Operational Control Boundary

An Operational Control Boundary is one of the methods used to define the organizational boundary for greenhouse gas (GHG) emissions reporting under the GHG Protocol. It determines which emissions a company is responsible for based on whether it has operational control over a facility or operation.

Under the operational control approach, a company reports 100% of the emissions from operations over which it has the authority to introduce and enforce policies, even if it doesn’t own the entity.

This approach contrasts with:

• Equity share boundary: Reports emissions based on ownership percentage.

• Financial control boundary: Based on financial authority rather than operational authority.

The operational control method is widely used for corporate carbon footprints and is preferred when the organization has day-to-day authority over operational decisions.

1. What is the operational control boundary?

It’s a boundary-setting approach where a company reports emissions from operations over which it has the authority to implement operating policies, regardless of ownership share.

2. How is "operational control" defined?

A company has operational control if it can direct the day-to-day activities and enforce environmental, health, and safety policies at a site or facility.

3. How does it differ from the equity share and financial control approaches?

• Equity share: Emissions are reported in proportion to the company’s ownership stake.

• Financial control: Based on having the ability to direct financial and operating policies for profit purposes.

• Operational control: Based on management authority, not ownership or investment control.

4. Why use the operational control approach?

• It reflects actual influence over emissions-producing activities.

• Enables better management and accountability for reduction.

• Often aligns with internal decision-making structures (e.g., operations teams).

5. What types of emissions are included under operational control?

• All Scope 1 (direct) and Scope 2 (indirect from energy) emissions from controlled operations.

• Scope 3 emissions are included separately but not bounded in the same way.

6. Can a company use more than one boundary approach?

Yes, but it must clearly disclose which approach is used and apply it consistently across its reporting. Hybrid models are discouraged unless necessary and transparently justified.

7. What are the challenges of using the operational control approach?

• Ambiguity in joint ventures or contract-managed sites.

• Requires clear internal documentation and governance.

• May omit emissions from sites the company owns but does not control.

8. What’s an example of operational control in practice?

If Company A operates a warehouse it leases (but doesn’t own), and it manages staffing, equipment, and processes, it has operational control and should report emissions from that warehouse.

9. How does this affect emissions reduction strategies?

Focusing on operationally controlled sites allows a company to target emissions where it has direct influence, making reductions more feasible and measurable.

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