Emissions Inventory

Covers direct GHG emissions originating within the organizational boundaries and from sources owned or controlled by the reporting company. These emissions are subdivided into:

I .
Stationary combustion for the generation of electricity, steam, heat, or energy using equipment at a fixed location;

II .
Mobile combustion for general transportation (company’s operational fleet), including off-road equipment such as those used in construction, agriculture, and forestry;

III .
Fugitive emissions resulting from the use of refrigeration and air-conditioning (RAC) equipment, as well as fire extinguishers;

IV .
Industrial processes encompassing all non-combustion GHG emissions arising from physical or chemical processes, such as CO₂ emissions from calcination in cement production, CO₂ emissions from catalytic cracking in petrochemical processing, and PFC emissions from aluminum smelting, among others; 
 

V .
Agricultural activities, including emissions produced from soil drainage and preparation (CO₂, CH₄, N₂O), application of synthetic fertilizers (N₂O), crop residues left on the soil (CO₂, CH₄, N₂O), application of urea and lime to soil (CO₂), enteric fermentation (CH₄), rice cultivation (CH₄), burning of crop residues left on the land (CO₂, CH₄, N₂O), forest management (CO₂), oxidation of horticultural substrate media (CO₂), among others;
 

VI .
Land use change, where emissions occur due to conversions between different land use categories, potentially generating CO₂ flows (emissions and removals). This category includes, for example, emissions associated with deforestation for industrial development, as defined by the Brazilian GHG Protocol Program;
 

VII.
Solid waste, referring only to waste sent to landfills or treated by composting. This category includes solid waste that is owned or controlled by the organization;
 

VIII.
Wastewater, referring to liquid effluents treated through anaerobic processes. Under Scope 1, this category includes effluent treatment operated by or under the ownership of the reporting organization.** 

*Wastewater refers to liquid effluents treated through anaerobic processes. Under Scope 1, this category includes effluent treatment operated by or under the ownership of the reporting organization. 
**In most companies (e.g., those operating within commercial buildings and paying water bills to third-party providers), wastewater treatment is usually classified under another scope.  

Scope 3 is the category that includes emissions that are a consequence of the company’s activities but occur in sources that are not owned or controlled by it, such as commercial air travel, private vehicle use, and all other indirect emissions. The categories in Scope 3 are similar to those in Scope 1 but differ in that the activities are carried out or managed by third parties and include employee commuting and transport categories. 

Specifically, Scope 3 encompasses the following:

• Upstream transportation and distribution, referring to road, rail, waterway, and air modes for transporting purchased or acquired goods and services;
• Solid waste treatment (by third parties) generated during the organization’s operations, which is sent to landfills or treated via composting;
• Liquid effluents generated during the organization's operations in the reporting year that are treated by third parties, regardless of whether within the operational boundaries or not;
• Business travel undertaken by employees using vehicles, airplanes, trains, or buses provided by third-party companies;
• Employee commuting from home to work, using either private vehicles or public transport.

Technically, Scope 3 emissions are optional to report due to the complexity in verifying data sources. However, it tends to be the scope with the highest volume of emissions. Therefore, it is strongly recommended to include Scope 3 in the reporting company's carbon footprint. Measuring and reporting Scope 3 emissions qualifies the company for "Gold" status under the Brazilian GHG Protocol Program. Currently, this status is held by 415 companies in the program, including Aché, Azul, Avon, BNDES, Globo, Grupo Pão de Açúcar, Natura, and Vivo. 

Extraction, production, and transportation of fuels consumed in energy generation (whether purchased or self-generated by the company preparing the inventory)

Acquisition of energy that is resold to end consumers (reported by the energy company)

Energy losses that occur in the transmission and distribution (T&D) system (reported by the final consumer)

Leased assets, franchises, and outsourced activities – emissions resulting from such contractual arrangements are classified as Scope 3 only if the chosen consolidation approach (equity share or operational control) does not apply to them.