Operational Boundaries

After defining organizational boundaries, organizations have to identify what is under their control and what doesn’t. This involves determining the extent to which each organizational node can alter the current course of things.

Operational boundaries define the limits of an organization’s control.

Site Mapping

To effectively delineate operational boundaries, organizations must engage in a thorough mapping of their sites, which involves identifying and categorizing all the physical locations within the organizational structure.

Sites refer to the specific locations, facilities, or places where activities are conducted under the control of an organization.

The following guide can be used to perform site mapping:

Inventory. An inventory should be created to encompass all physical locations where operations are conducted, including but not limited to factories, offices, and warehouses. This inventory should extend to all selected organizational nodes.
Categorization. Following the inventory phase, sites need to be categorized according to their operational role within the organization, such as production sites, research and development facilities, administrative offices, etc. Categorization aids in identifying the types of activities.
Assessment. The level of operational control exerted by the organization over each site must be assessed. Operational control is characterized by the capacity to make decisions or influence the activities and their impacts.
Documentation. The outcomes of the inventory, categorization, and assessment phases should be thoroughly documented. This documentation acts as a foundational reference for pinpointing activities that are encompassed within the organization's operational boundaries.
Review and Update. The process of mapping sites is ongoing and requires regular reviews and updates. These adjustments are crucial for accurately reflecting any changes in the organizational structure, operational control, or the incorporation of new sites.

Activity Identification

To properly assess operational boundaries, an organization must identify all activities under direct influence of operations within its organizational structure. The selection criteria is that all activities under operational control of each selected organizational node should be included.

Activities refer to any process within an organization's control.

External Activities

External activities are those that occur outside of an organization's operational control, such as production and distribution activities that fall under the waste accounting of suppliers and service providers. Considering external activities as part of an organization's internal system can result in multi-counting of events that could be already included in the accounting of third parties. If an organization wishes to account for external activities, it can prevent multi-counting through private agreements covering these topics with the entities involved.

Operational Edge Cases

When assessing operational control, organizations encounter various scenarios that might affect their waste accounting. These cases present unique challenges in determining the extent of operational control and, consequently, the accounting of associated waste events.

Case	Description	Example
Asset Leasing	Organizations that lease assets should determine whether they have operational control over that assets and, if so, include the associated waste events in its accounting.	A company leasing a fleet of vehicles would account for waste generated in maintaining these vehicles if it's responsible for their upkeep.
Activity Outsourcing	Organizations that outsource any activities to third-party providers should determine if they have control over such operations, and if so, include the associated waste events in their accounting.	If a company outsources its manufacturing process, but oversees and directs how this process is managed, the waste generated would be included in its waste accounting.
Franchises	For organizations that operate franchises, the degree of control they have over the franchisees' operations will determine which events should be included in their accounting.	A fast-food chain with operational control over its franchisees would include waste generated from packaging and food preparation in each franchise location.