Carbon Accounting for Extended Organizational Boundaries

The parent company consolidates the greenhouse gas emissions within its organizational structure, for effective greenhouse gas management and reporting.

• Set Up Your Company Organizational Structure
  If your company is a conglomerate that has fully owned subsidiaries or largely independent business units, or has grown through mergers and acquisitions, you must account for emissions for the entire organization. This emissions data can be used to perform carbon accounting for your organization and your subsidiaries.
• Create Accounts for the Extended Organization
  If your company is a conglomerate that has fully owned subsidiaries or largely independent business units, or has grown through mergers and acquisitions, you must account for emissions for the entire organization. Create accounts for your parent company and all your subsidiaries and business units.
• Create an Internal Organizational Unit to Identify the Parent Company
  To consolidate emissions across your organization, create an internal organizational unit that identifies your parent account.
• Create Party-Role Relationships
  Create party-role relationships to define the role of each account in the org, such as parent-subsidiary or company-partner company.
• Create an Account Hierarchy
  Create an account-account relationship to represent a hierarchy between the parent company and all accounts in the org, such as parent-subsidiary, investor-investee, or company-franchisee.
• Allocate Emissions to a Parent Company
  As the parent company, you can allocate a portion of a partner’s or subsidiary’s emissions to your company. For example, if your company X has a subsidiary A and an external partner B, you can input percentage allocation that can be allocated from A to X and from B to X.
• How to Calculate Inventory for Emissions from Subsidiaries
  Net Zero Cloud consolidates the annual emissions and procurement activities across a company’s subsidiaries or joint ventures to calculate the total annual emissions inventory for the parent company in a two-level extended organization. As the parent company, you account for emissions for each entity in your organizational boundary separately and then roll them up to your company.
• Example: Consolidate Annual Emissions Inventory from Subsidiary Companies to Parent Company for Two-Level Organizational Hierarchy
  This example walks you through how to set up accounts for a parent company and its subsidiaries to consolidate annual emissions inventory for a two-level extended organization. The inventory is calculated in two stages. First, each subsidiary performs its own carbon accounting and calculates its greenhouse gas (GHG) emissions inventory. Then, the parent company calculates its GHG emissions, sets the percentage allocations and recalculates its inventory to consolidate emissions across its hierarchy.
• Example: Consolidate Annual Emissions Inventory for Multiple Levels of Hierarchy
  This example walks you through how to write custom code to consolidate annual emissions inventory for multilevel extended organizations. The inventory is calculated in two stages. First, each subsidiary performs its own carbon accounting and calculates its greenhouse gas (GHG) emissions inventory. Then, the parent company calculates its GHG emissions, sets the percentage allocations and recalculates its inventory to consolidate emissions across its hierarchy. Repeat these steps for all the levels in the hierarchy.