EXECUTIVE SUMMARY CORPORATE INVENTORY OF GREENHOUSE …irani.com.br/uploads/mediacenter/b55bcd6c484f80b595656e676e2d… · eq, as shown in Figure 1 below. Figure 1 - Balance between

[EXECUTIVE SUMMARY CORPORATE INVENTORY OF GREENHOUSE GASES] 2014

Celulose Irani S/A 1

Corporate Inventory of Greenhouse Gases

Executive Summary

2014



Corporate Inventory of Greenhouse Gases

Celulose Irani S/A

This report provides the results of the Inventories of Anthropic Emissions by Sources and Removals by GHG Sinks

that are not controlled by the Montreal Protocol for the Cellulose Irani S/A operations in 2014. This inventory adhere

to the international standards developed by the International Organization for Standardization (ISO) and the World

Resources Institute (WRI) covering all Direct Emissions (Scope 1) and Indirect Emissions due to Energy Consumption

(Scope 2), in addition to other Indirect Emissions due to other sources (Scope 3).



Project Team:

CEO: Pericles Druck

Superintendent of Strategy and Management: Fabiano Oliveira

Manager of Management For Excellence: Leandro Alexis Farina

Public health physician and Environmental Eng: Cristian Marquezi

Coordinators in the Units:

Paper Mill Unit - MG / Santa Luzia - Renata Rubin

Packaging Unit / Indaiatuba - Glaucia Machado

Packaging Unit / Villa Maria - Lilian Feitosa

Resins and Forestry Unit RS/Balneario Pinhal - Leandro Pitol

Paper Mill SC /Vargem Bonita - Marcel Bresolin

Packaging Unit SC/Vargem Bonita - Joseane Rambo

Forestry Unit SC/Vargem Bonita - Arthur Schmidt



Celulose Irani SA produces pulp, Kraft paper, corrugated cardboard sheets and cartons,

resins and pine furniture. Currently, IRANI has the following business units that correspond to the

organizational boundaries of this GHG Emissions Inventory, as shown in Table 1 below:

Table 1 - Operational Units and subsidiaries of the company.

Operational Units Location Holding

Paper Mill/SC Vargem Bonita/SC Unit

Packaging/SC Vargem Bonita/SC Unit

Forestry/SC and IraFlor Vargem Bonita/SC Unit

Packaging/SP Indaiatuba/SP Unit

Habitasul Florestal-RS Balneario Pinhal Subsidiaries

Resins-RS Balneario Pinhal Unit

Administrative Porto Alegre/RS - Joacaba/SC - Sao Paulo/SP Unit

Papel Mill/MG Santa Luzia/MG Unit

Packing SR/SP Sao Paulo/SP Subsidiaries

This report comprises the identification and quantification of sources of GHG emissions

related to all the operating units and subsidiaries listed above, over which the organization has

financial and operational control.

A review of the organizational, operational and controlled boundaries, as well as the

sources of emission and the removal sinks, was performed by the Environmental Management

Department of the Company, as well as quantification methodologies, before the consolidation of

this Emissions Inventory for the fiscal year of 2014.

The categories of sources/sinks considered in this paper can be summarized as being in

accordance with the Corporate Inventory of Greenhouse Gases - 2014, below:

a) Direct Removals: the Companies own planted forests and forests planted in partnerships

(Pinus and Eucalyptus), where the removals of the stem was calculated - the aerial parts.

Remnants of forests planted with species that are no longer used by the company were

disregarded (Araucaria, Liquidambar, Cupressus, Cryptomeria and Cunninghamia), and the

following were also not accounted for - branches and needles, burlap and roots;

b) Direct emissions: fuel consumption, reagent consumption, waste water treatment and

solid waste treatment;



c) Indirect Emissions - Energy: Electricity consumption from the National Grid;

d) Other Indirect Emissions from other sources by the Company are highlighted as shown in

table 5.

In 2014 the organization carried out the removal of carbon dioxide from the atmosphere in

the order of 508,173 Mg CO 2 eq. In the same period the GHG emissions were 126,584 Mg CO2 eq.

