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Does Trace use supplier specific emissions factors?

Trace can provide supplier specific emissions factors (EFs) where publicly available, but supplier emissions factors are not necessarily the most accurate.

In short: Yes — Trace can apply supplier-specific emissions factors (EFs) if a supplier’s emissions data is publicly available and appropriate for the type of purchase.

By default, we use industry or product average emissions factors. These provide a consistent, reliable way to estimate emissions when specific data isn’t available. They’re based on robust datasets and widely accepted methodologies, making them suitable for most reporting and benchmarking purposes.

Supplier-specific EFs can be used when available, but they’re not always the best choice. Their suitability depends on the context and how detailed or representative the supplier’s data is.

When are supplier-specific EFs a good fit?

They’re most appropriate when:
  • The emissions data relates directly to a specific product or service, not just the company overall.
  • The supplier offers a narrow range of goods or services with similar emissions profiles.

Example: If a company only manufactures aluminium cans, a company-wide EF may be accurate for a specific purchase.

But for diversified businesses — like Coles or Tesco, which sell everything from fresh produce to electronics — a company-wide EF may not reflect the emissions of a specific item (e.g. fruit). In such cases, a product-level industry average is likely to be more accurate.

Similarly, large tech companies like Google or Amazon span physical products, cloud computing, and advertising — all with very different emissions. Unless the EF is specific to the service or product purchased, an industry average will usually give a better estimate.

 

Emissions factor hierarchy (from most to least accurate):

  1. Life Cycle Assessment (LCA) data for the specific product or service (based on primary data)

  2. Company-specific EF, where the company provides a single or narrow range of products/services

  3. Average activity-based EF (e.g. kg CO₂e per km of freight)

  4. Average spend-based EF (e.g. kg CO₂e per $ spent)

Company-wide EFs from diversified companies often fall somewhere between spend- and activity-based EFs, depending on context.