Trace Methodology and Principles

The Trace Method

In a world where sustainability has become both a business imperative and a moral obligation, many small and medium-sized enterprises struggle to navigate the complex landscape of carbon accounting and emissions reduction. That's where Trace comes in.

Our Philosophy

At Trace, we believe that every business, regardless of size, has the power to make a meaningful impact on our planet's future. We've developed a method that makes carbon management accessible, practical, and effective for SMEs and their advisors.

Our approach is guided by ten core principles that ensure our clients not only measure their emissions accurately but also take meaningful steps toward reduction.

The 10 Principles of the Trace Method

1. Reduction is the End Goal

While measuring carbon emissions is an essential first step, the ultimate objective is reduction. The Trace Method is designed not just to quantify your impact but to guide you toward meaningful emissions cuts. Our platform identifies high-impact opportunities for reduction and helps you track progress toward your goals, ensuring that measurement leads to action.

2. Net Zero is a Team Sport

Achieving meaningful emissions reductions isn't a solo endeavor. It requires engagement across your organization and supply chain. The Trace Method helps you involve employees and suppliers in your sustainability journey, creating a collaborative approach to carbon management that yields better results and fosters a culture of environmental responsibility.

3. Built by Sustainability Experts

Our methodology isn't just software—it's the culmination of years of expertise in sustainability science and carbon accounting. Our team of specialists has deep knowledge of the GHG Protocol, carbon measurement methodologies, and emissions reduction strategies. This expertise informs every aspect of our platform, ensuring that your carbon journey is guided by sound science and best practices.

4. Focus on What You Can Control

Many businesses become overwhelmed when confronting their entire carbon footprint, particularly Scope 3 emissions. Our approach emphasizes starting with what's directly under your control—your Scope 1 and 2 emissions. By securing these wins first, you build momentum and confidence before tackling the more complex aspects of your carbon inventory.

5. No Black Boxes - We're Audit Ready

Trust requires verifiability. The Trace Method produces carbon inventories that can withstand scrutiny and external validation. Our transparent calculations and comprehensive documentation ensure that your reported emissions are defensible and audit-ready, giving you confidence in the numbers you share with stakeholders.

6. Designed for SMEs and their Advisors

Carbon accounting shouldn't be the exclusive domain of large corporations with dedicated sustainability teams. The Trace Method is specifically designed for small and medium-sized enterprises and the advisors who support them. We've streamlined the process to make it manageable for businesses with limited resources while maintaining the rigor needed for credible reporting.

7. Progress over Perfection

The perfect carbon footprint doesn't exist—especially not on your first attempt. The Trace Method embraces a progressive approach, encouraging businesses to start where they are and improve continuously. Each measurement cycle brings greater accuracy and more opportunities for reduction. What matters most is beginning the journey and committing to ongoing improvement.

8. Transparency is Key

We believe in complete transparency in how we calculate emissions. Our clients understand exactly where their numbers come from and how they're derived. This transparency builds trust and enables more informed decision-making about reduction strategies. While accuracy is essential, we recognize that visibility into the process is equally important for creating accountability and driving real change.

9. Trusted Sources

The credibility of your carbon inventory depends on the quality of your data sources. The Trace Method relies exclusively on emission factors from government agencies, academic institutions, and other recognized authorities. Our methodology adheres strictly to the GHG Protocol, the global standard for carbon accounting, ensuring that your measurements meet international best practices.

10. Lead Loudly

Your sustainability journey can inspire others. The Trace Method includes tools and guidance for communicating your carbon management efforts to stakeholders, customers, and your wider network. By sharing your progress transparently, you demonstrate leadership and encourage others to follow suit, amplifying your positive impact.

Start Your Journey with Trace

Embarking on a carbon management journey doesn't have to be daunting. With the Trace Method, you gain a structured, science-based approach that makes sustainability accessible and actionable for your business.

Our platform guides you through each step, from initial data collection to ongoing reduction efforts, with the support of our expert team. As you progress, you'll not only reduce your environmental impact but also future-proof your business against increasing regulatory requirements and changing customer expectations.

Ready to take the first step? Contact us today to learn how the Trace Method can transform your approach to sustainability.

Best Practices for Effective Carbon Accounting

Prioritize Direct Measurement for Scope 1 & 2

Financial data alone isn't sufficient for tracking emissions from your direct operations. When you rely solely on spend data for fuel and electricity consumption, you lose the ability to accurately track progress.

Consider this scenario: Your organization implements an efficiency initiative that reduces fuel usage by 15%, but if fuel prices increase by 20% during the same period, spend-based calculations would show emissions increasing—completely missing your actual reduction.

Work with your operations team to implement proper metering and tracking of actual consumption. The investment in gathering activity data pays dividends in accuracy and creates the foundation for genuine reduction strategies.

Leverage Your Existing Financial Systems for Scope 3

For most organizations, Scope 3 Purchased Goods and Services represent the largest portion of their carbon footprint. Rather than creating a parallel system, integrate with your existing accounting infrastructure.

Your general ledger contains the comprehensive record of all transactions—use this as your foundation. This approach creates a clear audit trail that connects financial and emissions accounting, making verification straightforward.

Begin with this financial foundation, then progressively incorporate supplier-specific and activity-based data as your program matures. This evolution ensures both accuracy and actionability as your carbon accounting sophistication grows.

Implement Regular Reporting Cycles

Annual carbon inventories fulfill compliance requirements but fail to drive operational change. To transform carbon management into a decision-making tool, implement more frequent reporting cycles—ideally monthly.

This cadence aligns with standard financial management practices and enables department leaders to monitor their carbon performance alongside traditional metrics. Integrate carbon data into existing operational reviews to normalize emissions as a standard business consideration.

Structure Data for Action

Aggregate emissions totals might satisfy reporting requirements but provide little operational insight. Apply the same business logic to emissions that you use for financial data—categorize by department, cost center, project, location, or other meaningful dimensions.

This structured approach connects emissions to the teams and individuals who influence them. When marketing, procurement, or operations can see their specific impact, carbon management becomes tangible rather than abstract.

Focus on Calculation Transparency

Visually appealing dashboards may impress executives, but sophisticated carbon accounting requires transparency into the underlying calculations. Prioritize platforms that provide:

• Complete control over emission factor selection and documentation
• Flexibility to adjust methodologies as better data becomes available
• Capabilities to split transactions when single line items contain multiple components
• Robust documentation features for recording assumptions and methodologies

The foundation of reliable carbon accounting isn't in the presentation layer—it's in the integrity and transparency of the calculation engine. Build trust through methodological clarity rather than visual polish.

Evolve from Estimation to Precision

Your carbon accounting maturity should progress alongside your sustainability journey. Begin with available data to establish a baseline, then continuously refine your approach:

1. Start with spend-based calculations using your financial data
2. Incorporate activity data where available (quantities, not just dollars)
3. Integrate supplier-specific emissions factors
4. Implement primary data collection for key impact areas

This evolution balances the need for comprehensive coverage with the pursuit of accuracy. Each step improves decision-making power while maintaining practical implementation.

Embrace Primary Data Whenever Possible

Industry averages serve as starting points, not final destinations. Always request emissions data directly from your suppliers—the simple act of asking signals the importance of this information and begins the journey toward more accurate accounting.

When engaging suppliers:

• Request product-level emissions factors that include upstream impacts (cradle-to-gate)
• Establish clear deadlines for data submission
• Provide support resources for suppliers new to emissions reporting
• Accept verified or third-party assured data with higher confidence

Document your methodology for incorporating supplier data, including minimum quality thresholds and your process for handling partial information. Consistent documentation creates transparency and builds credibility in your reporting.