Therefore, the final balance for 2012 was 381,589 Mg CO2eq. Taking into account the accumulated

results of 2006 and 2012, the organization has reached the end of 2014 with an accumulated

balance of 4,963,804 Mg CO2 eq, as shown in Figure 1 below.

Figure 1 - Balance between Emissions and Removals.

The removals in 2014 were 3.29% below in relation to the removals in 2006, due to the

handling that was developed in 2014 in the forestry areas, such as the harvesting and planting of

new areas. The Figures 2, 3 and 4 below illustrate the involvement of the operational units in the

final result of the removals of the organization, as well as the participation of the different systems

of planting and also the participation of different crop species.

-525.461-577.160

-668.534 -622.971

-537.625

-675.637-728.741

-578.917

-508.173

77.68549.311

16.866 19.173 22.570 24.936 28.058

91.458126.584

-446.910

-527.577

-650.913-602.916

-515.055

-650.701-700.683

-487.459

-381.589

-800.000

-700.000

-600.000

-500.000

-400.000

-300.000

-200.000

-100.000

0

100.000

200.000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Balance Emissions vs Removals

Total Removals Total Emissions Balance



Figure 2 - Percentage per Production Unit

Figure 3 - Percentage per productive system

75,23%

24,77%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

Forestry SC Forest RS

Production Units

61,96%

38,04%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

Own Partnerships SC

ForestrySC

Mg CO2 eq



Figure 4 - Percentage by productive species

The emissions of the organization totaled 126,584 Mg CO2eq in 2014, a result 38.41%

greater than in the base year 2013 and 62.94% greater than in the base year of 2006. All activities

such as: Fuel Consumption, Waste-water Treatment, Waste Treatment, Consumption of Electrical

Energy and the Consumption of reagents had an increase of emissions with respect to 2013, as

shown in Table 2. In Figure 5, there is a comparison between the base years of 2006, 2013 and

2014.

Table 2 - Summary by Category of Emissions (2006 to 2014)

Categories Base Year: 2006

Year Base Year: 2013

%

Change 2013 to

2014

% Change 2006 to

2014 2007 2008 2009 2010 2011 2012 2014

Waste-water treatment (domestic + industrial) 58,761 28,966 222 187 509 1,383 5,012 14,391 31,135 116.34% -47.01%

Energy consumption 1,188 1,013 2,480 1,400 2,432 1,520 695 7,279 12.172 67.23% 924.58%

Fuel Consumption 9,282 7,811 4,589 5,700 4,062 4,480 4,856 49,162 63.241 28.64% 581.33%

Outsourced Fleet 4,647 5,742 5,945 6,927 9,246 10,361 9,882 11,302 10,884 -3.70% 134.21%

Consumption of Reagents 2,289 3,275 174 199 453 857 756 2,044 2,060 0.77% -10.00%

Treatment Solid Waste (Industrial landfill) 1,518 2,504 3,456 4,760 5,799 6,282 6,830 6,917 6,947 0.44% 357.65%

Treatment Solid Waste (Industrial landfill) 0 0 0 0 69 53 28 363 145 -60.02% 0.00%

Total 77,685 49,311 16,866 19,173 22,570 24,936 28,058 91,458 126,584 38.41% 62.94%

44,01%

24,77% 27,53%

1,09% 0,95% 0,77% 0,50% 0,38%0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

Pinus tæda Pinus taeda-

Partnership

Pinuselliottii - RS

Eucalyptus -Partnership

Eucalyptus -Own

Pinus patula Pinuselliottii - SC

Pinus spp

By species



Figure 5 - Results by category

Table 3 below provides a brief discussion of the causes for the variation of emissions

presented by each type of activity.

It is worth noting also that there was a change in the Global Warming Potential (GWP)

parameters, resulting in an increase of 2.75% in the emissions of 2013 and 4.60% in 2014.

Table 3 - Analysis of the causes for the variation seen in the emissions.

Activities Causes

Waste-water Treatment

In the Resins Unit, there was a considerable increase in the COD of the output due to the increased production, which caused an increase in the emission of CO2eq. The measurements are being provided with a new effluent treatment plant and the closing of the water and waste-water circuit.

