Impact Commerce Standard

2. Formal Definition

Impact Commerce is a retail operating model in which pre-production demand validation is used to filter product portfolios prior to bulk manufacturing, resulting in measurable prevention of statistically predictable overproduction and quantified avoided embodied emissions, with transparent allocation of impact attribution.

3. Core Structural Requirements

An operating model qualifies as Impact Commerce only if all of the following components are present:

3.1 Pre-Scale Demand Validation

• New SKUs are exposed to a structured Test & Learn phase prior to bulk production.

• Demand signals are aggregated and measured.

• SKU performance is evaluated relative to predefined thresholds or benchmarks.

3.2 Portfolio-Level Filtering Prior to Production Commitment

• Low-performing SKUs are canceled before manufacturing.

• Production budgets and volumes are reallocated based on validated demand.

• Filtering occurs before scale, not after excess is generated.

3.3 Defined Counterfactual Baseline

• Avoided overproduction is calculated against a documented counterfactual.

• Baseline may include industry benchmark, brand historical residual rate, or hybrid model.

• Assumptions and system boundaries must be transparent.

3.4 Quantified Avoided-Emissions Methodology

• Emissions avoided are derived from production that does not occur.

• Calculation incorporates embodied carbon estimates of filtered SKUs.

• Avoided emissions are reported separately from Scope 1–3 inventories unless otherwise validated under recognized accounting standards.

• Double counting across brands, vendors, or platforms must be prevented.

3.5 Post-Decision Impact Allocation

• Carbon avoidance attribution is triggered after production decisions are finalized.

• Allocation logic must be transparent and traceable.

• Consumers must opt-in for individual-level attribution where applicable.

3.6 Transparency & Record Integrity

• Production decisions, allocation logic, and avoided-emissions calculations must be documented.

• Records must be auditable.

• If blockchain or distributed ledger systems are used, they serve as traceability infrastructure but do not replace methodological disclosure.

4. Category Exclusions

The following models do not qualify as Impact Commerce:

• On-demand manufacturing without portfolio filtering

• Carbon offset programs

• Post-production resale or recommerce platforms

• Destruction mitigation strategies

• Marketing campaigns that do not alter pre-production decisions

• Loyalty programs without measurable production filtering

• Sustainability labeling without quantified avoided emissions

Impact Commerce requires structural alteration of production allocation decisions prior to scale commitment.

5. Impact Attribution Principles

Impact Commerce operates under the following principles:

1. Avoided emissions originate from prevented production.

2. Impact claims must reflect documented portfolio filtering outcomes.

3. Brand retains ownership of avoided-emissions reporting.

4. Consumer-level attribution is participatory and informational unless formally integrated into recognized reporting frameworks.

5. Avoided emissions should not be represented as offsets.

6. Economic Integration

Impact Commerce is defined by integration into core commercial workflows, including:

• Manufacturing budget allocation

• Volume planning

• Portfolio optimization

• Risk mitigation

• Margin management

If impact accounting operates independently from production decision-making, the model does not qualify.

7. Regulatory Alignment (Non-Exclusive)

Impact Commerce may support alignment with:

• Waste prevention principles under EU regulatory frameworks

• Upstream mitigation strategies in decarbonization planning

• Disclosure requirements relating to unsold inventory risk

• Transition planning under sustainability reporting regimes

This document does not claim automatic compliance with any regulatory framework.

8. Relationship to Impact Shopping™

Impact Shopping™ is the consumer-facing implementation layer of Impact Commerce as operationalized by Sangrove.

Impact Shopping™ enables consumers to:

• Participate in Test & Learn campaigns

• Understand filtering outcomes

• View estimated avoided emissions

• Receive allocated impact records

Impact Shopping™ does not independently constitute Impact Commerce without fulfillment of Sections 3–6.

9. Governance & Versioning

This Category Definition & Qualification Standard is maintained by Sangrove.

Future revisions may refine definitions, boundaries, or qualification criteria.

Current Version: 1.0 (2026)