Methodology

How we calculate emissions

This page exists for one reason: so your auditor, accountant, or sustainability adviser can see exactly what Green Trace AI does to your data before you put your name on a report. We’ve kept it readable rather than dressed up.

Standards we follow

Green Trace AI is built around two recognised standards used by UK reporters:

• The GHG Protocol Corporate Standard— the accounting framework that defines how to set an organisational boundary and classify emissions into Scope 1, Scope 2, and Scope 3.
• UK Government GHG Conversion Factors 2025 (published by DEFRA / DESNZ) — the official UK dataset that turns activity data (kWh, litres, tonne-kilometres) into CO₂ equivalent emissions.

Activity data → emissions

Every emission figure in a Green Trace AI report is the result of one simple equation:

activity quantity × conversion factor = tCO₂e

For example, 50,000 kWh of UK grid electricity is multiplied by the 2025 UK electricity generation factor (kgCO₂e per kWh) to produce a tCO₂e value for Scope 2. Every line item in the underlying calculation is preserved so you (or your auditor) can trace a number on the front page back to a specific activity record.

Scope classification

We follow the standard GHG Protocol categorisation:

• Scope 1— direct emissions from sources owned or controlled by the company. Typically: natural gas combustion in buildings, fuel used in company vehicles, fugitive refrigerant emissions.
• Scope 2— indirect emissions from purchased electricity, heat, steam, or cooling.
• Scope 3— other indirect emissions in the value chain, where applicable. Most UK SECR-only reporters disclose a limited subset of Scope 3 (notably business travel and employee commuting).

Scope 2 electricity

For Scope 2 electricity, Green Trace AI applies the UK grid average factor published by DEFRA / DESNZ — the location-based factor under the GHG Protocol Scope 2 Guidance. Customers who hold verified renewable energy certificates and wish to disclose a market-based figure separately should contact us; market-based reporting is on the roadmap.

Organisational boundary

The GHG Protocol Corporate Standard requires reporters to choose an organisational boundary — typically operational control or equity share. Operational control is the most common choice for UK SECR reporters. The chosen boundary is disclosed in the generated report; customers should consult their auditor or the GHG Protocol Corporate Standard when making this choice.

Reporting period

Reports align to the customer’s financial year by default, which matches the SECR requirement to disclose energy and emissions data within the directors’ report. Different reporting periods (e.g. calendar year for voluntary disclosure) are supported.

Intensity ratio

Where the customer provides a denominator (revenue, headcount, m² floor area, units of output), we calculate at least one intensity ratio — for example, tCO₂e per £m of turnover — as required by SECR.

Document extraction

Activity data is extracted from uploaded source documents (utility bills, fuel receipts, supplier invoices) using AI-assisted parsing. Every extracted field that materially affects the calculation (supplier, billing period, unit, quantity) is shown back to the user for review before it is used in calculations. Source documents remain accessible from the report for audit traceability.

Exclusions and limitations

We are transparent about what we are not. Specifically:

• We are not a registered auditor. Reports generated by Green Trace AI are designed to support, not replace, professional review and director sign-off.
• Outputs do not constitute external assurance. Where customers need ISAE 3000 or ISAE 3410 limited or reasonable assurance, this must be obtained from a qualified third-party assurance provider.
• Where activity data is incomplete or estimated, we mark it as such in the report rather than silently filling gaps.

Updates to factors

DEFRA / DESNZ publishes new GHG conversion factors annually, typically in mid-year. We apply the correct vintage of factors to the relevant reporting period and surface the factor set used on every report.

Questions

If you’re an auditor or sustainability lead reviewing the approach for a client, we’re happy to walk through it with you. Email hello@greentraceai.co.uk or read our security page for how the data itself is handled.