Energy consumption Average emission factor of the National Grid increased considerably due to the intense use of thermoelectric plants. The average emission factor went from 0.096 Mg CO2eq/MWh to 0.1355 CO2eq/MWh.

Fuel Consumption With respect to fuel consumption there was a significant increase compared to 2012 due to the consumption of biomass.

Outsourced Fleet There were no significant changes in the emissions.

Consumption of Reagents It was also observed that there was no significant increase in the consumption of reagents compared to 2013.

Waste treatment. Solid (Industrial Landfill)

A reduction in emissions due to the generation of waste disposed of in the industrial landfill of 11.95% was observed.

Solid Waste Treatment (Private Landfill)

A reduction in the emission of CO2eq was observed in the private landfill because there was a reduction in the renovations to the new units acquired in 2013.

For 2014 there was no recalculation. There was an increase in energy consumption and in

the emission factor. The emission factor again remained high, due to greater use of thermal power

58.761

1.1889.282

4.647 2.289 1.518 0

14.3917.279

49.162

11.302 2.044 6.917363

31.135

12.172

63.241

10.8842.060

6.947

1450

10.000

20.000

30.000

40.000

50.000

60.000

70.000

Wastewatertreatment

(domestic +industrial)

Energyconsumption

Fuel Consumption Outsourced Fleet ReagentConsumption

Solid WasteTreatment

(industrial landfills)

Solid Waste SolidWaste (private

landfill)

Emissions per Category (Mg CO2eq)Base Year: 2006

Base Year: 2013

2014



in the country, which increased from 0.096 to 0.1355 MgCO2eq/MWh, an increase of 41.08%.

With this we had an increase of approximately 67.23% considerable in the emissions. In Table 4

we can see the emissions since 2006.

Table 4 - Indirect emissions by Energy in operational and administrative units

Units Mg (CO 2 eq)

2006 2007 2008 2009 2010 2011 2012 2013 2014

Packaging - SC 108 104 214 159 335 209 73 668 981

Packaging - SP 101 96 242 132 339 183 0 0 941

Admin 4 4 7 5 9 6 18 24 27

Forestry SC 2 1 2 1 2 1 4 7 7

Paper Mills 927 792 2,008 1,099 1,739 1,104 504 3,091 6.146

Resins 4 4 8 4 7 5 15 26 32

Sawmill/SC 30 11 0 - - - - - -

MMM - - - - - 10 81 - -

Paper Mill MG 1,829 3.298

Packaging SR_SP 1,634 740

Total 1,188 1,013 2,480 1,400 2,432 1,520 695 7,279 12.172

In Table 5 below, we can see the growth of Scope 3 since the base year with the quantity of

sources in each year. Over the years, new sources have been included, and this scope is not

mandatory for its accounting. As a good management practice, we are including this and always

improving the inventory.

Table 5 - Summary of Scope 3 (2006 to 2014).

Year Scope 3 emissions Mg

CO2 eq Number of

Sources

2006 4,647 3

2007 5,741 3

2008 5,945 6

2009 6,927 13

2010 9,315 16

2011 10,414 15

2012 9,868 15

2013 11,665 15

2014 11.029 18



In Figure 6 below there is a graph showing the growth of emissions over the years relating to Scope 3, reflecting the company's commitment in the search for greater transparency in the environmental area.

Figure 6 - Evolution of Scope 3 emissions

By analyzing the emissions together, as shown in table 6 below, it can be seen that Natural

Gas has a strong impact on the overall calculation of the emissions. Then there are other

emissions that are also significant, and that the emissions from the effluent are already being

worked on to obtain its reduction. The increase is due to overloading in the treatment plant In

Figure 05, there is a comparison between the base years of 2006, 2013 and 2014.

Table 6 - Major Contributions by sources

Operational Unit Source of Emission Base Year 2006

Base Year 2013

2014 % Change

between 2013 and 2014

Paper Mill - MG Natural Gas - Paper Mill MG 0 28,604 35,063 22.58%

Resins Effluents - Resins 0.06 14,069 30,806 118.97%

Paper Mill SC Biomass boiler 11,937 12,823 13,861 8.10%

Paper Mill SC Energy - Paper Mill SC 927 3,091 6,146 98.85%

Packaging SR_SP Natural gas - Pack_SR 0 12,691 5,040 -60.29%

Due to the acquisition of Packaging SR_SP and its records, the base year will change

from 2006 to 2013.

