Emissions
Organizational Boundary Definitions are Critical to Enterprise Carbon Emissions Reporting
Any organization needs to be able to predetermine its organizational boundary in order to accurately report greenhouse gas emissions. Such pertains to the company’s legal position and its position in having a direct control over emission sources.
An organizational boundary take into account whether the operation is part of an umbrella company, a subsidiary and also determines whether the operation is in financial control of the assets or operational control as it refers to the gas emissions.
When an organization has determined its organizational boundary it must then establish an operational boundary which will define the scope of both direct and indirect emissions within that organizational boundary. There are a number of levels of operation in an organization and it will be up to the decision makers of a company’s operations to establish its operational boundaries pertaining to the three emission scopes. Once the operational boundary has been established it must be applied uniformly within the enterprise.
Within the operational boundary lies the potential for several different types of emissions scope. These are defined as direct, indirect or indirect optional emissions. If the enterprise has direct control over electricity generation or uses fossil fuel within its process it must report these under scope one. In addition, any kind of vehicle transportation that is directly utilized by the organization, cars, trucks or trains, must also be reported here. Accidental leak is a scope one reporting burden.
An enterprise needs to report emissions related to energy consumption and shall be under scope two. The scope emissions are relatively easy to categorize, often by reference to meters.
Reporting for the third scope is considered optional which can relate to emissions which are spent as a consequence of supplier activities, employee travels, among others. You will likely have to compose a life cycle analysis and identify the entire supply chain to identify the scope of emissions associated with your operation in this way.
Considerable emissions are related to your business processing materials as outputs or inputs of production. Likewise, end of use disposal emissions should be identified.
Identification and categorization of all emission scopes, be they direct, indirect or optional can be quite a complex task and must be the responsibility of the highest levels of management. Although greenhouse gas reporting is voluntary, there’s a high possibility that in a very short time, reporting requirements might become mandatory. Carbon emissions and its consequent environmental impacts is already a thing of the mainstream and consumers are already very much aware of it.
It is in the best interests of the enterprise to ensure that it is entirely transparent and has exercised extreme care and diligence when identifying its operational boundary and the variety of emission scopes that it needs to take responsibility for.
About the Author
Carbon Reduction Commitment Energy Efficiency Scheme Introduction – The UK government has taken the first initiative with the introduction of the Carbon Reduction Commitment legislation which will force an estimated 5,000 companies, directly affected by the law, to take part in a “cap and trade” scheme and to produce carbon emissions reports. Learn about Sustainability Resource Planning (SRP) software from Verisae at http://www.verisae.com/articles
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