Organisational boundaries and why intensity ratios break

Intensity ratios look simple until the denominator and numerator stop sharing a boundary. A common break: emissions exclude a joint venture while revenue in the denominator still includes the equity-accounted share discussed in the financial statements.

Questions we ask at intake

1. Does the climate workbook follow operational control, financial control, or equity share?
2. Did any acquisition or disposal change the boundary mid-year?
3. Is the intensity denominator the same caption readers will find in the financial highlights?

Answering these before drafting the narrative saves days of later reconciliation. When the answers are unclear, we pause quantitative testing rather than invent a boundary the client has not adopted.