4.6475.741 5.945

6.927

9.31510.414

9.868

11.66511.029

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Scope 3 emissionsMg CO2 eq



Figure 07 - The largest sources of GHG.

Overall, the Direct Emissions remain the most prevalent to the end result of this inventory.

The organizations Direct Emissions increased in relation to 2006 by 43.89% in 2013 and by 42.57%

in 2014 due to the new units. The Indirect Emissions by the Consumption of Energy showed

increase an in energy consumption and the emission factor due to the increased use of

thermoelectric power stations in Brazil, representing 924.58% in 2006 and 67.23% in 2013.

Whereas the Indirect Emissions from Other Sources increased by 137.33% due to the increased

forestry activity in 2006 and there was a small reduction in 2013.

Whereas the Emissions from Biogenic sources, had the components calculated that not

influence in the emissions and are shown below in Table 9. In this case Gasoline was considered

with a percentage of 25% Ethanol and Biodiesel with a percentage of 5.58% (on average). Biomass

and Liquor, were also calculated, but not recorded. In Table 7 and Figure 8 we have the emissions

records, and Table 8, shows the sources of biogenic emissions calculated:

Table 7 - Emission per Category

Categories of Emissions

Growth of the emissions - Mg CO2 eq % 2006 to 2014

% 2006 to 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014

Scope 1 71,850 42,557 8,441 10,846 10,823 13,003 17,454 72,515 103,383 43.89% 42.57%

Scope 2 1,188 1,013 2,480 1,400 2,432 1,520 695 7,279 12,172 924.58% 67.23%

Scope 3 4,647 5,741 5,945 6,927 9,315 10,414 9,910 11,665 11,029 137.33% -5.45%

Total 77,685 49,311 16,866 19,173 22,570 24,936 28,058 91,458 126,584 62.94% 38.41%

35.063

30.806

13.861

6.146 5.040

28.604

14.069 12.823

3.091

12.691

0 0,06

11.937

927 00

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

Natural Gas - Paper Mill MGEffluents - Resins Biomass boiler Energy - Paper Mill SCNatural gas - Pack_SR

2014

Base Year 2013

Base Year 2006



Figure 8 - Distribution by Category

Table 08 - Emissions of biogenic sources

Biogenic sources

Activity GHG (Mg CO 2)

Boiler - Biomass - Scope 1 804,974

Black Liquor - Scope 1 174,235

Biodiesel and Gasoline - Scope 1 102

Ethanol - Scope 1 6

Biodiesel and Gasoline - Scope 3 633

Total: 979,950

From 2008, Carbon Dioxide (CO 2) was the main greenhouse gas emitted by the activities of

the organization. The activities that mainly contributed to these emissions were Transport using

outsourced Fleet, Fuel Consumption, Energy Consumption and Consumption of Reagents.

Methane, which the main gas emitted in 2006 and 2007, was the second main gas emitted

from 2008 that came mainly from the Solid Waste Treatment activities and the Effluent

Treatment. Table 9, shows that the emissions of Nitrous Oxide accounted for a small part of the

total emissions of the organization (7.80%) and are derived from Fuel Consumption activities.

Figure 9, shows the percentage distribution per type of gas.

Table 9 - GHG Emissions per Type of Gas

71.850

1.188 4.647

103.383

12.172 11.029

0

20.000

40.000

60.000

80.000

100.000

120.000

Scope 1 Scope 2 Scope 3

2006

2014



Quantity in mg CO 2 eq

Units: Carbon Dioxide -

CO2 Methane - CH 4

Nitrous Oxide - N 2 O

Paper Mills 9,086 12,577 9,625

Pack_SC 1,863 93 3

Forestry SC 4.379 6 73

Forestry RS 1,111 26 19

Resins RS 48 30,861 59

Admin 508 0 4

Pack_SP 6,542 81 32

Pack_SR_SP 6.670 85 7

Paper_MG 42.671 100 54

TOTAL 72,878 43,830 9,875

Figure 9 - Gas Distribution.

