AgroVerde is applying to the Ecuador Carbon Zero Program (PECC) for the first time. Before calculating its footprint, Sara needs to place each emission source in the right category.
The Challenge
You’ll help Sara Ramírez through four stages of her GHG inventory:
Choose the right organizational boundary approach.
Classify emission sources into Scope 1, 2, and 3.
Validate the base year and handle structural changes.
Confirm the role of the technical standard and verification by the CAB (Conformity Assessment Body).
Each correct decision earns points and unlocks a badge. At the end, you’ll find a review of the key concepts.
SR
Sara Ramírez
Sustainability Lead · AgroVerde S.A.
A food processing company based in Quito. It has a diesel boiler, its own distribution fleet, 45 employees, and exports to three countries.
Estimated time · 9 minutes
Decision 1 of 4 · Organizational Boundary
Which approach applies to AgroVerde?
“AgroVerde manages its processing plant in Quito and operates its own fleet of four distribution trucks. The entire operation is under its direct management. It has no subsidiaries or stakes in other companies.”
— Sara Ramírez, in a meeting with her team
Choose the consolidation approach that best describes AgroVerde’s situation:
Follow-up Case · Andina Holdings Group
What if the company were different?
“Andina Holdings owns 100% of a logistics subsidiary. The subsidiary operates with its own management team, but Andina consolidates its financial results in its accounting statements. Which approach should Andina use to include the subsidiary’s emissions?”
— Comparative case
Decision 2 of 4 · Emissions Categorization
Drag each source to its corresponding scope
Sara reviewed last year’s operations. Place each of the twelve sources in its category: direct (1), indirect from purchased energy (2), or other indirect sources from the value chain, upstream or downstream (3).
Placed · 0/12Correct · 0
scope 1
Direct emissions from sources the organization owns or controls.
scope 2
Indirect emissions from purchased energy: electricity, steam, heat, or cooling the company buys.
scope 3
Other indirect emissions: value chain, travel, waste, third-party transport.
Sources to classify
After sorting, the calculation
PARTIAL EXAMPLE · 2024
With the sources now classified, Sara applies the emission factor to each activity data point. Here’s what the calculation looks like for a small part of AgroVerde’s inventory:
Scope
Source
Activity data
Emission factor
tCO₂e
1
Diesel boiler
5,000 gal/yr
10.21 kg CO₂e/gal
51.05
2
Grid electricity
25,000 kWh/yr
0.1193 kg CO₂e/kWh (SNI)
2.98
3
Supplier transport
15,000 km/yr
0.25 kg CO₂e/km (IPCC estimate)
3.75
Partial total
57.78
Scope 1 and 2 data come from the company’s own invoices (Petroecuador, CNEL). Scope 3 depends on the transport supplier sharing its kilometers — and that’s where many applications get stuck.
Decision 3 of 4 · Base Year
Does 2020 work as the base year?
“I have detailed data from 2020. It was a year when we had time to organize our records. Should we use it as the base year?”
— Sara Ramírez, application planned for 2026
Choose the answer that best reflects ISO 14064-1 and the PECC:
Follow-up Case · Structural Change
Sara proposes 2023, but…
“Looking closer, AgroVerde bought a second processing plant in mid-2023 and we integrated it in September. Should we still use 2023 as the base year?”
— Sara Ramírez, reviewing the operating calendar
Decision 4 of 4 · Technical Standard and Verification
Match each standard to its role
Sara reviews the standards the PECC references. Drag each one to the role it plays. One is a distractor: it often shows up in drafts, but it doesn’t belong in a GHG inventory.
Calculation Methodology
Defines how to measure each scope and how to account for the value chain.
Report Structure
Defines the report structure the CAB needs in order to audit it.
CAB Verification
Establishes how the CAB verifies accuracy, relevance, traceability, and fair presentation.
Doesn’t Belong in a GHG Inventory
A common distractor in drafts: it belongs to a different family of standards.
Standards to assign
GHG Protocol
ISO 14064-1
ISO 14064-3
ISO 9001
Review
Good work
Sara already has the three pillars in place: operational control approach, sources classified by scope, and a valid base year. She can move on to the calculation.
0/20
Total correct
Five Key Takeaways
01
Three consolidation approaches
Operational control (what you manage), financial control (what you consolidate), and equity share (what you own in shares). The PECC favors operational control, but holding companies with subsidiaries usually go with financial control.
02
Scope 3 runs upstream and downstream
It’s not just suppliers: it also includes the customer’s use of the product (downstream) and employees’ daily commuting. PECC’s Level 3 requires at least one significant source to be included.
03
A base year without outliers
Representative, with reliable data, free of pandemics or extended shutdowns, and, for the PECC, within the 3 years prior to the application.
04
Structural changes = recalculation
Mergers, acquisitions, or closures allow — and require — the base year to be recalculated (ISO 14064-1 §5.4). Organic growth, on the other hand, doesn’t require recalculation.
05
Standard and verification work together
The GHG Protocol structures the calculation; ISO 14064-1 structures the report; ISO 14064-3 structures the CAB’s verification. External audit is what makes the inventory credible, comparable, and certifiable — without it, later reductions don’t hold up.
