2.4 - Operational boundary
Which emission sources shall be included in the operational boundary?
The total GHG emissions generated by the organisation's establishments, equipment and installations (i.e: from the organisational boundary), constitute the operational boundary of the assessment.
Defining the operational boundary is done in 3 steps:
Identification of emission sources;
Allocation of those emission sources according to the emission category nomenclature of the Bilan Carbone®;
Identification of indirect emissions and delimitation of the operational boundary
1️⃣ Identification of emission sources
The organization shall identify the emission sources that will constitute its Bilan Carbone®.
The identification of emission sources is iterative. The mapping of the organisation's flows feeds the definition of the boundaries that delimit the study (organisational, temporal, operational). Conversely, the definition of the boundaries will limit the identification of emission sources. The two reflections thus feed each other.
Identify the flows for which the organisation is responsible and dependent.
The organization shall identify all incoming, internal and outgoing flows: energy flows, fluids, raw materials, people, products (goods and services), and waste that are necessary for the activity, regardless of who is “responsible” for them.
In a carbon-dependency logic: if one of the flows listed above influences, or is influenced by the organisation's activity, then it must be included in the boundary. If a flow is carbon-intensive, this means that the organisation's activity is vulnerable (fossil fuel prices, carbon tax, model compatible with a low-carbon world, etc.) and that it is necessary to quantify this flow. Theprimary objective of the Bilan Carbone® is to know what to act on and how.
This allows preparation for the accounting phase, by being certain to include all the direct and indirect emissions of the organisation, and to be exhaustive when collecting activity data.
Accounting for emissions “in dependency” makes it possible to build a transition plan that will act on the compatibility of the activity with a low-carbon model.
Requirements relating to the mapping of emission sources
The organization shall identify all emission sources to be taken into account in its Bilan Carbone®. Here are different recommendations to achieve for each of the 3 maturity levels.
Beginner, Intermediate and Advanced level: criterion F1, F2 and F3
The organization shall produce a flow mapping.
The elements to be mapped are energy flows, fluids, raw materials, people, products (goods and services), and waste, drawing inspiration from the model below.
Example of iterative development of a flow mapping:
🔄 Diagram the organisation chart of the organisation by listing all buildings, offices, subsidiaries, groups of customers and suppliers, etc. that surround it. This step will make it possible to define the organisational boundary.
🔄 For each building, office, etc., map all incoming, internal and outgoing flows that generate emissions, and the emission categories concerned by those flows. It is this identification of emission sources that will be used to define the operational boundary. This process is iterative because it allows the identification of possible omissions in the organisational boundary.
🔄 For each flow present on this flow mapping, it is then necessary to specify the associated activity data, allowing the construction of the data collection matrix. This construction process is iterative and evolves between the ideal data to collect and the available data.
🔄 Finalize the flow mapping thus obtained, with all relevant information.
Optional: quantified flow mapping
Depending on the organisation's maturity, it is recommended to quantify this flow mapping. This illustrative and educational resource is part of the recommendations in terms of Stakeholder engagement for the maturity levels Intermediate and Advanced on data collection and the reporting of the emissions profile.
⏳ For information, an example diagram of a quantified flow mapping will be inserted here shortly.
The base flow mapping obtained previously can be completed with the following 2 steps:
🔄 Iteratively complete this mapping throughout the collection with the values of activity data opposite the main flows. Finalise the quantified flow mapping thus obtained, with all relevant information.
🔄 For reporting, the mapping is completed by the values of emissions opposite the main flows. It serves as a visual basis for a better understanding of the results and the link between physical flows and GHG emissions.
The quantified mapping then serves as a dashboard. It can thus support an annual monitoring of significant activity data. annual monitoring of significant activity data.
Optional for an Advanced level: analytical mapping
To express the Bilan Carbone® in coherence with analytical carbon accounting, the organisation shall identify the same emission sources (those for which it is responsible and dependent), but with the objective of then allocating them according to an “analytical” mapping that will cross accounting codes and analytical dimensions.
It identifies supported and non-supported emissions. Supported emissions come from activities financed by the organisation. They therefore appear in accounting exports. Non-supported emissions are not financed by the organisation, but are nevertheless included mandatorily.
Supported emissions are mapped from the company’s accounting data. To identify supported emissions, an analysis of the accounting exports is carried out to identify all account classes:
Representing a physical flow,
For which there is a cost or ongoing depreciation in the analysed period.
All identified account classes must be included in Analytical Carbon Accounting as one or more emission categories.
Emissions not supported by the company must be added. To account for non-supported emissions, it is possible to carry out a flow mapping or any other method allowing the exhaustive identification of the list of emission categories. The objective is to identify all physical flows on which the organisation's activities depend and which are not supported by the organisation. These flows must be integrated into Analytical Carbon Accounting as one or more emission categories.
The organisation can find in section 4.5 a correspondence table listing all accounting codes that will need to be reviewed in order to identify the emission sources that must be considered within the Bilan Carbone®.
A resource proposed in the annex provides a reusable flow mapping template.
2️⃣ Nomenclature of emission categories
The emission sources generated by the organisation's activity (direct or indirect) are to be allocated within the different emission categories of the Bilan Carbone®.
List of emission categories and subcategories of the Bilan Carbone®:
🌐 English version of this image.
Descriptions of the emission categories and subcategories of the Bilan Carbone®:
🌐 English version of this image.
Other nomenclatures:
Several nomenclatures exist and can be combined. The important thing is to be exhaustive on the boundary because it is easy toexport these results into several different nomenclatures at the same time (Bilan Carbone® categories, BEGES regulatory categories and items and ISO 14064-1, structure of the analytical plan, GHG-P scopes, etc.).
