Sustainability Language

Climate & Greenhouse Gas Emissions

GHG consolidation approaches

GHG consolidation approaches determine which operations and emissions an organisation includes according to equity share, financial control or operational control.

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Definition

GHG consolidation approaches are the methods used to set an organisational greenhouse-gas accounting boundary by attributing emissions according to equity share, financial control or operational control.

Overview

What it means in practice

An organisation may own part of an operation, control its finances or control how it operates. The selected consolidation approach determines which emissions are reported as direct and can materially change the inventory.

Why it matters

Two inventories can appear comparable while using different boundaries. Naming the approach, documenting changes and explaining joint operations makes reported emissions interpretable.

Common misconception

Operational control is not the same as ownership, and financial control is not simply the percentage of shares held. Each approach applies its own decision rules.

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