Carbon Neutrality Plan (Self-Declaration)

This plan applies to Petrano Supply Inc. as a corporate entity operating from its Winnipeg, Manitoba head office. It covers Scope 1 emissions (direct emissions from sources Petrano owns or controls, expected to be minimal since Petrano operates no vehicle fleet, generation equipment or on-site combustion), Scope 2 emissions (purchased electricity and heating at the leased office), and Scope 3 emissions (all other value-chain emissions, including business travel, employee commuting, purchased goods and services and, most materially, the freight and logistics associated with the capital equipment Petrano sources and supplies).

Because Petrano is a technical supplier and value-added reseller and not a manufacturer, it does not control manufacturing-stage emissions of the OEM equipment it sells; those belong to the OEM’s own environmental accounting. This plan also does not extend to customers’ operational emissions once equipment is delivered, and it makes no claim about the carbon footprint of the equipment itself.

Petrano commits to managing its GHG footprint through the internationally recognized quantify-reduce-offset-verify hierarchy, and to pursuing a phased, honestly reported path toward operational carbon neutrality, beginning with the emissions categories where Petrano has direct control and data (Scope 1 and Scope 2) and extending over time to the material Scope 3 categories, principally outbound freight and logistics.

Effective from this plan’s date, Petrano commits: to quantify its Scope 1 and Scope 2 emissions annually, using the methodology in its GHG Reduction Plan; to reduce those emissions in absolute terms year over year before considering any offsetting; to identify and quantify residual emissions that cannot feasibly be eliminated by current means; to offset those residual emissions, once quantified, using credits that meet the quality criteria below, sourced preferentially from Canadian and, where feasible, Manitoba or Quebec-based projects; to seek independent verification of its inventory and offsetting claims before making any public declaration of achieved carbon neutrality, in line with ISO 14068-1:2023; and to report transparently, including where targets are missed or delayed, rather than adjust the target to avoid reporting a shortfall.

This commitment is proportionate to Petrano’s size. As a company of two to five people with no manufacturing footprint, Petrano’s greatest environmental leverage lies in how it manages logistics partners and sourcing decisions, not in large capital projects. This plan reflects that reality rather than describing infrastructure or programmes Petrano does not have.

Petrano has not yet completed a full, independently verified GHG inventory. Its Scope 1 emissions are expected to be negligible, since it operates no vehicles, combustion equipment or on-site processes. Its Scope 2 emissions arise from electricity and heating at its Winnipeg premises, office and depot.

Manitoba’s electricity grid is a genuine and material advantage for Petrano’s Scope 2 position: over 96 percent of the province’s generation is hydroelectric, with a grid intensity of approximately 1.3 grams of CO2e per kilowatt-hour in 2022, against a Canadian average of roughly 100 grams. This is a structural advantage, not an achievement Petrano can claim credit for; it exists because of where Petrano’s office is located, and this plan states that plainly. It does, however, make a Scope 1 plus Scope 2 operational neutrality target realistic and achievable.

Petrano’s largest and least controlled emissions sit in Scope 3, in the freight and logistics chains used to move OEM equipment from origin to destination. Addressing that category properly requires supplier and freight-partner data that Petrano does not yet systematically collect, which is why this plan treats Scope 3 logistics as a second-phase target rather than folding it into an immediate neutrality claim.

Petrano’s neutrality pathway is deliberately staged, because a boundary that includes categories Petrano cannot yet measure would not be a credible or verifiable claim.

Phase 1: Scope 1 plus Scope 2 (office energy, heating, incidental direct sources). The smallest, most controllable, most reliably measurable boundary, achievable with current resources.

Phase 2: Phase 1 plus material Scope 3 categories, beginning with outbound freight and logistics for goods supplied by Petrano, once data collection processes with logistics partners are established.

Phase 3: full Scope 1, 2 and material Scope 3 (freight, business travel, purchased goods and services), aligned with a mature carbon management programme, on a timeline dependent on data availability and company growth.

This phased approach follows the logic of ISO 14068-1:2023 and its predecessor PAS 2060: an organization can make a legitimate, bounded carbon neutrality claim for a defined scope, provided that scope is clearly stated and not misrepresented as covering more than it does. Petrano will state its claimed boundary explicitly in any future declaration and will not allow a Phase 1 claim to be read or marketed as a whole-company neutrality claim.

Petrano aligns its approach with ISO 14068-1:2023, which builds on and is progressively replacing PAS 2060:2014. Petrano is not currently certified or verified against either standard; it uses them as the reference methodology and states clearly where it has not yet completed the steps a certified claim would require.

Quantify: Scope 1 and Scope 2 emissions are calculated annually following the GHG Reduction Plan methodology, using recognized emission factors, including Manitoba Hydro’s published grid intensity. Scope 3 logistics emissions will be quantified as data collection from freight partners matures.

