Disclosure focus
It also asks for the details needed to understand Scope 2 reporting within that boundary. The practical point is to make the reported Scope 2 information traceable to the parts of the business it covers, rather than leaving users to assume it applies across all operations or only selected sites.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Prepare
What to collect before drafting
Tick each field as the evidence lands. Owners are the teams that usually hold the source files.
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Boundary explanation
Group reporting / Sustainability reportingA plain explanation of which parts of the business are included in the reported emissions set, and any exclusions or changes in coverage, so readers can see how the reporting perimeter was drawn.
Evidence Group reporting memo, consolidation notes, boundary decisions paper, and any mapping between the reporting perimeter and the entities or operations included.
Watch for Boundary does not reconcile to the consolidation basis used in the source reporting pack, so entities or operations are included or excluded on the wrong scope or period basis.
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Group emissions total
Sustainability reporting / FinanceThe emissions figure for the whole consolidated group, using the same group structure and reporting period as the financial consolidation basis.
Evidence Consolidated emissions workbook, group reporting pack, and the final figure signed off against the consolidation perimeter and reporting period.
Watch for Consolidated-group total is taken from a different perimeter or period than the group accounts, so the figure does not reconcile to the source consolidation set.
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Market-based electricity context
Energy / Sustainability reportingThe explanation needed to show how electricity emissions are treated when contractual arrangements are used, including the basis applied and the related context for the reported figure.
Evidence Energy procurement records, contractual instrument register, supplier statements, and the calculation file showing how the market-based approach was applied.
Watch for Contractual instruments are not matched to the electricity consumption dataset, so the market-based figure is built on the wrong contracts or an incomplete instrument set.
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Grid electricity emissions
Energy / Sustainability reportingThe emissions figure calculated from the standard grid-average approach for purchased electricity, using the relevant consumption data and the location basis applied for the reporting period.
Evidence Utility bills, meter data, site consumption schedule, and the calculation workbook used for the grid-average electricity emissions result.
Watch for Location-based electricity emissions are calculated from a different consumption set or period than the utility data, so the total does not reconcile to the meter or bill source.
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Other investee emissions
Investment reporting / Sustainability reportingThe emissions attributed to investees other than those already captured elsewhere in the reporting set, expressed in tonnes of CO2e and based on the chosen investee coverage.
Evidence Investee inventory, ownership or influence mapping, underlying emissions data from investees, and the calculation file supporting the attributed total.
Watch for A subset of investees is omitted or the investee category is defined differently from the ownership or influence register, so the reported tonnes exclude part of the intended population.
Before you start
- Have you fixed which parts of the group sit inside the reporting boundary, and which emissions sit outside it?
- For the group-wide emissions figure, is everyone using the same consolidation basis and the same reporting period cut-off?
- Can you trace the boundary split and the emissions numbers back to source records or working papers before you draft?
- For electricity and other purchased energy, have you chosen whether to present the grid-average view, the supplier/contract view, or both?
- If you are using contract-backed energy information, have you checked what definition your team is applying so the figures are built on the same basis throughout?
How to prepare it
Request the data
Request the emissions boundary and Scope 2 detail pack
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
Can you provide the boundary note and the supporting emissions figures needed to explain which parts of the group are included, how the electricity-related emissions are treated, and what other investee emissions are in scope for the reporting period?
Use your organisation’s own terms first, then map them to the reporting labels. For example, if you talk about the group perimeter, energy reporting, portfolio holdings, or market-based electricity, keep those internal terms in the request and only translate them at the end for reporting review. This is a possible LRA training template; adapt this to your organisation and check the official source before sign-off.
Weak request
Please provide the IFRS S2 boundary disaggregation and Scope 2 details for the disclosure.
Why it fails: This uses framework language only, so the owner has to guess what internal records are needed. It does not say which systems, figures, or explanatory notes to pull, and it gives no clue about the organisation’s own perimeter, electricity, or investee terminology.
Better request
Please send the group perimeter note, the consolidated emissions figure, the electricity accounting context, the location-based electricity emissions number, and any other investee emissions for [period], with source file, assumptions, and reviewer. Use your internal terms first, then we will map them for reporting review.
