Glossary entry

Target Boundaries

Definitions

Target Boundary

Target Boundary means the following parameters [the Company] [will/ should] use when setting its [Net Zero Target/ emissions reduction target]:

(a) the [operational control/ financial control/ equity share] method will be used to determine [Company’s] organisational boundary;

(b) near-term emissions reduction targets will cover at least [95%] of Company-wide Scope 1 and 2 Emissions and at least [67%] of Scope 3 Emissions;

(c) long-term emissions reduction targets will cover at least [95%] of Company-wide Scope 1 and 2 Emissions and at least [90%] of scope 3 emissions; and

(d) emissions reduction targets will cover all Greenhouse Gases.

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Drafting notes

Companies should use the same boundaries when: (i) accounting for their current emissions; and (ii) setting net zero targets and emissions reduction targets.

See the Greenhouse Gas Protocol for an understanding of the different organisational boundary approaches.

Application

Supply and value chain clauses, national climate laws, green leases, investment agreements, financial reporting, corporate governance documents and potentially public procurement documents.