Reduce: reduction measures are documented in the GHG Reduction Plan and always precede offsetting. ISO 14068-1:2023 places explicit emphasis on real reduction ahead of offsetting, a stricter requirement than PAS 2060’s earlier framework, and Petrano’s sequencing is built to meet that stricter bar.

Offset, residual only: once annual reduction actions have been applied, any emissions that remain are the residual amount eligible for offsetting. Petrano will not offset emissions it has not first attempted to reduce, and will not offset a projected or estimated footprint that has not been quantified.

Verify and report: before making any public claim of achieved carbon neutrality for a defined scope, Petrano commits to having its inventory and offset retirements checked by a qualified external party. Until that verification has taken place, Petrano will describe its status as in progress toward, or aligned with, never as certified or verified.

Once Petrano has quantified a residual emissions figure it cannot further reduce, it will procure offset credits against the following criteria, applied only after the reduce step has been carried out for the relevant period.

Recognized standard: credits must be issued under Verra’s Verified Carbon Standard, Gold Standard, or an equivalent internationally recognized voluntary carbon standard. Petrano will not purchase uncertified or self-issued credits.

Additionality: the underlying project must demonstrate that its reduction or removal would not have occurred without the carbon credit revenue.

Permanence: preference is given to projects with low reversal risk or with a buffer pool or insurance mechanism against reversal, particularly for nature-based removal projects.

Independent verification and no double counting: credits must be independently verified and registered on the issuing standard’s public registry, with a serial number Petrano retains and can disclose, and must be permanently retired at the point Petrano applies them, so the same tonne of reduction cannot be claimed twice.

Geographic preference and disclosure: Petrano gives preference to Canadian projects, and to Manitoba or Quebec projects where available and cost-competitive, and will disclose the project type used in its annual reporting so customers and evaluators can assess the credits on their merits.

Petrano recognizes that the voluntary carbon market has faced credible scrutiny over inflated additionality claims in some project categories. This plan commits Petrano to reviewing the specific project types and vintages it selects against current independent scrutiny at the time of purchase, rather than relying only on a standard’s badge in isolation.

Baseline Scope 1 plus 2 inventory completed: within 12 months of this plan’s effective date.

Reduction actions implemented and tracked for one full reporting year: year 1 to year 2, establishing the reduce-before-offset record required before any offsetting is applied.

First residual emissions figure calculated and first offset purchase evaluated: year 2.

Scope 3 logistics data collection process established with key freight and logistics partners: 2027 to 2029.

Scope 1 plus 2 operational carbon neutrality target year: 2035, on a verifiable quantify-reduce-offset-verify-compliant basis. An extended claim covering material Scope 3 logistics will be evaluated from 2035 onward, subject to data availability and company growth.

These dates are planning targets, not guarantees, and this plan states that plainly. If a milestone slips, the annual review will report the slippage and the reason rather than quietly moving the date.

To remove any ambiguity: Petrano Supply Inc. is not currently carbon neutral, is not currently certified or verified against ISO 14068-1:2023 or PAS 2060, and has not yet purchased any carbon offset credits. This plan is a declaration of the method, sequencing and target dates Petrano commits to following in order to reach a genuine, verifiable neutrality position for a defined and honestly stated scope.

The principal limitations Petrano acknowledges are: a full, independently verified GHG inventory has not yet been completed, so figures in early reporting periods will be estimates refined over time; Petrano does not control emissions data from its logistics and freight partners today, which is why Scope 3 logistics is a Phase 2 target; Petrano is a two-to-five-person company without a dedicated sustainability function, and progress will move at the pace that resourcing allows; and the target dates above are planning assumptions, not contractual guarantees.

Petrano would rather publish a modest, honest and verifiable plan than an impressive-sounding one it cannot stand behind if challenged.

The Operational Director owns this plan, approves the annual inventory, reduction actions, offset purchases and public reporting, and signs off before any neutrality-related claim is communicated externally. A designated responsible person maintains the emissions data collection process and tracks milestones. All staff follow the office energy and travel practices in the GHG Reduction Plan.

Reference standards: ISO 14068-1:2023 on carbon neutrality; PAS 2060:2014 as its predecessor; the GHG Protocol Corporate Standard for scope categorization; the Verified Carbon Standard and Gold Standard programmes for offset quality; the SBTi Corporate Net-Zero Standard, referenced for the carbon neutral versus net zero distinction (Petrano does not hold an SBTi-validated target); the Canadian Net-Zero Emissions Accountability Act; and Canada’s Nationally Determined Contribution under the Paris Agreement.

This plan is reviewed annually alongside the GHG Reduction Plan, and updated whenever the annual inventory is completed, an offset purchase is made, a milestone is reached or missed, the underlying standards are revised, or Petrano’s operations change in a way that affects its emissions boundary.