> ## Documentation Index
> Fetch the complete documentation index at: https://docs.salvidia.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Organisational boundaries

> How to define which entities and operations are inside your carbon footprint, and how Salvidia handles organisational boundaries.

Before you measure emissions, you need to decide **who and what is in scope**.

That decision is your **organisational boundary** – the line that says:

> “This footprint covers these entities, sites, and operations.”

Getting this clear up front makes your numbers easier to explain, repeat, and compare.

***

## What is an organisational boundary?

An organisational boundary defines:

* **Which entities** are included (legal entities, business units, brands)
* **Which sites** are included (offices, warehouses, venues, facilities)
* **Which operations** you’re responsible for (owned, leased, operated)

This boundary sits above scopes:

* **Organisational boundary** – who and what you’re including
* **Scopes 1, 2, 3** – how emissions are classified *within* that boundary

You choose the boundary once, then build your carbon footprint inside it.

***

## Approaches to organisational boundaries

Most standards (e.g. GHG Protocol) talk about two main approaches:

<Columns>
  <Column>
    <Card title="Control">
      Include the entities and operations where you have <b>operational control</b> (you control policies and processes).

      <br />

      <br />

      This is the most common approach and works well for most organisations.
    </Card>
  </Column>

  <Column>
    <Card title="Equity share">
      Include emissions based on your <b>ownership share</b> in each entity or asset.

      <br />

      <br />

      More common in joint ventures, investment-heavy groups, or where ownership is the key lens.
    </Card>
  </Column>
</Columns>

For most Salvidia users, **operational control** is the right default. You can still note important joint ventures or investments in your methodology.

<Note>
  If you don’t have external reporting requirements yet, don’t overcomplicate this. Start with the entities and sites you clearly control day-to-day, and refine later if needed.
</Note>

***

## What to include (in practice)

When defining your organisational boundary, think in three layers:

### 1. Legal entities

List the entities you’re including, for example:

* `Example Pty Ltd (Australia)`
* `Example NZ Limited (New Zealand)`

You might:

* Start with **just one core entity**, or
* Include a **cluster of related entities** if they’re operated as one group.

### 2. Sites and operations

Within those entities, list the major sites and operations:

* Offices, warehouses, factories
* Retail stores, venues, event spaces
* Data centres or key third-party facilities (if you effectively control the space)

### 3. Special cases

Flag anything that needs a specific decision, such as:

* Joint ventures
* Franchised locations
* Long-term leased assets
* Shared facilities with complex landlord–tenant relationships

You can document how you treat these in your **methodology**.

***

## How Salvidia models organisational boundaries

In Salvidia:

* Each **organisation assessment** is linked to your **workspace’s company profile**.
* Inside that assessment, you can represent **multiple entities and sites** using:
  * Tags
  * Custom fields
  * Separate tables or breakdowns (depending on your setup)

A typical pattern:

* Set the assessment up as:\
  `Example Group – AU & NZ – FY2025 Organisation footprint`
* Use **tags or fields** to distinguish:
  * `Entity: AU` vs `Entity: NZ`
  * `Site: Sydney HQ`, `Site: Melbourne Warehouse`, etc.

This lets you:

* Report one total footprint for the **group**, and
* Still slice results by **entity** or **site** if needed.

***

## Multi-entity groups and subsidiaries

If you operate multiple entities, you have a few options.

<Tabs>
  <Tab title="Single assessment (group)">
    Use one organisation assessment that covers all included entities.

    Good for:

    * Groups that operate as a single unit
    * High-level reporting to a parent company or board

    Consider:

    * Using tags/fields for sub-entities and sites
    * Clearly naming the assessment so it’s obvious which entities are included
  </Tab>

  <Tab title="Separate assessments (per entity)">
    Create one assessment per entity (e.g. AU, NZ, UK).

    Good for:

    * Entities with separate management, budgets, or reporting needs
    * Cases where each entity reports independently

    Consider:

    * A short group-level summary that rolls up key results
  </Tab>

  <Tab title="Hybrid">
    Use a mix:

    * Entity-level assessments for detail
    * A consolidated assessment or report for group-level view

    This can be more work, but gives maximum flexibility.
  </Tab>
</Tabs>

There’s no one “right” answer — clarity and consistency matter more than the exact structure.

***

## Organisational vs operational boundaries

Two related decisions:

* **Organisational boundary** – which entities and sites are “yours”
* **Operational boundary** – which emissions and scopes you include for those entities

Operational boundary choices include:

* Whether to include **all Scope 1 and 2** emissions
* Which **Scope 3 categories** are in or out for now
* How you treat things like **employee commuting** or **home working**

You can document your operational boundary alongside your organisational boundary so readers see **the full picture**.

See **[Scopes 1, 2, and 3 explained](/guides/scopes-1-2-and-3-explained)** for more.

***

## Example: simple organisational boundary

> “This footprint covers `Example Pty Ltd` and all operations under its control in Australia for FY2025.\
> It includes owned and leased offices, warehouses, and company vehicles.”

* **Organisational boundary:** Example Pty Ltd (Australia)
* **Operational boundary:** All Scope 1 and 2, plus selected Scope 3 categories

In Salvidia, this would typically be:

* One organisation assessment:\
  `Example Pty Ltd – FY2025 Organisation footprint`

***

## Example: group with AU and NZ entities

> “This footprint covers `Example Group` operations in Australia and New Zealand for FY2025, including `Example Pty Ltd` and `Example NZ Limited`.”

You could:

* Use **one group assessment** with tags for AU and NZ, or
* Use **two assessments** (one AU, one NZ) and combine the results manually in your reporting.

Salvidia supports both patterns; just make sure the **assessment name and methodology** make the boundary obvious.

***

## How to document your boundary in Salvidia

When you create an organisation assessment, we recommend adding a short boundary statement in your internal notes or methodology section:

* Which entities and sites are included
* Which major pieces are excluded (if any)
* Which approach you used (operational control vs equity share)
* Any special treatment for joint ventures, franchises, or shared sites

This makes it much easier to:

* Reproduce the footprint next year
* Explain differences between years or between entities
* Answer questions from auditors, clients, or stakeholders

***

## Quick checklist

Before you start entering data, you should be able to answer:

* ✅ Which **entities** are included in this assessment?
* ✅ Which **sites and operations** are in scope?
* ✅ Are we using **operational control** or **equity share** as our boundary lens?
* ✅ How are we treating any **joint ventures, franchises, or shared sites**?
* ✅ Have we written this down somewhere that future-you (or your team) can find?

If you can tick these off, you’re ready to build a footprint that’s much easier to trust and explain.

***

## Where to go next

* Learn how **scopes** sit within your boundary in **[Scopes 1, 2, and 3 explained](/guides/scopes-1-2-and-3-explained)**
* See how to balance perfection and practicality in **[Data quality tiers](/guides/data-quality-tiers)** (if you’ve enabled it)
* Or jump into **[Create your first assessment](/start-here/create-first-assessment)** and start putting this into practice.