I think you're reading it correctly, more or less. If it's not a multi-storey assembly building and if it is 1000mm from the boundary then it needs no special protection. If it is 999mm though, it will need to be class 0. Yes, it's only one millimetre but a line has to be drawn somewhere.
If there is no boundary fencing and if, perhaps, vegetation is growning next to the walls or, worse still, someone has thought it a good idea to fix a litter bin on the wall, then I think a risk assessment would tell you that the external face of the wall should be class 0 (and preferably incombustible), even if it is 1000mm or more.
If, on the other hand, it is only 500mm from the boundary but there is a six foot brick wall at the boundary then you might deem it safe to leave it untreated. There is room for manoeuvre here.
Stu