TRACE3 - Tracking, Reporting, and Action for Scope 3 Carbon Emissions

Motivation and Goals
The transition toward net-zero supply chains has become a strategic imperative for Dutch industry. While much attention has been given to ‘Scope 1 and 2’ emissions (direct emissions from operations and energy use), in many sectors the bulk lies in ‘Scope 3’: emissions across the value chain, from suppliers to product use. For Dutch companies, particularly in high-tech manufacturing, Scope 3 emissions are difficult to quantify and manage due to complex supply chains, long product lifecycles, and limited supply chain visibility. With the Corporate Sustainability Reporting Directive (CSRD) and other EU regulations mandating broader emissions reporting, firms must now act quickly to develop practical, scalable, and verifiable systems to track and reduce Scope 3 emissions. TRACE3 is directly aligned with TKI Dinalog’s Energy Transition and Emissions Reduction theme of the National Knowledge Agenda Logistics. It also aligns with one of the primary objectives – sustainability, as outlined in Topsector Logistics’s recent Implementation Plan 2024-2027 (Uitvoeringsprogramma 2024-2027). More specifically, to reduce “CO2, NOx and particulate matter emissions, in order to contribute to social challenges and also to secure the Dutch earning capacity of the future,” shifting the focus from carbon footprinting “to increasing chain effectiveness with an effect on CO2, particulate matter and NOx emissions.” The project addresses a critical need to bridge the gap between carbon accounting and reduction strategies and operational implementation.

Activities / Work Packages
The project is structured around four interrelated work packages (WPs):
WP1: Scope 3 Emissions Measurement – Develops a standardized and data-driven framework to measure Scope 3 emissions, integrating machine learning, network analysis, and existing accounting methods.
WP2: Target Setting – Analyzes the effectiveness of different carbon target-setting strategies and develops a decision-support framework for firms to define and implement science-based Scope 3 targets.
WP3: Strategy Implementation – Designs a portfolio management approach and develops a decision-support tool to help firms prioritize and combine carbon reduction initiatives across their supply chains.
WP4: Policy Support and Systemic Incentives – Constructs a mathematical model to simulate the effects of different policy interventions and provides actionable recommendations to align corporate and public sustainability goals.
Innovativeness
From a theoretical standpoint, the project advances current academic knowledge by investigating how firms set and act on Scope 3 targets, how different reduction strategies interact, and how policy incentives influence emissions decisions across complex supply chains. By mathematically modeling firm decision-making and behavior, new insights can be gained into the effectiveness of voluntary and regulatory interventions. Practically, TRACE3 extends existing methods by creating a tiered, data-driven measurement system, developing a decision-support tool, and piloting these solutions with firms. The project’s interdisciplinary design ensures that innovations are not only conceptually robust but also ready for implementation and scaling, supporting Dutch industry in meeting regulatory obligations and contributing to broader climate goals.

Valorization and Implementation Strategy
• Intermediate and final results will be shared through industry workshops, training modules, and academic publications.
• The decision-support framework and policy recommendations will be made available to firms, regulators, and manufacturer/logistics networks.
• A pilot phase with Dutch firms will test the frameworks in real-world settings, generating practical use cases and feedback loops.

Expected Results
• A validated Scope 3 measurement framework and a decision-support tool for setting, prioritizing, and implementing carbon reduction strategies.
• Policy recommendations supporting CSRD compliance and promoting alignment between corporate behavior and national climate goals.
• Measurable reductions in Scope 3 emissions across participating firms, with expected impacts of 10–15% emissions reduction in early adopters over 5 years.