How does Trace provide assurance over its offset portfolio?
Trace is committed to transparency, financial discipline, and responsible stewardship of customer funds. While our offset portfolio is not externally audited, we operate robust internal controls and governance processes to ensure customer contributions are properly managed and used solely for purchasing and retiring carbon credits.
How customer funds are tracked and protected
When customers contribute to offset their emissions through Trace, those contributions are treated as a carbon liability. They are ringfenced from Trace’s operating funds and recorded on our balance sheet until they are used to procure and retire carbon credits.
We maintain a public tracker that logs both sides of this equation:
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Offsets and trees committed to customers, representing our liabilities
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Offsets and trees purchased and retired by Trace, representing our assets
This tracker provides visibility into how customer contributions accumulate over time and how they are subsequently converted into verified carbon credits and tree planting.
Internal assurance and financial controls
Trace operates an annual internal review process to verify offset balances and ensure customer liabilities align with credits purchased and retired. This process is conducted alongside our broader financial compliance activities, including quarterly and annual financial reporting.
As part of our governance, Trace reports its financial position, including carbon liabilities and offset balances, to our Board of Directors and investors at least annually. This ensures senior oversight and accountability for how customer funds and climate commitments are managed.
Procurement timing and integrity
Trace does not purchase credits on a fixed schedule. Instead, we procure credits when it is operationally and commercially appropriate, often in bulk, to secure better pricing and access to higher quality projects. During periods between procurements, customer funds remain reserved and recorded as a liability until credits are acquired and retired.
You can read more about how our procurement cycle works, including timing and thresholds in this article.
Our commitment to transparency
We believe trust is built through clarity and consistency. By combining ringfenced funds, clear internal controls, public reporting, and Board oversight, we aim to give customers confidence that their contributions are managed responsibly and used for their intended purpose.