GHG emissions from the operating units can also be seen in the figure below, which shows

the share of the units in the total emissions of the organization.

The climate efficiency of the organization is measured by the quantity of GHG required to

produce one ton of finished product. Table 10 has the Emissions of the Units and Subsidiaries

relating to Scope 1 and 2 between 2006 to 2014.

Table 10 - Emissions per Unit (2006 and 2013) - Scope 1 and 2.

57,57%

34,63%

7,80%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

Carbon dioxide Methane Nitrous oxide

Percentage of Gases



Unit 2006 2007 2008 2009 2010 2011 2012 2013 2014

Paper 64,331 36,801 7,782 8,009 8,854 9,147 9,120 12,199 30,191

Packaging SC 4,715 4,421 275 256 504 725 836 1,561 1.951

Packaging SP 3,213 2,128 2,660 3,784 3,366 3,240 3,120 4,057 5,003

Resins 228 106 40 32 360 1,225 4,845 14,119 30,950

Paper Mill MG - - - - - - - 32,931 40,784

PACKAGING SR/SP - - - - - - - 14,772 6,540

Total 72,487 43,456 10,757 12,081 13,084 14,337 17,921 79,639 115,420

For every ton of paper produced in 2014, we have to remove 2.47 tons of CO2eqfrom the

atmosphere, due to the positive balance between emissions and removals. In the productive

forest area of Santa Catarina had an index of 24.51 ton CO2 eq/ha sequestered from the

atmosphere for every hectare of forest, Figure 10.

Table 11 - Issue per ton of paper

YEAR Paper Production Removal Ton

CO2eq/Ton Paper

Mg CO2 eq

2006 172,201 446,910 2.60

2007 175,627 527,577 3.00

2008 168,766 650,913 3.86

2009 184,861 602,916 3.26

2010 196,921 515,055 2.62

2011 195,446 675,637 3.46

2012 200,038 728,741 3.64

2013 203,688 578,917 2.84

2014 206,076 508,173 2.47



Figure 10 - Removals per unit of area.

From the table above, it was possible to calculate the emission indexes of CO2eq per

quantity of finished product in each unit. The results are shown in Table 12 below.

Table 12 - Distribution of indices’ depending on the Operating Units

UNITS Base Year: 2006 Base Year: 2013 2014

PROD EMISSIONS IND IND (1 2 3) IND (1 2 ) PROD EMISSIONS IND (1 2 3) IND (1 2 )

Paper Mill SC 172,201.00 64,127.00 0.37 0.07 0.06 206,075.63 31.288 0.15 0.15

PACKAGING SC 30,998.00 4,454.00 0.14 0.03 0.03 60,831.00 1,959 0.03 0.03

PACKAGING SP 47,859.00 4,725.00 0.10 0.08 0.06 74,246.88 6,654 0,09 0.07

RESINS 5,467.00 550.00 0.10 1.79 1.79 8456.12 30,968 3.66 3.66

Paper Mill MG - - - 0.72 0.69 60,058.41 42,825 0.71 0.68

PACKAGING SR/SP - - - 0.22 0.21 60,424.72 6,763 0.11 0.11

All production units except the Resins Unit gave a satisfactory performance in the indices in

improving the climate efficiency based on the first base year 2006. There was also the inclusion of

two new units; in this case there is no comparative reference.

The reason for the poor performance of Units depends a lot on the energy consumed from

the GRID.

The Cellulose Irani SA carbon balance, showed, until 2008, a consistent reduction in the

GHG emissions. In 2010 and 2011, and in other prior years, more sources of emission were added,

mainly indirect emissions from other sources. This represents Good Corporate Practice, offering

increasing transparency with the Society in general.

18,0719,84

22,99 21,42

26,48

34,8337,25

26,3424,51

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012 2013 2014

Removal Index per hectare

Mg CO2 eq/ha



With the two new units, we have opportunities to improve production processes, such as,

reducing consumption of bunker oil, energy efficiency and exchange of natural gas for biomass

and an increase in the generation of its own electricity.

For the Paper Mills the disposal of the waste mixture of plastic and paper can be recycled

with the implementation of a project that avoids the use of the landfill. This project can be the

recycling or burning for energy generation.