Formal email template
Subject: Request for boundary note and emissions detail pack for [period]\n\nHi [name/team],\n\nPlease could you share the data and supporting notes for the emissions boundary and electricity-related emissions section for [period]. We need the following in your own reporting terms, with enough detail to map into the sustainability report later:\n\n- a short explanation of what sits inside the reporting perimeter and what sits outside it\n- the emissions figure for the consolidated group, with the source and any consolidation basis used\n- the context for any electricity contracts, certificates, tariffs, or other instruments used in the electricity emissions view\n- the location-based electricity emissions figure, including the source file or system\n- any emissions data for other investee holdings, with the amount in tCO2e and the basis used\n\nPlease include the source file name, reporting period, owner, and any assumptions or exclusions. A simple table is fine. This is a possible LRA training template; adapt this to your organisation and check the official source before sign-off.\n\nThanks,\n[preparer name]
Short Teams / Slack version
Hi [name/team] — could you send over the boundary note plus the emissions figures for [period]? We need the group perimeter explanation, the consolidated group figure, the electricity contracts/context, the location-based electricity number, and any other investee emissions (tCO2e), with source file and assumptions. A table is fine. Please use your own internal terms and we’ll map them for reporting. Thanks.
Industry examples
Manufacturing
Context. A multi-site group with central energy reporting and a separate consolidation workbook for subsidiaries.
Adapted request. Please share the group perimeter note for [period], the consolidated emissions figure from the consolidation workbook, the electricity contract context for any site tariffs or certificates, the location-based electricity emissions total by site, and any emissions from minority holdings or joint ventures, with source references and assumptions.
Example response. Returned as a table by site and entity, with a short note on which plants are inside the group perimeter, the consolidation basis, the electricity tariff/certificate context, the location-based electricity total, and a separate line for joint venture emissions in tCO2e.
Asset management / investment
Context. A firm that tracks portfolio holdings, investee emissions, and electricity data through an investment reporting pack.
Adapted request. Please provide the portfolio boundary note for [period], the consolidated group emissions figure, the context for any electricity contracts used at the firm level, the location-based electricity emissions figure for the firm’s offices, and the emissions data for other investee holdings in tCO2e, with the source pack and assumptions.
Example response. Returned as a portfolio and entity schedule showing which holdings are included, the firm-level consolidation basis, office electricity emissions on a location basis, and a separate investee emissions line in tCO2e with source pack references.
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Set out how the reporting boundary was drawn, including which parts of the business and which holdings were brought into the calculation, and explain the basis used for each emissions measure.
Context note
Explain what each figure is intended to show: the group total on the chosen boundary, the electricity-related result under the local-grid approach, the contract-adjusted view, and any emissions linked to investments or other holdings.
Fluctuation statement
If any measure moved materially, describe whether the change came from real operational shifts, changes in the reporting boundary, or the use of different electricity-accounting inputs.
Content index entry
s2-29-a-iv-v GHG boundary disaggregation and Scope 2 details — [location / page] / [notes]Download Centre
Preparation tools & forms
Download preparation tools for s2-29-a-iv-v with free verified email access for 24 hours. Source-report links remain public.
Check
For each claim, check the evidence
We split the reported figure between the entities we control in our reporting group and the holdings we keep outside that group, so the reader can see each part separately.
Risk The split may be unclear, inconsistent with the consolidation basis, or include/exclude holdings incorrectly.
Evidence to check ['Group boundary paper showing which entities are in the reporting group and which are outside it', 'Working papers reconciling the split to the final reported totals', 'Entity list or ownership schedule used to classify each holding', 'Review notes showing the boundary decision was checked before publication']
We kept a short boundary note explaining how we decided what sits inside the reported group and what sits outside it.
Risk The boundary explanation may be too vague to support the split, or may not match the numbers reported.
Evidence to check ['Boundary narrative or methodology note used for the disclosure', 'Cross-reference from the note to the calculation file', 'Approval trail showing the note was reviewed alongside the figures', 'Version history confirming the final wording matches the final numbers']
We calculated the figure for the group we report on using the same source files and cut-off date across the whole set of operations.
Risk Different sites or periods may have been treated differently, creating an uneven or incomplete coverage basis.
Evidence to check ['Data collection instructions and reporting timetable', 'Source extracts from all included operations', 'Consolidation or coverage checklist showing completeness', 'Exception log for any late, missing or estimated inputs']
We separately captured the emissions linked to holdings we do not include in the main reporting group, so they are not mixed into the group total.
Risk Outside holdings may have been double-counted, omitted, or wrongly folded into the main total.
Evidence to check ['Schedule of excluded holdings and their reported emissions', 'Reconciliation showing no overlap with the group total', 'Ownership or control evidence supporting the classification', 'Reviewer sign-off on the separation of the two buckets']
For the electricity-related part of the figure, we kept both the local-grid view and the instrument-backed view in the working papers, even where only one view is shown in the final table.
Risk The supporting basis for the electricity figure may be incomplete, or the wrong basis may have been used in the disclosure.
