Greenhouse Gas (GHG) Reduction Plan

This plan covers all greenhouse gas emissions associated with Petrano’s corporate operations and its role as a value-added reseller: the Winnipeg, Manitoba head office and all activity conducted from it; all personnel engaged by Petrano, currently two to five people; emissions from purchased electricity and other energy used to operate the leased office; emissions associated with the transportation and logistics of equipment Petrano sells, from the OEM’s factory to the end customer, to the extent Petrano arranges, pays for or specifies the freight service; and business travel, employee commuting, and the purchase of office goods, IT equipment and professional services.

This plan applies to Petrano’s own corporate footprint. It does not extend to the manufacturing emissions of the original equipment manufacturers whose products Petrano resells; those belong to the OEM’s own inventory under the GHG Protocol’s organizational boundary rules, though Petrano’s procurement choices can influence them and are addressed in the reduction levers below.

Petrano commits to measuring its corporate greenhouse gas emissions using recognized international methodology, to reporting that measurement honestly, including where data is incomplete or estimated, and to reducing its emissions intensity over time through concrete operational and procurement decisions within its control.

Petrano recognizes that, as a two-to-five-person reseller with no manufacturing footprint and no vehicle fleet, its own direct emissions are small. It also recognizes that this does not exempt it from responsibility. Petrano’s purchasing decisions, freight routing choices, carrier selection and business travel patterns shape emissions across its supply chain, and Petrano commits to using that influence deliberately, in favour of lower-carbon outcomes, wherever it does not compromise the technical fit, quality or delivery requirements of the equipment it supplies.

This plan aligns Petrano’s practices with the GHG Protocol Corporate Accounting and Reporting Standard and with ISO 14064-1:2018. Petrano is not currently certified to ISO 14064-1 or any related management standard, and this plan does not claim such certification. As the Company grows, Petrano commits to evaluating formal third-party verification of its inventory where it is proportionate to the Company’s size and to buyer requirements.

Petrano consolidates its GHG inventory using the operational control approach of the GHG Protocol Corporate Standard, accounting for 100 percent of emissions from operations over which it has authority to introduce and implement operating policies. As a single legal entity operating its Winnipeg premises, with no subsidiaries or other controlled facilities, this boundary is straightforward.

Within it, emissions are classified into Scope 1 (direct emissions from owned or controlled sources), Scope 2 (purchased electricity and heating) and Scope 3 (all other value-chain emissions). Because Petrano does not own or lease vehicles, does not operate on-site combustion equipment, and holds no refrigerant-bearing equipment beyond building-supplied office HVAC, Scope 1 is expected to be negligible or zero in most years.

Petrano operates from its Winnipeg premises, comprising the office and a depot for stocked products and spare parts, with no manufacturing site. Large equipment is shipped by the OEM or a contracted logistics provider directly, or via limited transshipment, to the end customer; stocked items and spare parts ship from the Winnipeg depot. The depot’s energy use is part of Scope 2 and is included in the inventory; Petrano’s logistics-related emissions remain primarily a Scope 3 procurement and routing question, not a fleet question.

Petrano has not previously conducted a formal GHG inventory. Rather than construct a baseline retroactively from incomplete records, Petrano has established calendar year 2026 as its baseline year, using it to build data collection habits, close data gaps and produce its first complete inventory.

Scope 1 and Scope 2 are calculated using the activity-data method, multiplying purchased electricity and any fuel use by published emission factors, with the location-based method as the primary Scope 2 approach. Scope 3 is calculated category by category for the material categories, using a mix of supplier-specific data (freight invoices, carrier-reported distances and modes, travel records) and industry-average emission factors where supplier-specific data is not yet available. Petrano prioritizes obtaining primary data from its logistics partners over relying on averages, and documents, for each reporting year, which figures are measured versus estimated.

Given its size, Petrano maintains a simple internal emissions register rather than a dedicated software platform, recording energy bills, freight invoices, travel records and purchasing records mapped to the relevant scope and category. As data volume and buyer requirements grow, Petrano will evaluate proportionate carbon accounting tools or external support.

Scope 1: negligible or near zero. Petrano operates from its Winnipeg premises with no fleet and no combustion sources under its ownership or control.

Scope 2: very low. Manitoba’s electricity grid, supplied by Manitoba Hydro, is over 96 percent renewable hydroelectric generation, with a reported grid intensity of roughly 1.3 grams of CO2e per kilowatt-hour in 2022, against a Canadian national average of roughly 100 grams. A small office’s electricity consumption on this grid produces a very small Scope 2 footprint.

Scope 3, purchased goods and services: low to moderate. Standard small-office consumption, tracked for completeness.

