2.4 - Operational boundary

Which emission sources should be included in the operational boundary?

Source: Freepik

All GHG emissions generated by the organisation's establishments, equipment and installations (i.e: of the organisational boundary), constitute the operational boundary of the assessment.

The definition of the operational boundary is done in 3 steps:

1. Identification of emission sources;

2. Allocation of these emission sources according to the emission category nomenclature of the Bilan Carbone®;

3. Identification of indirect emissions and delimitation of the operational boundary

1️⃣ Identification of emission sources

The organisation must identify the emission sources that will constitute its Bilan Carbone®.

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 organisation must identify all incoming, internal and outgoing flows: energy flows, fluid flows, 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 integrated into 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 makes it possible to prepare the accounting phase, being certain to include all direct and indirect emissions of the organisation, and to be exhaustive when collecting activity data.

Accounting for emissions “in dependence” 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 organisation must identify all emission sources to be taken into account in its Bilan Carbone®. Here are various recommendations to achieve for each of the 3 maturity levels.

Initial, Standard and Advanced Level: criterion F1, F2 and F3

The organisation must produce a flow map.

The elements to be mapped are energy flows, fluid flows, raw materials, people, products (goods and services), and waste, taking inspiration from the model below.

Figure 2.4.1: Example of a flow map

Example of iterative development of a flow map:

1. 🔄 Diagram the organisation's organisational chart by listing all buildings, agencies, subsidiaries, groups of customers and suppliers, etc. that revolve around it. This step will make it possible to define the organisational boundary.

2. 🔄 For each of the buildings, agencies, etc., map all incoming, internal and outgoing flows that generate emissions, and the emission categories concerned by these flows. It is this identification of emission sources that will be used to define the operational boundary. This process is iterative because it makes it possible to identify any omissions in the organisational boundary.

3. 🔄 For each of the flows present on this flow map, specify the associated activity data, making it possible to construct the data collection matrix. This construction process is iterative and evolves between the ideal data to collect and the data available.

4. 🔄 Finalize the flow map thus obtained, with all pertinent information.

Optional: quantified flow map

Depending on the organisation's maturity, it is recommended to quantify this flow map. This illustrative and educational resource is part of the recommendations in terms of Stakeholder engagement for the maturity levels Standard and Advanced on data collection and the reporting of the emissions profile.

⏳ For information, an example diagram of a quantified flow map will be inserted here soon.

The flow mapping base obtained previously can be completed with the following 2 steps:

1. 🔄 Complete this mapping iteratively throughout the collection with the values of the activity data facing the main flows. Finalize the quantified flow map thus obtained, with all pertinent information.

2. 🔄 For reporting, the map is completed with the values of the emissions facing 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 map then serves as a dashboard. It can thus be used as a support for an annual monitoring of significant activity data.

Optional for an Advanced Level: analytical map

To express the Bilan Carbone® in coherence with the analytical carbon accounting, the organisation must identify the same emission sources (those for which it is responsible and dependent), but keeping the objective of then allocating them according to a so-called “analytical” map that will cross accounting codes and analytical axes.

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 still mandatorily included.

• 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 classes of accounts:

  • Representing a physical flow,

  • For which there is a cost or depreciation in progress over the analysed period.

  All identified account classes must be included in Analytical Carbon Accounting as being 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 map 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 that are not supported by the organisation. These flows must be integrated into Analytical Carbon Accounting as being one or more emission categories.

⏳[WIP] The organisation will soon be able to find a correspondence table listing all accounting codes to be reviewed in order to identify the emission sources that must be considered within the Bilan Carbone®.

A resource proposed in an appendix provides a reusable flow mapping template.

