ESG by ZYT← All answersCarbon accounting
What is a reporting boundary, and why does every figure need one?
A boundary is the statement of what a figure covers: which parts of the business, which activities, which period, and on what basis. Without it a carbon number cannot be compared to anything or checked by anyone — two businesses can report wildly different figures for identical operations purely by drawing the boundary differently.
A complete boundary statement answers five questions:
- Which legal entities and sites are included, and on what consolidation basis — operational control is the usual choice for an SME.
- Which period. Calendar year and financial year are both fine; mixing them across years is not.
- Which scopes and, within Scope 3, which categories.
- What was excluded, and why.
- Which standard and GWP basis were used, and whether Scope 2 is location-based or market-based.
This is also the practical answer to a customer’s procurement questionnaire. A bare number invites follow-up questions; a number with its boundary usually ends the exchange.
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Last reviewed 2026-09-04