2.4 - Operational boundary
Which emission sources shall be included in the operational boundary?
All the GHG emissions generated by the organisation's establishments, equipment and facilities (i.e: from the organisational boundary), constitute the operational boundary of the assessment.
The definition of the operational boundary is carried out in 3 steps:
Identification of emission sources;
Allocation of these emission sources according to the emission category nomenclature of the Bilan Carbone®;
Identification of indirect emissions and delineation of the operational boundary
1️⃣ Identification of emission sources
The organisation 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 informs the definition of the boundaries that delimit the study (organisational, temporal, operational). Conversely, the definition of the boundaries will delimit the identification of emission sources. The two lines of thinking thus feed into each other.
Identify the flows for which the organisation is responsible and dependent.
The organisation 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-dependence logic: if one of the flows listed above influences, or is influenced by, the organisation's activity, then it shall be included in the boundary. If a flow is carbonised, 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 alignment of the activity towards a low-carbon model.
Requirements relating to the mapping of emission sources
The organisation 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 organisation shall produce a flow map.
The elements to map 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 map:
🔄 Diagram the organisation's organisational chart by listing all buildings, offices, subsidiaries, groups of customers and suppliers, etc. that revolve around it. This step will make it possible to define the organisational boundary.
🔄 For each of the buildings, offices, 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 allows the identification of possible omissions in the organisational boundary.
🔄 For each flow appearing on this flow map, the associated activity data must then be specified, allowing the construction of the data collection matrix. This construction process is iterative and evolves between the ideal data to collect and the data available.
🔄 Finalize the flow map thus obtained, with all relevant 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 Intermediate 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 shortly.
The base flow map obtained previously can be completed with the following 2 steps:
🔄 Iteratively complete this map throughout data collection with the values of activity data against the main flows. Finalise the quantified flow map thus obtained, with all relevant information.
🔄 For reporting, the map is completed with the values of emissions against the main flows. It serves as a visual basis for better understanding the results and the link between physical flows and GHG emissions.
The quantified map then serves as a dashboard. It can thus be used to support 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 shall identify the same emission sources (those for which it is responsible and dependent), while keeping the objective of then allocating them according to a so-called “analytical” map which will cross accounting codes and analytical axes.
It identifies supported and non-supported emissions. Supported emissions come from activities financed by the organisation. Therefore they appear in accounting exports. Non-supported emissions are not financed by the organisation, but are nevertheless obligatorily 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 account classes:
Representing a physical flow,
For which there is a cost or ongoing depreciation over 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 create 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 shall 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 the accounting codes 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 map 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 Bilan Carbone® categories and sub-categories:
🌐 English version of this image.
Descriptions of Bilan Carbone® categories and sub-categories:
🌐 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, categories and items of the Regulatory GHG Assessment 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, additional steps may be necessary.
For example:
To obtain an export consistent with the Regulatory GHG Assessment, a characterisation of the 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 into accounting exports by analytical axes (site, activity, team, supplier, customer…). 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 delineation 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-dependence logic, and therefore all direct and indirect emissions.
Where do indirect emissions stop?
“Do the indirect emissions of a headlight manufacturer include the electricity consumption of the headlight during its use? Or also the fuel consumption of the vehicle 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 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 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 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 to set 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 that are significant for the organisation.
The organisation may refer to theannex to assist in determining significance. In the Bilan Carbone®, the procedure for delimiting the boundary to significant emissions is possible for the Beginner level only.
Requirements relating to the operational boundary
The organisation 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-dependence 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 deemed 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 engage staff (staff engagement criterion).
Regarding emissions judged non-significant, the Bilan Carbone® method recommends including them as far as possible to cover the entire boundary, if necessary with assumptions causing 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 considered quantitatively substantial shall be retained. A minimal magnitude threshold to consider is expressed as a percentage. It establishes the minimal proportion of the operational boundary's indirect emissions to include. The magnitude threshold shall 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 renewal, making available a data point 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-dependence logic, and therefore all direct and indirect emissions.
It is requested 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 meet several of the 6 criteria shall receive particular attention at all levels (regular tracked accounting, low uncertainty, priority actions).
Indirect emission sources that meet none of the 6 criteria do not necessarily require regular monitoring, priority actions and may be accounted for with high uncertainty.
The organisation may for this rely on several resources detailed in the annex.
🔎 If the Bilan Carbone® is to serve for reporting to the Regulatory GHG Assessment, the operational boundary considered here, regardless of the maturity level, complies 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 alive and therefore likely to evolve (clarifications, additions): find the track of changes here.
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