Evidence to check ['Calculation file showing both electricity views where applicable', 'Source data for grid factors and any instrument records used in the calculation', 'Method note explaining how the electricity figure was prepared', 'Internal review confirming the disclosed basis matches the underlying workings']
We held the contractual records and related support needed to explain the electricity figure, and we checked that they were current and traceable before release.
Risk The supporting records may be stale, incomplete, or not traceable to the reported number.
Evidence to check ['Register of contractual records used in the calculation', 'Copies of contracts, certificates, or other supporting documents', 'Traceability check from each record to the final figure', 'Pre-publication review showing the records were current for the reporting period']
Evidence pack to prepare
Common reporting gaps
- Figures are stated without the supporting narrative, or narrative without figures.
- Scope is inconsistent between the text and the numbers.
- The reporting boundary is left undefined.
- Material changes since the previous period are not disclosed.
- Estimates and measured values are not distinguished.
- Source records for the figures are not identified.
Where drafts go wrong
Mistakes to avoid and where judgement is needed
The left column is what preparers get wrong while collecting; the right column is where you will have to make and explain a judgement.
Mistakes to avoid
- Wrong ownerThe request goes to the sustainability team alone, so finance, energy, and investment staff never confirm the figures from their own records.
- Framework language used too earlyPeople ask for the data using disclosure labels instead of the organisation’s everyday terms, and the right source team does not recognise what is being requested.
- Boundary not fixedThe team starts collecting numbers before agreeing which parts of the group and which holdings sit inside the reporting perimeter, so the set of figures changes mid-stream.
- Wrong period basisOne source sends a calendar-year extract while another uses the reporting cut-off date, leaving the pack built on different timing bases.
- Counting basis mixedMarket-priced electricity figures are filed alongside grid-average values without separating them, so the location view and the contract-based view become blurred.
- Source labels stripped outDuring consolidation, the original tags from utility bills, broker statements, and investee schedules are removed, making it hard to trace where each number came from.
- Populations mergedEmissions from the main group, the contract-backed electricity view, and investee holdings are rolled into one table even though they need separate treatment.
- Evidence details missingThe file contains totals but not the supporting dates, document names, or version notes, so no one can tell which source each figure came from.
- No sign-off trailThe draft moves forward without named review and approval from the data owners, so there is no clear record that the inputs were checked before use.
Judgement needed
- Acquisition or disposal during the yearChoose a clear cut-off date for bringing in or removing emissions from bought or sold operations, then explain whether the figures reflect the position at period end or a time-weighted view.
- Different country reporting rules inside the groupWhere local reporting practices differ, use one group-wide approach for the boundary note and say how any country-level differences were aligned or translated.
- Entities close to the boundaryFor joint ventures, associates, managed assets or other borderline holdings, state the inclusion rule you used and explain why those emissions sit inside or outside the group view.
- Market contracts versus grid-average electricityIf electricity is backed by contracts in some places but not others, describe which sites use contract-backed treatment and which rely on the local grid mix, with the reason for the split.
- Measured data versus estimatesWhen actual readings are missing, set out where estimates were used, how they were derived, and whether later true-up data will change the reported split.
- Different timing bases across data sourcesIf some emissions are captured on a calendar-year basis and others on a different operational cycle, explain the conversion or alignment method used before grouping the numbers.
- Rounding and small residualsState the rounding rule applied to each subtotal and the total, and note any small differences that arise so readers can reconcile the parts to the whole.
- Privacy limits on small-population disclosureIf a very small site, team or country would make individuals identifiable, aggregate the figures to a safer level and say that the grouping was done for privacy reasons.
- Investee emissions with partial or mixed dataFor emissions from other holdings where coverage is incomplete, disclose the basis for combining reported and estimated amounts and make clear the share that is directly supported by source data.
Examples
How it reads on the page
Synthetic, written by LRA — not from a company report, not text from any standard.
We describe the reporting perimeter used for our climate metrics by showing which entities sit inside our group reporting boundary and which holdings are left outside it. For this example, our consolidated group covers 100,000 tCO2e of Scope 2 emissions on a location-based view and 92,000 tCO2e on a market-based view, with the gap reflecting our use of electricity contracts and certificates.
- Our share of emissions from investees that we account for outside the group boundary is 18,000 tCO2e, shown separately so readers can see the effect of those holdings on the wider footprint.
- In this illustration, the market-based figure is lower than the location-based figure because contractual electricity arrangements reduce the amount we report under the market view.
This example shows how to explain the reporting boundary, the group total, the two ways of viewing purchased electricity emissions, and emissions from holdings outside the consolidation boundary.
We set out the scope of our climate reporting by explaining which operations are included in our group figures and which investments are kept outside that perimeter. For this example, our consolidated group records 54,000 tCO2e using the local-grid method and 49,500 tCO2e using the contract-adjusted method, with the difference arising from electricity supply agreements.
