UK S2·Decision guide·Reporting boundaries
An asset manager should separate the reporting entity from the client assets it manages, then define a controlled total-AUM denominator. UK SRS S2 B61 requires absolute gross financed emissions by Scope, the AUM included for each Scope, the percentage of total AUM covered, explanations of excluded asset types and AUM, and the allocation methodology.
Helps you decideHow to define total AUM and financed-emissions coverage while controlling products, mandates, data periods, estimates and client claims.
Reviewed 10 Aug 2026
17 min
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UK S2·Decision guide·Reporting boundaries
An insurer should assess climate resilience across both underwriting and investment portfolios, but it should not merge their emissions metrics. UK SRS S2 B63-B63A require financed emissions, gross exposure, coverage, classification and methodology for the insurer's loans and investments.
Helps you decideHow to connect two portfolios in the resilience assessment while keeping financed emissions, insurance-associated emissions and other metrics distinct.
Reviewed 10 Aug 2026
15 min
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UK S2·Decision guide·Reporting boundaries
UK SRS S2 still requires visibility over Scope 3 categories and, when Category 15 is included, the Category 15 total and the financed-emissions subtotal. Paragraph 29A permits an entity to limit Category 15 to financed emissions attributed to loans, investments, undrawn commitments and AUM, and to exclude emissions attributable to derivatives.
Helps you decideWhether to measure a wider Category 15 population or apply the permitted limitation to financed emissions, and how to explain that boundary.
Reviewed 10 Aug 2026
13 min
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UK S2·Decision guide·Reporting boundaries
UK SRS S1 requires sustainability-related financial disclosures to cover the same reporting entity as the related financial statements. UK SRS S2 then requires the entity to measure and explain its GHG emissions using the GHG Protocol Corporate Standard unless a jurisdictional authority or exchange requires another method.
Helps you decideHow each legal entity, facility, investee, lease and value-chain category is treated in the reporting entity and in Scope 1, Scope 2 or Scope 3.
Reviewed 10 Aug 2026
12 min
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UK S1·Decision guide·Reporting boundaries
UK SRS S1 starts with the same reporting entity as the related financial statements. Where those statements are consolidated, the parent and its subsidiaries form the reporting entity.
Helps you decideWhich legal entities and relationships are inside the reporting entity, which sit outside consolidation but inside the risk/opportunity assessment, and how each metric perimeter is explained and recon
Reviewed 10 Aug 2026
14 min
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EU VS·Decision guide·Reporting boundaries
C1 should let a reader understand what the undertaking offers, where it operates, which relationship categories enable the business model and how sustainability-related strategy connects to those facts. It is not a request for a complete supplier or customer list.
Helps you decideWhich aspects of the business model are significant enough to describe, and at what level of aggregation?
Reviewed 10 Aug 2026
12 min
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EU VS·Comparison·Reporting boundaries
The 2026 EU Voluntary Standard is not a wholly new architecture: it is based on the VSME standard endorsed by Commission Recommendation (EU) 2025/1710 and retains the Basic B1–B11 and Comprehensive C1–C9 modules. The main changes are its legal form and role, the wider intended population up to 1,000 employees, a statutory value-chain cap defined through a separate Annex II, specific reliefs for undertakings with 10 employees or fewer, alignment with the revised ESRS and targeted datapoint changes.
Helps you decideWhich source is current, what changed in architecture and datapoints, and how to transition without losing evidence or overstating legal status.
Reviewed 11 Aug 2026
11 min
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EU VS·Decision guide·Reporting boundaries
B8-B10 use employees - individuals in an employment relationship with the undertaking - as the core population. B8 reports employees in headcount or FTE by temporary/permanent contract, gender and country of employment contract when the undertaking operates in more than one country.
Helps you decideWho counts as an employee, which denominator applies, how country rules are handled and whether publication needs privacy controls.
Reviewed 11 Aug 2026
11 min
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EU VS·Decision guide·Reporting boundaries
B11 is triggered by confirmed legal outcomes in the reporting period: the undertaking reports the number of convictions and the total amount of fines incurred for violations of anti-corruption and anti-bribery laws. Allegations, whistleblowing reports, internal findings and open investigations are not themselves B11 convictions or fines.
Helps you decideWhether an event is a qualifying conviction or fine, in which period and boundary, and how it is aggregated and worded.
Reviewed 11 Aug 2026
11 min
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EU VS·Decision guide·Reporting boundaries
B1 establishes who is reporting, on what basis and for which organisational perimeter; B2 then states whether the undertaking has specific sustainability practices, policies, future initiatives being implemented and targets. The two disclosures should not be merged into a promotional profile.
Helps you decideWhat belongs in the company profile, and which maturity label is supported for each sustainability item.
