Climate Registry Defines Organizational Boundaries

Organizational boundaries define requirements for accounting and reporting of greenhouse gas emissions. These boundaries are contained within the Climate Registry, and specifically define the emissions that an entity tracks and reports. In the United States, companies are providing this information to help in the reduction of global warming.

Organizational boundaries define an entity's operation and also specify whether it is controlled or owned by the company reporting. Reporting can be further based on an equity share or a consolidated control approach.

The equity share approach for defining organizational boundaries is the emissions accounting method in which an entity reports its greenhouse gas emissions per each operation based on its share of economic interest. The percentage would reflect the extent of rights, or ownership, an entity has based on its profit and loss share of the operation.

The control approach for defining organizational boundaries is the emissions accounting method in which an entity reports 100% of its greenhouse gas emissions from all operations under its operational or financial control. Ownership, whether full or partial, does not factor into the equation.

The Climate Registry is an important institution that aims to distribute information concerning greenhouse gas emissions. This nonprofit and nongovernmental organization has developed important standards used throughout North America to calculate and report emissions in a unified fashion. More than 330 corporations from all industry sectors, nonprofit groups and government entities are Registry members.

Under the greenhouse gas emissions registry, full organizational boundaries reporting is required for administrative buildings; revenue and non-revenue services operated by an entity; leased or owned stations and facilities operated by the entity; services provided by an entity under contract to another company; vanpools; and paratransit or other privately operated services contracted to the entity.

There are many greenhouse gases of significant concern. Environmentally damaging gases will lead to global warming. The most damaging are chlorofluorocarbons, hydrochlorofluorocarbons, perfluorocarbons, carbon dioxide, methane, chlorine, bromine, methyl bromide, methyl chloroform, sulfur hexafluoride, carbon tetrachloride, nitrogen trifluoride, hydrofluorinated ethers.

An inventory management plan has been established within the Climate Registry, which requires facilities to indicate the methods they use for reporting. There are four different determinants — the control approach with equity share using operational control criteria, control approach with equity share using financial control, control approach based on operational control, and control approach based on financial control. Facilities must also indicate a master list of the buildings within their organizational boundaries, including an address, the ownership percentage, and the types equipment and emissions produced. Many facilities are turning to refrigerant management programs to track and report this information, with regard to their refrigeration and air-conditioning systems or heating, ventilation and air conditioning systems.

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