Operational boundaries

Operational boundaries determine which greenhouse gas (GHG) emission sources are measured and managed by your organization. Learn about determining operational boundaries for Climate Smart.

On this page:

• Overview
• Set operational boundaries
• FAQs

Overview

The purpose of a GHG inventory is to help your organization choose informed Reduction Strategies to lower the emissions that you control. Control can be defined in a few different ways according to the GHG Protocol.

BMO Radicle’s Climate Smart takes an operational control approach, meaning your organization accounts for emissions from the activities that you make decisions about. This way, your organization is only responsible for emission sources that you can reduce.

Through this approach, you’ll need to set operational boundaries. Operational boundaries involve identifying and categorizing the emissions associated with your organization.

Set operational boundaries

To set operational boundaries, you’ll brainstorm all the emission sources associated with your organization and sort those activities into Scope 1, Scope 2, or Scope 3.

All Scope 1 and Scope 2 activities need to be included in your GHG inventory. Then, decide which Scope 3 emissions will be included in your GHG inventory and which emissions will be left out. Remember to document why you’re excluding any activities.

While setting boundaries for your inventory, consider:

• Materiality: Do the emissions come from a core business requirement?
• Influence: Can you control reductions for the emission source?
• Significance: Are the emissions a big portion of your total emissions?
• Accessibility: Can you collect data easily and consistently every year?

Starting your first inventory? It’s normal to start small and include more emission sources as your capacity grows. Review data collection tips for help deciding which activities to track based on the information available to you.

FAQs

How many Scope 3 activities should I measure?

Some organizations choose to include as many emission sources as possible in their GHG inventory, while others want to focus on fewer activities with more accurate information. Either approach aligns with the GHG Protocol.

While deciding how many Scope 3 activities to measure, consider the GHG Protocol principles. If your team spends more time measuring and estimating emissions than reducing them, it might be worth limiting your boundaries until you have more capacity.

I don’t have any Scope 1 activities. What should I do?

This is common for office-based organizations in leased spaces. Scope 2 and Scope 3 activities are still important for your inventory and reducing these emissions can make a significant impact on your carbon footprint.

Engage with key vendors, employees, and partners about your sustainability journey. If they’re already measuring their emissions, they can share their data to help your organization more accurately track your emission reduction efforts. If not, maybe you’ll get them to start tracking their emissions too! The climate needs everyone to think about reducing their GHG emissions.