To express the Bilan Carbone® according to other nomenclatures, frameworks or standards, complementary steps may be necessary.
For example:
To obtain an export consistent with the Regulatory GHG Assessment, a characterisation of emission sources is necessary (to characterise an operated, supported, etc.)
To obtain an export consistent with the analytical carbon accounting, it is necessary to divide the identified emission sources in the accounting exports by analytical dimensions (site, activity, team, supplier, client…). Note that the dimensions may differ for each source (for example energy will be divided by site, or purchases by supplier).
3️⃣ Identification of indirect emissions and delimitation of the operational boundary
The notion of indirect emissions
🔎 The ISO 14064-1 standard distinguishes direct emissions (sources controlled by the organisation) from indirect emissions (sources necessary for the organisation's activities).
The Bilan Carbone® method aims to be exhaustive and includes all emitting flows in a carbon-dependency logic, and therefore all direct and indirect emissions.
Where do indirect emissions stop?
“Do the indirect emissions of a headlamp manufacturer include the headlamp's electricity consumption during its use? Or also the vehicle's fuel consumption over its lifetime?”
“Do the indirect emissions of an advertising campaign include the energy consumption of the advertising spots? Or also the products it promotes?”
“Do the indirect emissions of a museum include the travel of foreign tourists? Or only pro rata to their stay near the museum?”
☑️ The answer to these frequent questions here is systematically “ Yes ”.
The extent to which indirect emissions are taken into account is determined on a case-by-case basis, for example depending on activity sectors. The organisation may refer to theannex to assist in determining the boundary.
This is not about quantifying the organisation's climate influence (or Climate shadow). This notion is complementary to the carbon footprint for the analysis of results and the prioritisation of actions.
Some indirect activities will simultaneously generate induced, avoided and sequestered emissions. As recalled here, these emissions belong to different pillars of climate action, and are thus strictly non-combinable: neither additive nor subtractive.
The notion of significant indirect emissions
It is accepted that some sources of indirect GHG emissions, within an organisation's operational boundary, do not contribute significantly to the total indirect emissions. For an emission to be considered significant, it must meet at least one of the significance criteria.
The notion of significance can be useful for setting priorities during accounting, when choosing actions or monitoring results. These significance criteria make it possible, for example, toidentify the actions most efficient for reducing the organisation's GHG emissions.
🔎 Some international standards (ISO 14064-1), or national standards (BEGES-R), propose identifying emission sources that are significant for the organisation.
The organisation may refer to theannex to assist in determining significance. In the Bilan Carbone®, the procedure of delimiting the boundary to significant emissions is possible for the Beginner level only.
Requirements relating to the operational boundary
The organization shall delimit the operational boundary to be taken into account in its Bilan Carbone®. Here are different recommendations to achieve for each of the 3 maturity levels.
Beginner level: criterion E1
The Bilan Carbone® method aims to be exhaustive and includes all emitting flows in a carbon-dependency logic, and therefore all direct and indirect emissions.
The organisation refers to theannex to assist in determining significance : in summary, emissions are considered significant if they are substantial from a quantitative point of view (magnitude or materiality criterion), if they are directly influenced by the organisation (influence and leverage criterion), if they contribute to exposure to risks and opportunities (strategic importance and vulnerability criterion), if they are considered significant for the organisation's sector of activity (sectoral guidance criterion), if they result from core activities outsourced by the organisation (outsourcing criterion), and if they are likely to mobilise employees (staff engagement criterion).
Concerning emissions considered non-significant, the Bilan Carbone® method recommends including them as far as possible to cover the entire boundary, if necessary with assumptions generating a higher uncertainty.
It is at least requested for a Beginner level to take into account all direct emissions and between 80% and 100% of the organisation's indirect emissions.
🔎 This corresponds to the magnitude or materiality criterion as defined by the Regulatory GHG Assessment or the ISO 14064-1 standard: “Indirect emission categories estimated to be substantial from a quantitative point of view should be retained. A minimum magnitude threshold to be considered is expressed as a percentage. It establishes the minimum proportion of indirect emissions of the operational boundary to include. The magnitude threshold should not be lower than 80%. ”
The organisation may rely on several resources detailed in the annex to include all its significant indirect emissions.
Emission sources considered non-significant are justified, documented and reported (concerned categories and non-significance criterion).
During the assessment update, making accessible a data point previously unknown or unquantified should be an objective of the organisation, in order to progressively account for 100% of indirect emissions.
Intermediate and Advanced: criteria E2 and E3
The Bilan Carbone® method aims to be exhaustive and includes all emitting flows in a carbon-dependency logic, and therefore all direct and indirect emissions.
It is requested for an Intermediate and Advanced level to include in the assessment all the organisation's direct and indirect emissions, whether significant or less significant.
The notion of significance criteria remains relevant for the organisation:
Indirect emission sources that check several of the 6 criteria must receive particular attention at all levels (regular and tracked accounting, low uncertainty, priority actions).
Indirect emission sources that do not check any of the 6 criteria do not necessarily require regular monitoring, priority actions and may be accounted with high uncertainty.
The organisation may rely on several resources detailed in the annex.
🔎 If the Bilan Carbone® must be used for reporting of the Regulatory GHG Assessment, the operational boundary considered here, whatever the maturity level, is compliant with regulatory expectations, notably regarding the magnitude criterion and its justification. In this case, it constitutes the Reporting boundary.
All information on the operational boundary is documented and reported.
Do you have a comprehension question? Consult the FAQ. The method is living and therefore likely to evolve (clarifications, additions): find the track of changes here.
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