Impact Quantification for Reporting

7.1. – Activity Based Reporting

Key Points:

Scope 3 Boundaries: Scope 3 emissions encompass indirect emissions, typically from a company’s value chain, such as purchased goods and services, transportation, and waste.
Inside vs. Outside Boundaries: Activities are categorized as either within or outside the company’s Scope 3 boundary. This distinction is crucial for emissions reporting and sustainability claims.
Outcomes of Interventions: The purpose here is to distinguish between activities that lead to emission reductions (e.g., renewable energy projects) and those that focus on carbon removals (e.g., regenerative agriculture practices like agroforestry).

Example – ONLY applicable to reporting companies

Activity	Inside Scope 3 boundary?	ReducedMT CO2e	RemovedMT CO2e
Regenerative Agriculture, Cover Cropping	Yes	N/A	10,000 MT CO2e
Regenerative Agriculture, Agroforestry Integrated Landscape Restoration (off-farm)	No	N/A	5,100 MT CO2e
Energy Solutions, Renewable Energy, Solar	Yes	3,250 MT CO2e	N/A
Energy Solutions, Energy Efficiency, LED Light Bulbs	Yes	8,540 MT CO2e	N/A

Note: for validation, you can indicate “expected” emissions reduced or removed

Inside Scope 3 Boundary: Indicates whether the activity falls within the reporting boundaries of the company. For instance, renewable energy solutions are inside the boundary because they directly reduce energy-related emissions.
Reduced or Removed Emissions:
- Reduced Emissions refer to activities like energy efficiency (e.g., installing LED bulbs), which directly reduce carbon output.
- Removed Emissions focus on carbon sequestration methods, such as regenerative agriculture, which helps to capture and store carbon.

This table is particularly helpful when validating expected emissions reductions or removals. During the reporting process, you can also indicate anticipated reductions, which will be verified during audits.

Importance in Reporting:

This section ensures that companies accurately represent their emission reductions and removals, helping them track progress toward decarbonization goals. By organizing activities into these categories, companies can also better communicate their sustainability efforts to stakeholders.

This detailed tracking of emissions is a vital part of complying with Scope 3 reporting frameworks, which emphasize transparency and accountability in reducing a company’s total carbon footprint.

KEY QUESTIONS – Impact Quantification

Have you summarized which activities result in emission reductions and which result in carbon removals? 
Have you detailed the necessary information to generate an emissions factor in the baseline and the project scenario?