Boundary Setting (Part 1)

Introduction

The next step in the inventory process is to define the boundary. The boundary identifies which emissions and removals are included in the GHG inventory.

1. Identifying Attributable Processes: Think of the product you’re studying, like a smartphone. Identify all the different steps or processes that are directly linked to making and using that smartphone. This includes things like extracting raw materials, manufacturing the phone, transporting it, using it, and eventually disposing of it.
2. Grouping Processes into Life Cycle Stages: Take all those processes you identified and group them into different stages of the product’s life. For a smartphone, these stages might be “Raw Material Extraction,” “Manufacturing,” “Transportation,” “Use,” and “Disposal.”

3. Identifying Flows for Each Process: Now, for each of those processes, figure out what materials, services, and energy are used or needed. For example, in the manufacturing stage, you might need metals, plastics, and electricity.

4. Illustrating Processes with a Map: Create a visual map that shows how each process is connected in the life cycle of the product. This map helps you understand the flow of materials, energy, and services from one stage to another.

Requirements

1. The boundary of the product GHG inventory shall include all attributable processes.
2. Companies shall report the life cycle stage definitions and descriptions.
3. Companies shall disclose and justify any exclusions of attributable processes in the inventory report.
4. Companies shall report attributable processes in the form of a process map.
5. Companies shall report any non-attributable processes included in the boundary.
6. The boundary for final products shall include the complete life cycle, from cradle-to-grave.
7. The boundary of a cradle-to-gate partial life cycle inventory shall not include final product use or end-of-life processes in the inventory results. Companies shall disclose and justify when a cradle-to-gate boundary is defined in the inventory report.
8. Companies shall report the time period of the inventory.
9. Companies shall report the method used to calculate land-use change impacts, when applicable.

1. Defining the Boundary:

The boundary of a greenhouse gas (GHG) inventory for a product should include all the processes that contribute to its creation, use, and disposal. These processes involve the use of services, materials, and energy.

2. Attributable Processes:

These are the processes directly linked to the product’s life cycle. Examples include making the product, its components and packaging, and the energy used during production and transportation.

3. Life Cycle Stages:

The product’s life is divided into stages like manufacturing, use, and disposal. There are five general life cycle stages, but companies can customize these stages to better fit their specific product.

4. Exclusions from Inventory:

1. Some processes may be excluded from the inventory if there’s a lack of data, and estimates or proxies cannot be determined. The reasons for exclusion must be disclosed in the report.
2. Attributable processes may be excluded from the inventory if all of the following are true:
   • A data gap exists because primary or secondary data cannot be collected
   • Extrapolated and proxy data cannot be determined to fill the data gap
   • An estimation determines the data are insignificant

5. Process Map:

1. A visual map illustrating how the product moves through its life cycle is required. This map shows the stages, processes, and flow of the product, and any excluded processes.
2. At a minimum, the reported process map should identify the following items:
   • The defined life cycle stages
   • The generalized attributional processes in each stage
   • The flow of the studied product through its life cycle
   • Any attributable processes excluded from the inventory

6. Non-Attributable Processes:

1. Some flows, like those related to capital goods, overhead operations, and corporate activities, are not directly linked to the product. Companies may choose not to include them, but if included, they must disclose this decision.
2. Examples include service, material, and energy flows due to:
   • Capital goods (e.g., machinery, trucks, infrastructure).
   • Overhead operations (e.g., facility lighting, air conditioning).
   • Corporate activities and services (e.g., research and development, administrative functions, company sales and marketing).
   • Transport of the product user to the retail location.
   • Transport of employees to and from works.

7. Boundary for Final and Intermediate Products:

The boundary for final products must cover the entire life cycle, from creation to disposal. For intermediate products, if the function of the final product is known, a full life cycle inventory is needed.

8. Time Period of Inventory:

The time it takes for a product to complete its life cycle must be reported. Durable goods like cars may have a period of three years or more, while non-durable goods like food may have a period of one year or less.

9. Land-Use Change Impacts:

If the product involves biogenic materials, the impact of land use changes, such as deforestation, should be considered. The method used to calculate these impacts must be reported.

10. Indirect Land-Use Change:

Indirect land-use change, caused by market factors affecting land use, is not a strict requirement. However, if it’s significant, it should be reported separately.