4.1 Have you measured any of your scope 3 emissions?

*
Yes

4.1.1 Total scope 3 emissions

*
1205 metric tons CO2e

Supply chain related - upstream emissions

4.1.2 Purchased goods and services

*
643 metric tons CO2e

4.1.7 Business travel

*
459 metric tons CO2e

4.1.8 Employee commuting

*
103 metric tons CO2e

Customer related - downstream emissions

4.1.17 Do you have a plan and are taking action to reduce emissions from your value chain?

*

Yes

Our most significant emission sources arise from our Purchased Goods and Services, our Business Travel, and our Employee Commuting (notably that driven by remote-work). We have broken down our Purchased Goods and Services emissions into several high-impact categories so as to inform our emission reduction efforts. As noted above, we have committed to implementing at least one emission reduction program each year. Since our emissions are made up entirely of scope 3 emissions, these actions will be aimed at our value chain. We also note that our value chain-related emissions, purchases, and activities are small in almost any context. We do not have supplier relationships that enable us to work together toward emission reduction goals... indeed, the word "relationship" is a stretch as it relates to our interactions with suppliers. Therefore we expect to implement creative emission reduction programs that may not resemble oft-recommended actions. For example while we could encourage our suppliers to adopt low-emission targets, we do not believe this encouragement would be important or influential in their decision-making.

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

*
No

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

*
Yes

4.4 Describe the calculation methodology and comment on the data accuracy and any tools used to calculate your scope 3 emissions.

*
We use the Greenhouse Gas Protocol Corporate Value Chain Standard as the basis for our emission calculations. Our calculation methodology is a hybrid approach that uses both spend-based data and supplier-specific data for our purchased goods and services emissions. We use non-spend internal activity data where available for material categories, all as explained below. 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. Beginning with our 2022 reporting year, we refined our scope 3 category relevancy assessment, eliminating certain emission categories from future reporting efforts so as to properly focus our work. This includes Waste Generated from Operations.

Climate Solutions (optional) *

5.1 Do you classify any of your existing goods and/or services as a climate solution?

*
Yes

5.2 What percentage of your total revenue comes from sales of climate solutions?

*
100 %

5.3 Provide descriptions/names of your climate solutions:

*
Our services have a primary purpose of enabling others to reduce their emissions: (1) We acquire and sell for retirement, renewable energy and carbon commodities for corporate climate action. (2) We provide a route-to-market 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 program leaders and decision-makers regarding company climate emissions. (5) We implement opt-in renewable energy programs on behalf of energy providers, aimed primarily at residential and small commercial customers. (6) 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.

5.4 Methodology used to assess these as climate solutions, and third party which has validated the assessment, if any:

*
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." Everything we do is in service of this mission. We have not had a third party validate this assessment.

Management, Strategy and Climate Risk (optional) *

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

*
Our Board of Directors has an ESG Committee chaired by an independent Director. Our Chief Sustainability Officer sits on our Board of Directors and on this Committee. 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 ESG reporting to our leadership and Board of Directors.

6.1.1 Please describe their position and responsibility.

*
CSO: Leading our efforts to achieve net zero emissions and aiming to create implementation strategies that are tuned to the needs of small-footprint, high-ambition companies. ESG Committee of the Board: Oversees company implementation of corporate responsibility initiatives writ large.

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

*
Yes

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

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

*

Other (please specify)

6.2.2 Explain

*
As a climate services company, we assess opportunities and risks arising from the climate transition as an integral part of our business strategy. For example, an internal market intelligence team monitors both voluntary and regulatory developments around the world to identify opportunities where we could expand our offerings, as well as arenas where laws, markets, or sentiments are changing so as to put value streams at risk. This work is not an annual assessment or singular report, but rather an integrated part of our annual strategic planning process and our day-to-day business management.

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

*
Examples of risks we have identified and that we manage include: * Corporate climate action can be both driven by and constrained by stakeholder sentiment. Negative media attention toward certain climate-related actions and programs can have a chilling effect beyond the specific companies receiving the attention, and actions perceived as less-subject to such attention can experience rapid gains in interest from our customers. * Private standards bodies and government regulatory bodies can both have marked effects on corporate action preferences and timing. The timelines upon which these bodies act is not always predictable, creating risks to the pace of corporate action.

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 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 2023 we remained active participants in industry-wide efforts to accelerate progress, and engaged our employees on outside-the-workplace climate topics. As examples, in 2023 we were active members of the Clean Energy Buyers Institute’s Beyond the Megawatt task force which worked to establish and publish the Principles for Purpose-Driven Energy Procurement. We ran our annual campaign to encourage our employees to ‘level up’ to renewable energy for their home’s electricity use. We ran educational programs about home electrification and environmental justice.

Results, Challenges and Outlook *

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

*
This is our first year reporting emissions to the SME Climate Hub. However, we have been calculating and reporting our greenhouse gas emissions since 2008. In 2023, our emissions are almost identical to those we reported in 2022, despite growth in employees and revenue.

7.2 Do you face any key challenges in reducing emissions?

*

Reducing scope 3 emissions,Reducing emissions from business travel,Insufficient policies or government incentives,Limited influence over suppliers

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

*

No

-
Generating a PDF file. Please wait....

Log in

Log in

Log in

Forgot password?

Please enter your email address. You will receive a link to create a new password via email.