Reviewed 11 Aug 2026
12 min
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EU VS·Decision guide·Reporting boundaries
B4-B7 do not share one universal applicability test. B4 covers own-operation pollutant emissions that the undertaking must report to authorities under EU or national law, or voluntarily reports under an environmental management system.
Helps you decideWhich disclosure applies, at which locations, using which source records and units.
Reviewed 11 Aug 2026
10 min
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EU VS·Decision guide·Reporting boundaries
The 2026 EU Voluntary Sustainability Reporting Standard is established by Commission Delegated Regulation (EU) 2026/1560 and is designed to help undertakings outside mandatory sustainability reporting provide proportionate, standardised information to business counterparties, banks and investors and improve their own management. It retains a Basic Module (B1–B11) and a Comprehensive Module (C1–C9), with the Basic Module required before the Comprehensive Module.
Helps you decideWhether to use the Standard, which module to select, what boundary and reporting channel to adopt, and how to respond to value-chain information requests.
Reviewed 11 Aug 2026
12 min
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EU VS·Decision guide·Reporting boundaries
The clearest eligible user is an undertaking that is not subject to mandatory sustainability reporting under Articles 19a or 29a and that does not exceed an average of 1,000 employees in the preceding financial year. Annex I expressly includes self-employed persons, non-incorporated undertakings and listed micro-undertakings.
Helps you decideWhether the Standard is an appropriate reporting basis, at which entity or group level, and whether value-chain protections apply.
Reviewed 11 Aug 2026
11 min
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EU VS·Decision guide·Reporting boundaries
Prepare the report as a controlled reporting project, not as a questionnaire-filling exercise. First identify the users, requests and intended publication channel; confirm that the Voluntary Standard is an appropriate basis; select Option A (Basic Module only) or Option B (Basic and Comprehensive Modules); and build a disclosure-level applicability matrix.
Helps you decideWhich users and requests the report will serve, whether Option A or Option B is appropriate, and what controlled evidence is required before release.
Reviewed 10 Aug 2026
13 min
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EU VS·Decision guide·Reporting boundaries
The value chain cap follows purpose and legal role, not the label of the requester or the datapoint alone. A bank or customer can be subject to the cap when it is a CSRD reporting undertaking and seeks information from a protected undertaking for its sustainability reporting.
Helps you decideWhich requester/purpose combinations fall within the statutory cap and which require separate legal or commercial analysis.
Reviewed 10 Aug 2026
10 min
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EU VS·Decision guide·Reporting boundaries
A company is a protected undertaking only if the specific responding undertaking is in the value chain of a CSRD reporting undertaking and does not exceed an average of 1,000 employees during the preceding financial year on its balance sheet date. The status should be documented for the correct legal entity through a dated self-declaration supported by the employee calculation, accounts or payroll evidence, value-chain relationship and reporting period.
Helps you decideWhether the respondent meets both the employee and value-chain criteria, and which Annex II employee band applies.
Reviewed 10 Aug 2026
10 min
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EU VS·Decision guide·Reporting boundaries
The value chain cap is a purpose-specific upper limit, not a general ban on ESG questions and not a duty for suppliers to report. A request is potentially within the cap only where a CSRD reporting undertaking seeks information for its sustainability reporting, the respondent is a protected undertaking in its value chain, the datapoint is listed in Annex II for the respondent's employee band, and the information is necessary.
Helps you decideWhether each request line is within the Annex II ceiling, above it, or outside the cap because the purpose or parties differ.
Reviewed 10 Aug 2026
11 min
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ESRS·Explainer·Reporting boundaries
A non-EU group should not begin with ESRS-40a. It should first map every possible EU reporting route: direct reporting by an EU subsidiary or issuer under Articles 19a or 29a, a consolidated subsidiary exemption where all conditions are met, and the separate third-country reporting route under Articles 40a to 40d.
Helps you decideESRS for Non-EU Groups and ESRS-40a: Scope, Exemptions and Emerging Requirements
Reviewed 11 Aug 2026
16 min
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ESRS·Comparison·Reporting boundaries
CSRD and ESRS are connected but not interchangeable. CSRD is Directive (EU) 2022/2464, which amended the EU Accounting Directive to create sustainability-reporting, assurance and governance obligations.
Helps you decideSeparate the legal scope and transposition analysis from the reporting-standard implementation analysis.
Reviewed 10 Aug 2026
10 min
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ESRS·Decision guide·Reporting boundaries
An ESRS boundary is not one perimeter. Start with the same reporting undertaking used for the financial statements, classify the activities and recognised shares that form own operations, extend the analysis to material impacts, risks and opportunities connected through the upstream and downstream value chain, and then apply any topic- or metric-specific boundary rule.
