Domain E · Area E-CA1 · Metric architecture, methodologies and performance parameters

E.2Design metric boundaries, units and calculation methodologies

Working Draft version 1.1

Purpose and scope

This unit covers the capability to define and document how a sustainability metric is measured or calculated. It includes organisational, operational, value-chain and metric-specific boundaries; units and conversions; formulas and calculation sequence; source and factor hierarchies; allocation and elimination rules; treatment of missing, zero, negative and duplicate values; estimates; rounding; controls; testing; approval and reproducibility.

Applied competency statement

Can design, document and govern metric boundaries, units, formulas, calculation methods, factors, allocation rules and testing requirements so that reported results are reproducible, internally consistent and appropriate to the reporting basis.

Boundary and escalation

This unit governs reporting calculation methodologies and does not qualify the practitioner to perform regulated measurement, engineering, scientific, actuarial, valuation, accounting or other specialist work. Authoritative methods and specialist judgements must be approved by the appropriate owner, and the reporting practitioner must not alter them to achieve a preferred result.

Key quality risks

Applying the wrong organisational or operational boundary; inconsistent units or conversion factors; formulas that are not reproducible; undocumented allocation or elimination; double counting; mixing gross and net values; improper treatment of missing, zero or negative values; factors selected for convenience; hidden manual overrides; rounding or normalisation that changes the result materially; and specialist methods implemented without competent approval or testing.

Required knowledge · 6

E.2-K01

Understands organisational, operational, geographic, value-chain, product, topic, activity, metric and temporal boundaries and their relationship to the reporting perimeter in C.3.

Knowledge Type: Boundary architecture · Normative Weight: Core

E.2-K02

Understands physical, monetary, count, percentage, rate, intensity and index units, dimensional consistency, conversion factors, exchange rates, normalisation and significant figures.

Knowledge Type: Units and conversions · Normative Weight: Core

E.2-K03

Understands formulas, calculation sequence, numerator and denominator treatment, allocation, apportionment, elimination, gross and net presentation, hierarchy of methods and reproducibility.

Knowledge Type: Calculation design · Normative Weight: Core

E.2-K04

Understands authoritative and specialist methodologies, primary and secondary data, factor selection, factor vintage, geography, technology and quality considerations.

Knowledge Type: Source and factor hierarchy · Normative Weight: Core

E.2-K05

Understands treatment of missing, zero, negative, out-of-range, duplicate and late values, manual overrides, rounding, cut-off, error handling, plausibility checks and calculation-model testing.

Knowledge Type: Exceptions and controls · Normative Weight: Core

E.2-K06

Understands methodology ownership, approval, effective date, version, change impact, evidence retention and when engineering, scientific, finance, legal or other specialist review is required.

Knowledge Type: Governance and specialist boundary · Normative Weight: Core

Applied skills · 5

E.2-S01

Translate a metric definition and reporting requirement into a complete calculation and boundary specification.

Skill Type: Core applied capability · Observable Output or Result: Methodology design draft

E.2-S02

Define boundaries, units, formulas, calculation order, source and factor hierarchy, allocation, elimination, estimate and exception rules.

Skill Type: Method design · Observable Output or Result: Metric methodology and boundary specification

E.2-S03

Build or specify a controlled calculation model and clear instructions that reproduce the approved method.

Skill Type: Calculation implementation · Observable Output or Result: Controlled calculation model and calculation instructions

E.2-S04

Test dimensional consistency, formula logic, boundary completeness, factor application, edge cases, manual overrides and expected outputs.

Skill Type: Testing and validation · Observable Output or Result: Methodology test and validation record

E.2-S05

Obtain methodology-owner approval, issue effective versions and assess and communicate downstream effects of changes.

Skill Type: Approval and change control · Observable Output or Result: Methodology test, approval and change record

Professional behaviours · 3

E.2-B01

Does not alter boundaries, factors, formulas or allocation rules to improve reported performance or avoid inconvenient data.

Behaviour Type: Methodological integrity · Non-compensable Requirement: No

E.2-B02

Documents the method, assumptions, factors, overrides and exceptions sufficiently for an independent reviewer to reproduce the result.

Behaviour Type: Reproducibility and transparency · Non-compensable Requirement: No

E.2-B03

Implements and challenges specialist methods within competence and escalates technical conclusions that require qualified ownership.

Behaviour Type: Specialist respect · Non-compensable Requirement: No

Typical tasks · 4

E.2-T01

Review the approved metric definition, reporting perimeter, authoritative method, source data and intended disclosure.

Primary Output Link: E.2-O01

E.2-T02

Document boundaries, units, formulas, factors, allocation, elimination, estimation, cut-off, rounding and exception rules.

Primary Output Link: E.2-O01

E.2-T03

Build or specify the calculation model and test formulas, edge cases, manual overrides, factor use and expected results.

Primary Output Link: E.2-O02

E.2-T04

Obtain specialist and accountable approval, issue the effective method and control changes to requests, data, comparatives and disclosures.

