their factory$-$generated emissions. Company B develops a carbon sink by purchasing a certified local carbon sequestration project.

Which statement correctly describes how a company's project is related to their value chain?

Company A$\text{'}$s project is outside of the value chain because of the emissions associated with building the carbon capture technology

Company B$\text{'}$s project is inside the value chain because they are creating local carbon sinks$.$

Company A$\text{'}$s project is inside the value chain because the carbon capture is onsite and directly reduces generated emissions.

Company B$\text{'}$s project is outside the value chain because the carbon capture directly reduces Scope $1$ emissions.