Scope 3, upstream and downstream transportation and distribution: material. These are the two largest expected sources given Petrano’s business of reselling capital equipment, often shipped internationally by air or ocean freight. Petrano’s choices on carrier, mode and routing directly affect these categories even though Petrano does not operate the trucks, vessels or aircraft involved.

Scope 3, business travel: moderate, given Petrano’s role coordinating equipment sourced internationally and delivered to Canadian institutional buyers. Employee commuting: low, given the small headcount.

Use-phase energy consumption of sold equipment is determined by the OEM’s product design and the customer’s operating practices and is outside Petrano’s operational control. End-of-life treatment of sold products is addressed in Petrano’s packaging and end-of-life documentation rather than duplicated here.

The clear pattern is that Petrano’s own operational footprint is small by structure, not by claim, and its material footprint sits almost entirely in Scope 3, concentrated in the transportation and logistics of the capital equipment it resells. That is the honest starting point for the reduction strategy below.

Consolidate shipments wherever multiple orders or components are heading to the same destination or region.

Prefer ocean freight over air freight where delivery timelines allow, given the substantially lower emissions intensity per tonne-kilometre, reserving air freight for cases where the buyer’s schedule or the equipment’s handling requirements genuinely require it.

Include the carrier’s fuel efficiency practices, modal options and reported emissions performance in carrier selection criteria, alongside cost, reliability and handling capability.

Right-size crating and packaging specifications with the OEM to avoid oversized or overweight shipments, while meeting the equipment’s protection requirements.

Favour direct-to-site delivery over multi-leg routings that introduce additional handling and transport segments.

Introduce standard environmental questions into Petrano’s OEM and logistics partner qualification, covering the partner’s emissions reporting practices, packaging efficiency and transport mode options.

Give preference, where technically and commercially equivalent, to OEMs and logistics partners that can demonstrate lower-carbon shipping options or credible environmental programmes of their own.

Request and retain OEM environmental and compliance documentation as part of standard supplier files, so accurate information can be passed to institutional buyers who request it.

Use Petrano’s position as an intermediary to raise expectations with its supply base over time, without overstating what a small reseller can compel a large OEM to do.

Conduct supplier and buyer meetings by video conference by default, reserving in-person travel for cases where physical presence is genuinely required, such as factory acceptance testing or on-site installation support.

Maintain contracts, tender documentation, invoicing and records in digital form, avoiding routine printing, and use cloud-based collaboration rather than physical filing infrastructure.

Require a documented business justification for air travel; favour direct routings, and rail over short-haul air for domestic segments where practical and cost-reasonable; track total business travel distance and mode annually.

Source office IT hardware with attention to energy efficiency and expected service life, extend replacement cycles, enable power-saving settings, and minimize single-use consumables.

Petrano frames its targets as commitments rather than guarantees of a specific percentage, because the Company does not yet have a completed baseline inventory against which a numeric target could be responsibly set. Once the 2026 baseline year closes, Petrano will convert the directional commitments below into numeric, baseline-referenced targets and will report both in its annual review.

Near-term, 2026 to 2027: complete the first full-year GHG inventory covering Scope 1, Scope 2 and the material Scope 3 categories; implement the internal emissions register; introduce environmental screening questions into supplier qualification; formalize the low-carbon business travel policy.

Medium-term, 2028 to 2030: reduce Scope 3 freight-related emissions intensity year over year against the 2026 baseline, with the numeric target set once baseline data confirms what is achievable; achieve consolidated, primarily paperless document management; formalize carrier and OEM environmental criteria into standard RFQ and supplier evaluation templates.

Long-term, 2031 to 2035: maintain a continuous year-over-year reduction trajectory in Scope 3 intensity, consistent with the pace of national target-setting under the Canadian Net-Zero Emissions Accountability Act, and reassess whether third-party verification against ISO 14064-1, or ISO 14001 certification, has become proportionate to the Company’s size and buyer expectations.

For context, Quebec’s 2030 Plan for a Green Economy commits the province to a 37.5 percent reduction in greenhouse gas emissions below 1990 levels by 2030 and to carbon neutrality by 2050. Petrano’s institutional buyers in Quebec operate under this policy direction, and Petrano’s own commitments are designed to support the expectations that follow from it.

GHG Protocol Corporate Accounting and Reporting Standard, and the Corporate Value Chain (Scope 3) Standard, WRI and WBCSD.

ISO 14064-1:2018, quantification and reporting of greenhouse gas emissions and removals at the organization level.

Canadian Net-Zero Emissions Accountability Act, S.C. 2021, c. 22.

Quebec 2030 Plan for a Green Economy, cited as contextual policy background for Petrano’s institutional buyers in Quebec.