Do you convert currencies for spend-based calculations?

Trace uses spend-based emissions factors to estimate Scope 3 emissions from your financial data. These factors are denominated in specific currencies—primarily Australian dollars (AUD) and British pounds (GBP)—depending on the region and data source (e.g. FootprintLab for Australia, DEFRA for UK).

To apply these factors accurately, we need to ensure that your spend data is converted into the correct currency before calculating emissions.

How Trace Handles Currency Conversion

When your transaction data is provided in a different currency from your home country (e.g. USD, EUR), we follow a consistent process:

1. Transaction Date Available

If the transaction includes a specific date, we:

• Convert the amount to the currency associated with the emissions factor being used

• Use the foreign exchange (FX) rate from the date of the transaction

This ensures the emissions estimate reflects the actual value of the purchase at the time it occurred.

2. Transaction Date Not Available

If the spend data doesn't include individual transaction dates, we:

• Convert the amount using the average FX rate for the 12-month measurement period

This provides a fair and consistent basis for emissions calculations over the reporting year.