Next, is table 13 with the proposal for the actions to be implemented from December 1,

2006.



Table 13 - Proposed Actions

Strategy Area Proposal: Implemented Actions:

1. Board Control 1.1 Approve a plan of responsibility that considers the projects for stimulating

energy efficiency and the increased use of renewable fuels in the company, as

well as outline a strategy for its implementation;

1.2 Establish a committee of senior managers to monitor the implementation

strategy of the plan, reviewing the implementation strategy as needed;

1.1 Creation of the GAP for the energy efficiency. In 2010, IRANI

presented a paper at a symposium on energy efficiency at the ABTCP.

Creation of HGE - Habitasul Energia Sustentável.

1.2 Accompaniment by the Sustainability Report. In 2010 the company

was a finalist in the PPI Award in the Category: Environmental Strategy

of the Year

2. Implementation

by the

Management

2.1 Promote the awareness of all employees, through training and lectures,

about the impacts of climate change on society and on the Company's activities;

2.2 Establish teams in each department to think about this and suggest energy

efficiency actions;

2.3 Couple the employees bonus system (profit sharing) to some component

related to the climatic performance of the company;

2.1 Activities undertaken in the environmental education project since

2007.

2.2 GAP of the Energy Efficiency, divulged by the ABTCP guide to energy

efficiency in 2011;

2.3 Within the SUPERA Program, the WWTP flow indicator, Loss for Fiber

in the WWTP and energy efficiency, and water consumption in

packaging, efficiency of the primary system of WWTP and final quality of

the waste water. In 2012, included the recovery of plastic from MP5.

3. Disclosure to the

Public

3.1 Engaging in some disclosure program of GHG balance: Carbon Disclosure

Project (www.cdproject.net), Brazilian GHG Protocol Program

(www.ghgprotocol.org).

3.1 The results of the Carbon Disclosure Project (CDP) were disclosed for

the 2010 and 2013 inventory on a voluntary basis;

3.1 In the GHG Protocol Brazil, the inventory results for 2009 and 2010

were disclosed. In 2015, the results for 2014 will be disclosed. The

disclosure also occurs through the Sustainability Report.

http://www.cdproject.net/



4. Quantifications

of Emissions

4.1 Monthly Update the company's GHG inventory;

4.2 Submit the GHG inventory for an independent verification by an accredited

entity in the ISO 14065 standard.

4.3 Characterize the waste being that are sent to the landfill to discount the

waste that do not generate greenhouse gases;

4.4 Account for the emissions from air travel by employees and third party

contractors who provide services to IRANI.

4.1 The data is not updated every month, because some sources are

updated annually;

4.2 We submit the report for external audit and verification by BRTUV

(2006 to 2011) and WayCarbon according to the ISO 14064 (2006)

standard in 2012, 2013 and 2014 with the Instituto Totum;

4.3 Action carried out in 2012;

4.4 Was effected from 2010, accounting also for some service providers

and improvements in 2011.

5. Strategic

Planning and

Implementation

5.1 Incorporate climate management into Strategic Planning, setting climatic

goals and targets for the reduction of GHG emissions;

5.2 Evaluate the investments in capacity expansion of renewable energy

generation, or buying electricity on the open market, directly from producers of

electricity using renewable sources (hydro, biomass or wind energy).

5.1 The IRANI strategic map contemplates in the perspectives the

adoption of appropriate and innovative practices and as indicators of

these objectives we have CO2eq emissions. Action plans and goals are

set for reducing emissions. For example: To reduce the emissions from

the industrial landfill, that is in operation recycling plastic from MP5, and

to reduce the company´s and third party and the Companies own

emissions (diesel) we have the Despoluir (Clean Up) project.

5.2 In accordance with the strategic planning, the Company, in

December 2011, purchased electricity on the free market. In 2012 the

purchase of energy began to be prioritized in an encouraged way.

Documents

EXECUTIVE SUMMARY CORPORATE INVENTORY OF GREENHOUSE …irani.com.br/uploads/mediacenter/b55bcd6c484f80b595656e676e2d… · eq, as shown in Figure 1 below. Figure 1 - Balance between