How a Global Apparel Company navigated emerging standards to lead on scope 1 decarbonization
Learn how 3Degrees helped a client understand the RNG (biomethane) landscape to reduce its scope 1 emissions.
Build your decarbonization roadmap
Get your how-to guide for building decarbonization roadmaps.
Executive Summary
A Global Apparel Company set ambitious climate goals but faced significant challenges in reducing scope 1 emissions. As is true for many in the apparel industry, the company’s scope 1 footprint was relatively small compared to scopes 2 and 3. A major barrier emerged in their distribution centers (DCs), where natural gas use was both substantial and difficult to address. The DC teams were hesitant to “fix what isn’t broken,” and the lack of practical, low-disruption operational solutions made it challenging to pursue decarbonization without risking interruptions to day-to-day operations.
To address these emissions, support industrywide decarbonization, and stay ahead of evolving standards that are moving toward independent scope 1 target-setting and implementation, the company explored the use of Renewable Thermal Certificates (RTCs). However, they hesitated to move forward due to uncertainty about how RTCs may be treated in scope 1 accounting through major standards bodies, including the Science Based Targets initiative (SBTi) and the Greenhouse Gas Protocol (GHGP), which have not yet issued definitive guidance on their use. To better understand the potential role of RTCs in their decarbonization roadmap, the company turned to 3Degrees to provide technical expertise, strategic clarity, and a framework for credibly purchasing and accounting for RTCs in their scope 1 inventory.
Through this collaboration, 3Degrees delivered tailored insights into evolving SBTi guidance. They authored a technical position paper that helped the client navigate RTC market structures, establish procurement criteria, and align with emerging accounting standards. The result was a successful pilot RTC purchase that auditors accepted as a scope 1 emissions reduction
Through this engagement, the company was able to:
Gain the credibility and validation needed to make a leadership-level purchasing decision in a nascent market
Navigate the nuances of SBTi alignment and GHG accounting for RTCs
Successfully complete a pilot RTC purchase approved by auditors as a scope 1 emissions reduction
Background
The Global Apparel Company (referred to hereafter as “the client”) has long been a leader in corporate climate action. The company was among the first to set science-based targets validated by SBTi with robust operational and renewable energy goals. After making significant progress toward meeting these targets, the client sought new avenues for addressing other scope 1 emissions sources, which primarily stemmed from natural gas consumption and refrigerant leakage at their DCs, where the company had limited influence over energy infrastructure decisions. To address these harder-to-abate emissions, the client began evaluating the use of RTCs, also known as Green Gas or biomethane certificates in Europe.
Challenges
- Like many distributed, facility-based organizations, the client encountered multiple barriers in pursuing credible pathways for thermal decarbonization.
- Standards ambiguity – RTCs are not yet explicitly sanctioned by SBTi, though the new draft does support the use of RTCs for scope 1. Until GHGP finalizes its new Corporate Standard, which is expected in 2026, the alignment of market-based accounting for scope 1 remains uncertain.
- Accounting complexity – The client needed expert guidance to determine accounting boundaries, ensure consistency with GHG frameworks, and secure auditor approval for any reduction claims.
- Procurement risk – The voluntary U.S. RTC market is relatively new. The client sought rigorous due
diligence to define purchase criteria and manage reputational risk before execution.
How we helped
3Degrees partnered closely with the client to clarify the technical and strategic context for RTC
adoption. Acting as an embedded advisor, the 3Degrees team provided on-demand support related to
aligning their efforts with major standards and reporting bodies, including SBTi, RE100, CDP, and the
Greenhouse Gas Protocol. It produced a comprehensive position paper, laying a robust foundation for
informed decision-making.
Market structure and RTC functionality: An overview of how RTCs operate within market systems.
Standards body alignment: Guidance on the positioning of major standards and the use of RTCs to claim RNG use and report scope 1 emission reductions
Quality criteria for credible procurement: Detailed criteria covering feedstock options, lifecycle assessment models, tracking, and retirement procedures to ensure environmental integrity and avoid double-counting
Procurement considerations: Operational best practices, including optimal procurement
windows, volume matching protocols, and advisory notes on common carrier pipeline
arrangements.
Accounting alignment with reduction targets: Science-aligned GHG accounting guidance, including instructions for reporting biogenic CO₂, CH₄, and N₂O emissions.
Procurement execution
Leveraging this framework, 3Degrees guided the client through an initial RTC transaction. The pilot purchase sourced from 3Degrees’ Maryland food waste project, tracked and retired on the M-RETs platform, covering the natural gas usage at the client’s headquarters.
Results
With 3Degrees’ guidance and validation, the Global Apparel Company was able to turn an
emerging market uncertainty into a credible leadership action:
The 3Degrees RNG guidance provided the due diligence and assurance needed to advance the
internal recommendation
The pilot RTC purchase received auditor approval as a scope 1 reduction. These purchases not only address direct emissions but can also help incentivize facility updates
The company established a replicable model for addressing challenging scope 1 emissions through market-based innovation
3Degrees: Strategic decarbonization through collaborative climate action
With over two decades of experience in helping the planet’s leading businesses take climate action, 3Degrees is uniquely poised to guide our clients through complex decarbonization challenges. At 3Degrees, we’re helping companies turn climate ambition into climate action.
