Talking GHG: Determining operational boundaries

PwC's accounting podcast

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In the third episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss step 3: determine operational boundaries. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, who illustrate the importance of correctly identifying operational boundaries and the impact on the accuracy of GHG reporting. They also discuss how it’s a critical step to helping organizations clearly define and understand the scope of their emissions.
Because different frameworks may prescribe different approaches while others provide some flexibility, it is key to understand your reporting requirements (as discussed in the first episode in this miniseries, Talking GHG: Reporting requirements for greenhouse gas emissions). We’ll highlight different approaches and the impacts (sometimes more significant than one would expect) that an organizational boundary may have on reporting.
In this episode, they discuss:

• 2:34 – What operational boundaries are and how they interact with organizational boundaries
• 4:37 - Overview of scope 1, scope 2, and scope 3 emissions and classification
• 10:44 – How and why operational boundaries are determined
• 18:13 - Challenges in classifying emissions from leased assets and the impact of different sustainability frameworks
• 34:19 – Practical advice for determining operational boundaries

For more information on GHG emissions reporting, including the scope 2 emissions discussed in today’s episode, check out Chapter 7: Greenhouse gas emissions reporting in PwC’s global Sustainability reporting guide. And to catch up on the GHG miniseries, listen to the first two episodes below.

• Talking GHG: Reporting requirements for greenhouse gas emissions
• Talking GHG: How organizational boundaries shape reporting

Marcin Olewinski is a PwC Assurance practice partner, with over 20 years of experience bringing valued perspectives and insights to large clients in the energy sector. Additionally, he’s focused extensively within PwC’s National Office on greenhouse gas emissions and sustainability reporting and leads PwC’s global technical working group focused on GHG.
Kelsey Pizza is a senior manager in PwC’s National Office. She provides advice on technical accounting issues and monitors developments in financial reporting and standard setting. Kelsey helps develop PwC thought leadership, with a particular focus on sustainability reporting, clean and renewable energy accounting matters, and other topics affecting the utilities and sustainable energy sector.
Heather Horn
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [e-mail].

Capíttulos

1. Talking GHG: Determining operational boundaries (00:00:00)

2. What operational boundaries are and how they interact with organizational boundaries (00:02:34)

3. Overview of scope 1, scope 2, and scope 3 emissions and classification (00:04:37)

4. How and why operational boundaries are determined (00:10:44)

5. Challenges in classifying emissions from leased assets and the impact of different sustainability frameworks (00:18:13)

6. Practical advice for determining operational boundaries (00:34:19)