Objective
In this chapter, you'll define your operational boundary by filling out a survey that will help you identify and categorize your emissions. By the end of this step, you will have a comprehensive understanding of which emissions fall under Scope 1, Scope 2, and Scope 3, and how to systematically include them in your GHG Inventory. This boundary is crucial for ensuring that your GHG Inventory captures all relevant emissions from your operations and for providing a clear pathway to emission reduction.
What is an Operational Boundary?
The operational boundary determines which specific operations and activities within your organization are included in your GHG Inventory. It categorizes emissions into Scope 1, Scope 2, and Scope 3 based on their source. Scope 1 includes direct emissions from company-owned sources, Scope 2 encompasses indirect emissions from purchased energy, and Scope 3 involves all other indirect emissions from the broader value chain, such as supply chain and waste management.
Why This Process is Important
Comprehensive Reporting: Ensures all relevant emissions are included in your GHG Inventory, providing a holistic view of your environmental impact.
Custom Fit: Tailors the boundary to your organization's specific operations and activities, allowing for more accurate emissions data.
Clear Configuration: Provides a clear framework for configuring your operational boundary, making the rest of the GHG Inventory process more straightforward and reducing ambiguity in data collection.
Survey
You can use this survey to identify your Operational Boundary. The survey will guide you step-by-step through categorizing emissions under Scope 1, Scope 2, or Scope 3. You can download the survey template to answer specific questions regarding different operations and facilities within your organization.
The survey covers each of the GHG Protocol's Scopes and Categories to ensure that you comprehensively capture all potential emission sources. Completing this survey will help you establish a solid foundation for building your GHG Inventory.
Note: Be sure to gather input from all relevant departments, such as operations, facilities management, and sustainability teams, to provide accurate and complete data for each section of the survey.
Scope 1
Direct emissions from sources owned or controlled by your organization (e.g., company vehicles, on-site fuel combustion).
Scope 1 is mandatory to report, please select the categories relevant to your business.
| Scope: Category | Description | Included in Operational Boundary? |
| Stationary Combustion | Do you have facilities that burn fuels on-site (e.g., natural gas, propane, coal, fuel oil for heating, diesel fuel for backup generators, biomass fuels)? | * Yes, include this in my Operational Boundary * No, this does not apply to my organization |
| Mobile Combustion | Do you operate vehicles or machinery that burn fuels (e.g., gasoline, diesel, propane) for transportation or onsite activities? | * Yes, include this in my Operational Boundary * No, this does not apply to my organization |
| Process Emissions | Do you have industrial processes that release greenhouse gases (e.g., cement production, chemical manufacturing, metal smelting)? | * Yes, include this in my Operational Boundary * No, this does not apply to my organization |
| Fugitive Emissions | Do you have equipment or processes that may leak or vent gases (e.g., refrigeration units, air conditioning, natural gas distribution)? | * Yes, include this in my Operational Boundary * No, this does not apply to my organization |
Scope 2
Indirect emissions from the consumption of purchased electricity, steam, heating, and cooling.
Scope 2 is mandatory to report, please select the categories relevant to your business.
| Scope: Category | Description | Included in Operational Boundary? |
| Electricity | Do you purchase electricity from a utility or other provider for use in your facilities or operations? | * Yes, include this in my Operational Boundary * No, this does not apply to my organization |
| Other Energy Use (Steam, Heat, Cooling) | Do you purchase steam, heat, or cooling energy from external providers for use in your operations? | * Yes, include this in my Operational Boundary * No, this does not apply to my organization |
Scope 3
Other indirect emissions, including those from suppliers, business travel, and employee commute.
While optional, reporting Scope 3 emissions is increasingly expected, especially for listed companies. It's common for listed companies to report at least on Business Travel and Employee Commute under Scope 3.
Reporting on additional Scope 3 categories depends on your organization's goals and the intended users of your GHG report. For example, if you aim to demonstrate leadership in sustainability or meet client expectations, more comprehensive Scope 3 reporting may be beneficial.
If any of these optional categories contribute significantly to your emission profile, you should include them in your report. For example, if you are a manufacturing company, you should report on Purchased Goods and Services because the materials you source could represent a significant portion of your total emissions.
| Scope: Category | Description | Included in Operational Boundary? |
| Business Travel | Do your employees travel for business purposes using modes of transport like flights, trains, or rental cars? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Employee Commute | Do your employees commute to work using personal vehicles, public transport, or other means? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Purchased Goods and Services | Do you purchase goods or services from suppliers (e.g., raw materials, office supplies, outsourced services) that contribute to your emissions? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Capital Goods | Do you acquire capital goods (e.g., machinery, buildings, infrastructure) that are used in your operations? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Fuel- and Energy- related Activities | Do you have upstream emissions from the production and transport of fuels and energy that you purchase (e.g., well-to-tank emissions)? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Upstream Transportation and Distribution | Do you use third-party services to transport and distribute goods or materials before they reach your facilities? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Waste Generated in Operations | Do you produce waste during your operations that requires treatment, disposal, or recycling? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Upstream Leased Assets | Do you lease assets (e.g., office space, vehicles, equipment) from others where the emissions are not included in Scope 1 or Scope 2? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Downstream Transportation and Distribution | Do you use third-party services to transport and distribute your products to customers after they leave your facilities? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Processing of Sold Products | Are your products further processed by third parties after sale (e.g., raw materials turned into finished goods)? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Use of Sold Products | Do your products generate emissions when they are used by customers (e.g., fuel consumption in vehicles, electricity usage in appliances)? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| End-of-Life Treatment of Sold Products | Do your products generate emissions when they are disposed of or recycled by customers? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Downstream Leased Assets | Do you lease assets to others (e.g., rental properties, equipment) where the emissions are not included in Scope 1 or Scope 2? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Franchises | Do you operate or franchise out business units (e.g., stores, restaurants) that generate emissions under your brand? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
| Investments | Do you have investments in other companies or projects that contribute to your overall emissions profile? | * Yes, include this in my Operational Boundary * No, this category does not contribute significantly * No, I prefer not to report this * No, this does not apply to my organization |
Next Steps
Narrow Down Scopes and Categories: Carefully review the scopes and categories identified during the survey process to determine which are most applicable to your operational boundary. This will help streamline the subsequent steps and ensure you are focusing on the most impactful emission sources.
Document Decisions: Clearly document why specific scopes and categories were included or excluded. This will help with future audits, reviews, or any stakeholder inquiries, ensuring transparency in your approach.