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Climate Registry Defines Organizational Boundaries

The Climate Registry contains organizational boundaries. These are defined to enable the tracking, accounting and reporting of greenhouse gas emissions. Companies within the United States provid information on a voluntary basis to assist in the ongoing battle to reduce global warming potential.

By definition, organizational boundaries determine an entitys operation and whether it is owned or controlled by the reporting company. The reporting can be based on either the equity share or control consolidation approach.

One of the means of defining organizational boundaries is the equity share approach. This accounting method is used to report greenhouse gases emissions for each operation based on its sheer of the economic pie. The percentage would determine the extent of ownership that an entity has based on a simple profit and loss share of the entire operation.

The control approach for defining organizational boundaries is the emissions accounting method in which an entity reports 100% of its greenhouse gas emissions from all operations under its operational or financial control. Ownership, whether full or partial, does not factor into the equation.

The Climate Registry is a nonprofit, non-government organization that distributes information aimed at reducing greenhouse gas emissions. The registry has developed standards to be used by businesses and governments throughout North America to calculate, verify and report their greenhouse gas emissions in one, unified registry. Currently, over 330 corporations representing most industry sectors, government entities and nonprofit groups are members of the registry.

Under the greenhouse gas emissions registry, organizational boundaries must be reported for revenue and nonrevenue services, services provided under contract to another, privately operated services, administrative buildings, leased or owned stations and facilities, para transit and van pools.

It has been known for a long time that greenhouse gases leads to global warming. Several environmentally damaging gases are found in refrigeration and cooling systems, and known villains include hydrochlorofluorocarbons, chlorofluorocarbons, perfluorocarbons and carbon dioxide, methane, chlorine, bromine, nitrous oxide, methyl bromide, methyl chloroform, sulfur hexafluoride, hydroxyl, halons, carbon tetrachloride, fluorine, and the fluorinated gases hydrofluorinated ethers and nitrogen trifluoride.

An inventory management plan has been established within the Climate Registry, which requires facilities to indicate the methods they use for reporting. There are four different determinants — the control approach with equity share using operational control criteria, control approach with equity share using financial control, control approach based on operational control, and control approach based on financial control. Facilities must also indicate a master list of the buildings within their organizational boundaries, including an address, the ownership percentage, and the types equipment and emissions produced. Many facilities are turning to refrigerant management programs to track and report this information, with regard to their refrigeration and air-conditioning systems or heating, ventilation and air conditioning systems.

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