Fashion Traceability 101: Scope Certificates vs. Transaction Certificates in the Fashion Industry

Consumer trust in the fashion industry depends on accurate transparency and sustainability claims. Certifications are critical tools that help uphold ethical practices and ensure accountability throughout the apparel supply chain. But there are two important certifications that often cause confusion: Scope Certificates (SC) and Transaction Certificates (TC). This is because they serve different but complementary roles in the supply chain.  

Understanding the difference between these scope and transaction certificates helps fashion brands, suppliers, and consumers make informed decisions. This blog will clarify the distinctions between Scope Certificates and Transaction Certificates and demystify their roles in the fashion supply chain. 

A Scope Certificate (SC) serves as proof that a company or facility meets specific sustainability or ethical standards. It certifies compliance at a broader operational level—covering a company or facility—and is typically issued after passing rigorous audits by an approved certification body. Standards requiring Scope Certificates include Global Organic Textile Standard (GOTS), Fair Trade, Organic Content Standard (OCS), Responsible Wool Standard (RWS), and Recycled Claim Standard (RCS). 

The SC is valid for a defined period, typically one year, and it signifies that a certified facility can process products that meet certain standards, but it does not certify individual products. The validity of an SC can be verified by consulting the certifying body’s public database or directly contacting the certifier, ensuring that the certificate is current, and the certification claims are reliable.  

A Transaction Certificate (TC), on the other hand, ensures that a specific batch or shipment of goods meets the required certified standard. Unlike an SC, a TC applies to individual transactions, confirming the integrity of each shipment. TCs verify that each batch or shipment meets certified standards throughout the supply chain, ensuring compliance from production to delivery. 

For every shipment or batch, a new TC is issued, allowing businesses to track and maintain transparency even when supply chains involve multiple, marginal suppliers or frequent changes. TCs are necessary for every certified shipment, especially when making claims like “GOTS-certified product” or “Fair Trade Certified goods,” which means each transaction along the production chain has been verified for compliance with the relevant standards, including checks on material origin, processing, and documentation.  

There are often templates provided for relevant certifications from the certifying body, such as the GOTS Scope and Transaction Certificate templates, which help ensure consistency and reliability in documentation. These templates can typically be accessed through the certifying body’s website or by directly contacting them.

Understanding these key distinctions helps businesses effectively utilize SCs and TCs according to their specific roles in the supply chain:  

• Scope vs. Transaction: SC covers certification for the company or facility’s ability to produce goods to a specific standard, while TC applies to individual transactions or shipments. 

• Applicability: SC is often seen as a “supplier certificate,” validating that a facility can process certified materials. TC, however, is the “product certificate,” confirming that a specific shipment meets certification requirements. 
• Validity: SC has long-term validity (typically one year), whereas TC is issued for each shipment, making it a per-transaction certificate. 

Having both SC and TC is vital for supply chain transparency, traceability, and compliance with upcoming anti-greenwashing regulations. SCs establish trust by ensuring that certified facilities operate according to rigorous standards, while TCs ensure that each batch produced is traceable and meets those standards. 

Consider a brand producing GOTS-certified apparel. The facility must first have an SC to qualify as a producer. Then, for each shipment leaving the facility, a TC verifies that every batch of material complies with GOTS standards. This combination reduces the risk of greenwashing, enables transparency, and builds consumer trust in sustainability claims.  

Due to new regulations such as the EU Green Claims Directive and the UK’s Green Claims Code, having both SC and TC is now a mandatory requirement for making any sustainability claims in many regions. The EU Green Claims Directive aims to standardize how companies substantiate and communicate their environmental claims, while the UK’s Green Claims Code ensures that sustainability claims are accurate, clear, and not misleading to consumers. 

To obtain these certifications, companies need to follow specific processes that ensure compliance with standards. 

For getting a Scope Certificate, companies must follow the below steps: 

• Select a Certification Body (CB): Choose an approved CB to oversee certification. 

• Send Application & Schedule Audit: Submit an application and arrange an on-site audit. 

• On-site Audit: The CB will inspect the facility to assess compliance. 

• Follow-up: Address any gaps if necessary. 

• Certification Decision: Receive your SC once compliance is confirmed. 

For obtaining a Transaction Certificate, the process involves: 

• Initiate Request: Request a TC for a specific shipment from the CB. 

• Submit Necessary Documents: Provide relevant documentation such as invoices and shipping records. 

• CB Review: Certification body verifies compliance. 

• Receive TC: TC is issued and shared with the buyer.

Choosing between Scope Certificates (SC) and Transaction Certificates (TC) depends on your specific role within the supply chain and the nature of your business operations. If you are a manufacturer or supplier, an SC will demonstrate your compliance with sustainability standards across your facility.  

However, if you are involved in the shipping or selling of certified goods, you will need a TC for each transaction to verify that those goods meet the required standards. Understanding your position in the supply chain will help determine which certification is necessary to ensure compliance, build trust, and meet regulatory requirements.  

Keep in mind that regulations, customer location as well as the certifying body’s own requirements can also dictate which certifications are necessary before legally making any sustainability claims. For example, the EU Green Claims Directive mandates specific documentation to substantiate environmental claims, and similar requirements may apply in other regions.  

For a fashion business, understanding Scope Certificates and Transaction Certificates is the first big step in beginning your product traceability journey. Where SCs certify that a company can produce products to specific standards, TCs ensure that every product shipment complies with those standards. Together, these certifications foster transparency, support anti-greenwashing efforts, and uphold sustainability claims throughout the industry. 

For businesses looking to strengthen supply chain transparency, implementing robust certification practices is crucial. WFX’s new Traceability solution can help you seamlessly track and manage the validity of certifications of all your vendors across all the tiers of your supply chain. It also allows you to build a visual supply chain map that enables you to ensure compliance at every step.