Helps you decideHow should each entity, activity, asset or relationship be classified for the materiality assessment, narrative disclosures and individual metrics?
Reviewed 11 Aug 2026
17 min
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ESRS·Decision guide·Reporting boundaries
ESRS are the reporting standards used to prepare the sustainability statement required by the EU Accounting Directive, as amended by the CSRD and Omnibus I. They do not decide legal scope on their own.
Helps you decideDetermine the legal gateway, applicable ESRS edition, reporting boundary, material matters and first implementation sequence.
Reviewed 10 Aug 2026
13 min
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ESRS·Decision guide·Reporting boundaries
For financial years beginning on or after 1 January 2027, the main Omnibus I scope at EU Directive level covers an undertaking at individual level, or a group at consolidated level, only where it exceeds both EUR 450 million net turnover and an average of 1,000 employees during the financial year. There is no separate balance-sheet-total threshold.
Helps you decideDetermine whether individual, consolidated, issuer or third-country reporting applies for a specified financial year and jurisdiction.
Reviewed 10 Aug 2026
12 min
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EU VS·Toolkit·Reporting boundaries
One file and five guides. The workbook holds the C6–C9 and framework-comparison controls in editable form — and the five Knowledge Hub guides from the same package cover sector exposure and related revenue, the gender diversity ratio, the human rights disclosures, and how the standard compares with ESRS and with GRI.
Helps you decideWhich package files and related guides belong to this toolkit?
Reviewed 11 Aug 2026
3 min
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UAE·Explainer·Reporting boundaries
30 May 2026 was the end of the default one-year Article 18 period for Sources subject to the Decree-Law to adjust their status in accordance with the law and implementing resolutions. It should not be described as a universal first emissions-report filing deadline for every UAE business.
Helps you decideWhich date is legally relevant: entry into force, status adjustment, designation, reporting period or submission deadline.
Reviewed 11 Aug 2026
7 min
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UAE·Explainer·Reporting boundaries
A UAE climate-law source register should be a controlled obligation map, not merely a folder of PDFs. Each record should identify the legal source, issuing authority, authoritative language, status, effective date, scope, designation trigger, method or form, reporting period, deadline, portal or contact, required evidence, owner, reviewer and update trigger.
Helps you decideHow to create one controlled register that links legal sources to operational requirements, owners, deadlines, evidence and update triggers.
Reviewed 11 Aug 2026
10 min
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UAE·Decision guide·Reporting boundaries
Start with the legal entity, office and authority facts, not with financed emissions. Screen whether the entity or any facility has been determined under Article 6 or falls within the separate carbon-register regime.
Helps you decideWhat constitutes the minimum legally ready office inventory, and which additional data modules are justified by an authority, framework, materiality assessment or requester.
Reviewed 10 Aug 2026
11 min
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UAE·Decision guide·Reporting boundaries
Build the inventory from the asset and contract level, then aggregate it to the legal reporting output. For every building, record the legal owner, operator, lease or management arrangement, meters, common areas, tenant spaces, district-cooling contract, renewable instruments, refrigerant equipment and water or heat risks.
Helps you decideWhich building activities belong in the entity or facility inventory, which require allocation, and which sit in a separate tenant, landlord or value-chain record.
Reviewed 10 Aug 2026
11 min
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UAE·Decision guide·Reporting boundaries
Yes. The federal UAE Climate Law expressly reaches emission Sources in free zones, so an entity should not assume that DIFC, ADGM or another free-zone licence creates an exemption. The practical reporting conclusion still depends on the facts: which UAE legal entity is the Source; whether it operates or controls a physical emitting facility; which emirate and local scheme are involved; whether the Source has been determined under Article 6; whether the 0.5 million tCO2e registry test or another threshold applies; and which authority, portal, method and deadline govern.
Helps you decideExplain the express free-zone reach without making a blanket filing conclusion.
Reviewed 11 Aug 2026
12 min
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UAE·Explainer·Reporting boundaries
The Resolution does not provide a single unambiguous answer for every corporate structure. It defines an “entity of huge carbon emissions” as an entity with annual emissions in the State at or above 0.5 million tCO2e, and Article 3 applies the test to Scope 1 and Scope 2.
Helps you decideWhich emissions perimeter should be tested against the threshold, what alternative views should be prepared and which questions require written authority or UAE legal confirmation.
Reviewed 10 Aug 2026
10 min
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UAE·Decision guide·Reporting boundaries
A foreign parent does not remove a UAE branch, facility or activity from the Climate Law merely because the group inventory is prepared overseas. Applicability turns on the UAE Source, local designation and competent-authority instruction.
Helps you decideWhich UAE unit or Source is designated and whether the foreign parent’s inventory can be reused without changing the required local conclusion.
Reviewed 10 Aug 2026
15 min
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