Primary Output Link: E.2-O03

Expected outputs · 3

E.2-O01

Metric methodology and boundary specification

Output Type: Professional work product

E.2-O02

Controlled calculation model and calculation instructions

Output Type: Professional work product

E.2-O03

Methodology test, approval and change record

Output Type: Professional work product

Proficiency indicators

Level 1 · Foundation

E.2-L1-01

Can apply and maintain an approved calculation method, complete specified boundary and factor fields and perform defined formula and unit checks.

Indicator Dimension: Task execution

E.2-L1-02

Can identify obvious boundary, unit, factor, formula or override issues and escalate specialist or methodology questions.

Indicator Dimension: Quality, judgement and accountability

Level 2 · Practitioner

E.2-L2-01

Can independently design or adapt a reporting calculation methodology for a moderately complex metric within approved authoritative and specialist parameters, implement the calculation model and perform structured testing and approval control.

Indicator Dimension: Task execution

E.2-L2-02

Can resolve routine allocation, factor, exception and reproducibility issues and explain method choices, limitations and change effects to owners and reviewers.

Indicator Dimension: Quality, judgement and accountability

Level 3 · Advanced Practitioner

E.2-L3-01

Can design or critically review methodology governance across complex groups, topic areas, reporting instruments and calculation systems.

Indicator Dimension: Method design and review

E.2-L3-02

Can challenge inconsistent or manipulated methods, resolve significant boundary and factor disputes and establish enterprise expectations for methodology testing, approval and change control.

Indicator Dimension: Leadership and governance

Illustrative evidence · 6

E.2-E01

Metric methodology and boundary specification with units, formulas, factors and exception rules.

Evidence Type: Work product

E.2-E02

Controlled calculation model and calculation instructions linked to source and output fields.

Evidence Type: Work product

E.2-E03

Methodology test, approval and change record including edge cases and review evidence.

Evidence Type: Work product

E.2-E04

Reperformance or reconciliation showing the result can be reproduced from retained source data.

Evidence Type: Process evidence

E.2-E05

Documented subject-matter, engineering, finance, data, legal or quality review and the practitioner's response.

Evidence Type: Review evidence

E.2-E06

Observed explanation and defence of a methodology, boundary or factor decision.

Evidence Type: Observed performance

Assessment · 3

E.2-A-L1

Calculation-method exercise, formula review and situational judgement

Correct application; unit and boundary consistency; factor use; recognition of override and specialist issues.

E.2-A-L2

Integrated methodology-design case and professional memorandum

Method completeness; reproducibility; boundary and factor judgement; edge-case testing; approval and change control.

E.2-A-L3

Complex methodology-governance case, portfolio and oral defence

Method and control design; specialist boundaries; challenge of manipulation; reproducibility; oral defence.

Relationships · 9

From	To	Type	Rationale
B.4	E.2	Strong linkage	Climate and greenhouse-gas literacy supports the review of metric boundaries, units and calculation methodologies.
B.5	E.2	Strong linkage	Environmental literacy supports review of boundaries, units, methods, proxies and aggregation.
E.2	C.3	Boundary distinction	Metric-specific boundaries should be reconciled to the approved reporting perimeter.
E.2	E.1	Prerequisite	Calculation methods depend on a complete and approved metric definition.
E.2	E.6	Method, data and analytical linkage	Estimate and proxy rules may form part of or supplement the approved methodology.
E.2	E.7	Method, data and analytical linkage	Validation procedures test the implementation and results of the approved methodology.
E.2	G.8	Disclosure, claims and publication linkage	Method and boundary consistency supports reconciliation of metrics across disclosures and channels.
E.5	E.2	Method, data and analytical linkage	Aggregation, weighting, denominator and elimination rules derive from approved metric methodologies.
E.6	E.2	Method, data and analytical linkage	Estimate and proxy rules should be incorporated into or linked to the approved metric methodology.

Role profiles for this unit

Role	Target level	Relevance	Evidence expectation
Corporate Sustainability Reporting Practitioner	Practitioner	Required?	A case or work sample demonstrating independent performance, documented judgement and a reviewable professional output.
Sustainability Reporting Manager or Lead	Advanced Practitioner	Role-defining?	A complex case or verified portfolio, supplemented by oral or observed defence, demonstrating method design, challenge and governance capability.
Sustainability Reporting Adviser or Consultant	Advanced Practitioner	Role-defining?	A complex case or verified portfolio, supplemented by oral or observed defence, demonstrating method design, challenge and governance capability.
Sustainability Data, Systems and Controls Specialist	Advanced Practitioner	Role-defining?	A complex case or verified portfolio, supplemented by oral or observed defence, demonstrating method design, challenge and governance capability.
Assurance Readiness and Reporting Quality Specialist	Advanced Practitioner	Role-defining?	A complex case or verified portfolio, supplemented by oral or observed defence, demonstrating method design, challenge and governance capability.
Investor, Capital Markets and Ratings Disclosure Specialist	Practitioner	Required?	A case or work sample demonstrating independent performance, documented judgement and a reviewable professional output.