Firstly, kudos on partnering with Carbon Neutral suppliers. This is a great step and will certainly add value to your sustainability initiatives!
In such a case, while you map the suppliers to different categories under the ‘Map your expense data’ step, you can tick the checkbox available on the right hand side of each of the suppliers which asks ‘Is offset?’. By doing that, we will be able to calculate your Net Emissions.
If you are looking to offset your own emissions, you can purchase offsets through Trace:
A few things to check before ticking 'Is offset?'
Marking something as offset reduces your reported net emissions, so it's worth pausing to verify the claim rather than taking it at face value. Before you tick the box, check the following:
- Is it a verified offset, not just a claim? A supplier saying "we're carbon neutral" isn't the same as having a documented, third-party-verified offset purchase (e.g. through a recognized registry or standard such as Verra, Gold Standard, or an equivalent). Ask for the certificate or documentation, not just the marketing claim.
- Does the offset actually correspond to the emissions you're measuring? Suppliers sometimes purchase offsets for one part of their business (e.g. their corporate HQ energy use) that has nothing to do with the goods or services they're supplying to you. If the offset doesn't cover the specific activity or scope you're accounting for, it shouldn't be applied here.
- Is the offset current? Offset claims can be outdated - a supplier might point to a purchase made a year or two ago and treat it as an ongoing status. Offsets are typically tied to a specific vintage year and a one-time retirement, so check that the offset period actually aligns with the reporting period you're mapping. An offset from 2023 doesn't cover your 2025 emissions.
Examples of verified offsets
- Qantas offers a Voluntary Carbon Program where customers can pay to offset their flights. This is done on a per-flight basis, so purchasing offsets on a single journey does not mean you offset all flight emissions. Qantas is able to provide you a report through your account which specifies the total emissions that have been offset through the program. If you offset all flights with Qantas then you can check the 'Is offset?' box on Trace, otherwise you are required to enter flight-level breakdown in the 'Business Travel' section.
- Climate Active is an Australian government body which allows companies to certify themselves as Carbon Neutral. Companies can either certify as an organisation, or can cretify Carbn Neutral products and services. If you wish to claim your Climate Active-registered supplier as Carbon Neutral, you will need to confirm whether the product or service you purchased is covered by their certification. You will also need to ensure that the year the product / service was purcahsed by your company aligns with their certificate to make the claim.
⚠️Climate Active is due to be discontinued from 30 June 2027 so companies will no longer be able to certify as Carbon Neutral through the program after this data. See more from Climate Active here.