- The emissions linked to investees that are not brought into the group total amount to 6,500 tCO2e, presented separately to show the wider exposure from those interests.
- This split helps readers compare the physical electricity footprint with the figure that reflects our contractual electricity position.
This example shows the same disclosure points in a different sector, using a different set of internally consistent figures and wording.
Quality ladder
- Basic
I report 12,400 tCO2e from other investments.
- Better
I report 12,400 tCO2e from other investments, split from our wider group total of 98,700 tCO2e, and I use a market-based view for electricity with a location-based figure of 41,200 tCO2e.
- Best
I report 12,400 tCO2e from other investments within our 98,700 tCO2e group total, and for electricity I show 36,500 tCO2e on a market-based basis alongside 41,200 tCO2e on a grid-average basis for the year ended 31 December 2025, with the gap mainly reflecting renewable power contracts.
Check your understanding
Scenarios to work through
A group prepares its climate note on a consolidated basis, but one subsidiary is held for sale and is excluded from the group totals used elsewhere in the report. The team is unsure whether the boundary note should explain that exclusion and how it affects the emissions figures shown.
A preparer has both a supplier-backed electricity certificate programme and a separate utility tariff arrangement. They have a market-based Scope 2 figure ready, but the working papers do not yet explain what instruments sit behind it or how they affect the result.
A company reports a market-based electricity number for its offices and warehouses, but the sustainability team only has a single combined electricity total from the utility bills. They are unsure whether they also need a figure based on the grid mix where the sites are located.
An investment holding company has a small portfolio of associates and joint ventures. Its climate team has calculated 18,400 tCO2e from those other investees, but the draft note only says the amount is included in the total and does not separate it out.
Real reports
How 3 companies report it
Examples of full and partial reporting practice. These are evidence-led reviews, not exact disclosure templates to copy.
Hang Lung Properties Limited
Partial
Iberdrola, S.A.
Partial
Abu Dhabi Commercial Bank (ADCB)
Partial| Field | Hang Lung Properties Limited | Iberdrola, S.A. | Abu Dhabi Commercial Bank (ADCB) |
|---|---|---|---|
| Boundary explanation | Not found | Partial | Partial |
| Group emissions total | Not found | Not found | Partial |
| Market-based electricity context | Not found | Not found | Not found |
| Grid electricity emissions | Partial | Not found | Not found |
| Other investee emissions | Not found | Not found | Partial |
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Advice, not assurance
Framework references
Relevant IFRS / ISSB requirements and related disclosures
IFRS / ISSB
s2-29-a-iv-v
within IFRS S2: Climate-related Disclosures
Guides that settle this question
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FAQ
Questions this page answers
The page says to prepare five datapoints: a boundary explanation, group emissions total, market-based electricity context, grid electricity emissions, and other investee emissions. Use those as the starting checklist before you draft anything.
Use it as a working sequence for collecting the required inputs, checking the boundary, and then turning the information into a draft. The page is set up to help you move from raw data to a disclosure-ready narrative.
The page flags boundary explanation as one of the datapoints to prepare, so you should be ready to explain the scope used for the disclosure. Keep the explanation aligned to the data you are reporting and the evidence you can show.
The page is designed for sustainability/ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the people who can source, explain, and evidence the datapoints. The workbook and evidence pack are there to help you assign and track that work.
The page includes an evidence pack with five items for assurance readiness. Use it to assemble the supporting material behind the boundary explanation, emissions figures, and any context you include.
The page says there are six assurance claims to verify, each with a claim, risk, and evidence angle. Use them as a checklist to test whether your draft is supported and whether the evidence pack is complete.
The page lists common reporting gaps and mistakes so you can spot weak points before you finalise the disclosure. It is useful for checking whether your boundary, emissions data, and supporting narrative line up.
The Download Centre includes a Prep & Assurance workbook in .xlsx format, which is intended to help you organise the preparation and assurance work. Use it alongside the page’s draft-output section to turn the inputs into a first draft.
The Download Centre includes a printable Library Card in .pdf format, which is a quick reference for the page content. It is useful if you want a compact checklist while you are gathering data or reviewing a draft.
It includes synthetic illustrative example disclosures, including a quantitative table where relevant. Treat them as examples of how to present the information, not as real company data.
The draft-output section gives visualisation ideas, narrative starters, and a content-index line. Use those prompts to shape the wording and structure of your first draft once the data is assembled.
The page says ESRS E1 (Climate Change) is the closest correspondence, so the data may be reusable across frameworks. It does not say the requirements are identical, so you should still check the other framework’s own disclosure needs.
More questions this page can help with