2️⃣ Emission category nomenclature

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 categories and subcategories of the Bilan Carbone®:

Figure 2.4.2: Nomenclature of categories and subcategories of the Bilan Carbone®

Descriptions of the categories and subcategories of the Bilan Carbone®:

Figure 2.4.3: Nomenclature of categories and subcategories of the Bilan Carbone®

Other nomenclatures:

Several nomenclatures exist and can be combined. The important thing is to be exhaustive about the boundary because it is easy toexport these results into several different nomenclatures at the same time (Bilan Carbone® categories, categories and items of the Regulatory GHG Assessment and ISO 14064-1, structure of the analytical plan, scopes of the GHG-P, etc.).

To express the Bilan Carbone® according to other nomenclatures, frameworks or standards, additional steps may be necessary.

For example:

• To obtain an export coherent with the Regulatory GHG Assessment, a characterisation of emission sources is necessary (to characterise an operated, supported, etc.)

• To obtain an export coherent with the analytical carbon accounting, it is necessary to divide the identified emission sources into accounting exports by analytical axes (site, activity, team, supplier, client…). Note that the axes 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

🔎 ISO 14064-1 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 headlight manufacturer include the electrical consumption of the headlight 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 prorated to their stay near the museum?”

☑️ The answer to these frequent questions is systematically “ Yes ”.

The extent of the consideration of indirect emissions is determined on a case-by-case basis, for example depending on the sectors of activity. The organisation may refer to theappendix to help determine the boundary.

This is not about quantifying the organisation's climate influence (or climate shadow). This notion is complementary to the carbon footprint for result analysis and action prioritisation.

Some indirect activities will simultaneously generate induced, avoided and sequestered emissions. As reminded here, these emissions belong to different pillars of climate action, and are therefore strictly non-combinable: neither additive nor subtractable.

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 when monitoring results. These significance criteria make it possible, for example, toidentify the most efficient actions to reduce the organisation's GHG emissions.

🔎 Some international standards (ISO 14064-1), or national ones (BEGES-R), propose identifying the emission sources significant for the organisation.

The organisation may refer to theappendix to help determine significance. In the Bilan Carbone®, the procedure of delimiting the boundary to significant emissions is possible for the Initial level only.

Requirements relating to the operational boundary

The organisation must delimit the operational boundary to be taken into account in its Bilan Carbone®. Here are various recommendations to achieve for each of the 3 maturity levels.

Initial 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 theappendix to help determine significance : in summary, emissions are considered significant if they are substantial from a quantitative point of view (magnitude or importance 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 judged significant for the organisation's sector of activity (sector guideline criterion), if they result from core activities outsourced by the organisation (outsourcing criterion), and if they are likely to mobilise staff (employee engagement criterion).

Regarding emissions judged non-significant, the Bilan Carbone® method recommends including them as much as possible to cover the entire boundary, if necessary with assumptions resulting in a higher uncertainty .

At minimum, it is required for an Initial 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 importance criterion as defined by the Regulatory GHG Assessment or the ISO 14064-1 standard: “Indirect emission items estimated as substantial from a quantitative point of view are to be retained. A minimal 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 must not be less than 80%. ”

The organisation may rely on several resources detailed in the appendix 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 renewal, making available data previously unknown or unquantified should be an objective of the organisation, in order to progressively account for 100% of indirect emissions.

Standard and Advanced Level: 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 required for a Standard 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 tick several of the 6 criteria must be subject to particular attention at all levels (regular and monitored accounting, low uncertainty, priority actions).

• Indirect emission sources that do not tick any of the 6 criteria do not necessarily need to be regularly monitored, subject to priority actions and may be accounted for with high uncertainty.

The organisation may for this rely on several resources detailed in the appendix.

🔎 If the Bilan Carbone® is to serve for the reporting of the Regulatory GHG Assessment, the operational boundary considered here, whatever the maturity level, is compliant with regulatory expectations, notably with regard to the magnitude criterion and its justification. In this case, it constitutes the reporting boundary.

All information on the operational boundary is documented and reported.

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Do you have a question of understanding? Consult the FAQ. The method is living and therefore likely to evolve (clarifications, additions): find the modification tracking here.