Loads of Knowledge: Measuring and Reducing Emissions with Trace

Welcome to the first episode of Ofload’s Loads of Knowledge video series. This series dives into emerging trends in freight and supply chain, featuring insights from industry experts and sustainability leaders.

The discussion begins by acknowledging that the recording took place on the lands of the Gadigal people of the Eora Nation and the Gumbaynggirr people.

Trace is the organisation Ofload partners with to track emissions and develop reduction plans. While Ofload’s Carbon Analytics Platform measures the emissions generated by trucks within its freight network, Trace provides a broader picture by capturing emissions from all other parts of the business.

The conversation explores:

• The three scopes of emissions
  
• Why Scope 3 is the most complex to measure
  
• Trends in carbon offsetting
  
• How businesses can take practical steps toward net zero

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What is Trace?

Trace was founded in 2020 to make climate action accessible and accountable for every business. What began as a huge spreadsheet has evolved into a powerful climate reporting and carbon accounting platform that enables companies to measure, manage, and reduce emissions in line with emerging sustainability standards.

Today, Trace helps organisations quantify their Scope 1, 2 and 3 emissions, from direct operational impacts to complex supply chain and downstream activities. This detailed emissions baseline forms the foundation for credible climate reporting and disclosure under frameworks such as the Australian Sustainability Reporting Standards (ASRS) and international equivalents.

Beyond compliance, Trace empowers businesses to turn data into action - identifying high-impact opportunities to decarbonise. From quick wins like waste reduction and energy efficiency, to long-term strategies addressing supplier engagement and product lifecycle emissions, Trace guides companies on their journey to reduce carbon, report with confidence, and move closer to net zero.

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The Three Scopes of Emissions

The Greenhouse Gas (GHG) Protocol is the global standard for corporate emissions measurement. It defines three scopes:

1. Scope 1 – Direct emissions: Fossil fuels burned directly within operations, such as fuel used in company-owned fleets.
   
2. Scope 2 – Indirect electricity emissions: Emissions from the generation of electricity consumed by the business.
   
3. Scope 3 – Everything else: Emissions from the value chain, often 70–95% of a company’s footprint. This includes employee commuting, business travel, purchased goods and services, and downstream use of products.
   

Scope 3 is the most difficult to measure due to the fragmented nature of the data. However, improvements in industry averages are making it easier for companies to build robust baselines without perfect detail.

Challenges Businesses Face

The main challenge for most companies is data collection. Larger businesses often have highly fragmented data, such as expenses spread across categories or incomplete travel records.

Technology, including AI, is helping to automate classification and analysis, making the process more manageable.

When it comes to reduction, Scope 3 is again the biggest hurdle, as companies rarely have direct control over their suppliers. Large organisations may influence suppliers by demanding climate data and net zero commitments, but SMEs often lack this leverage. Procurement, however, is a powerful tool - by choosing suppliers already committed to net zero, businesses can accelerate their own decarbonisation journey.

Strategies for Overcoming Challenges

Examples of effective strategies include:

• Switching to renewable energy: Companies can work with landlords to install solar or purchase certified green power.
  
• Engaging employees: Educating staff about how commuting, working from home, or travel choices contribute to emissions can drive meaningful micro-behaviour change.
  
• Supplier engagement: Using emissions data to select suppliers aligned with sustainability goals creates ripple effects across value chains.
  
  

Rethinking “Carbon Neutral”

Trace has moved away from using the term “carbon neutral.” While it traditionally meant measuring and offsetting all emissions, the term has been widely misused by companies relying solely on cheap offsets.

In response, regulators in the UK and EU have banned the term in consumer advertising. Trace now issues a factual certification: “Emissions Measured and Offset.” This links to a transparent page showing the data and offsets purchased, avoiding greenwashing and encouraging accountability.

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Offsets vs Direct Reductions

Many businesses, including Ofload, are shifting away from offsets and investing instead in direct reduction initiatives. Global brands such as Google and Telstra have also moved in this direction, focusing on long-term decarbonisation over neutrality claims.

Strategies vary: some businesses still offset Scopes 1 and 2 while working on supplier engagement, while others target Scope 3 with offsetting in the short term. The trend is clear: direct action is being prioritised over offsetting.

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Advice for Businesses Starting Out

For companies beginning their sustainability journey, two key pieces of advice stand out:

1. Don’t let perfection get in the way of progress. Start small, take iterative steps, and seek support from expert partners.
   
2. Be transparent. Share successes and challenges openly. Authentic communication builds trust and helps companies learn from one another.