Equity share approach vs. control approach

Greenhouse Gas Protocol

Companies shall account for and report their consolidated GHG data according to either the equity share or control approach, as presented below.

If the reporting company wholly owns all its operations, its organizational boundary will be the same whichever approach is used. For companies with joint operations, the organizational boundary and the resulting emissions may differ depending on the approach used.

In both wholly owned and joint operations, the choice of approach may change how emissions are categorized when operational boundaries are set.

• Equity share approach: a company accounts for GHG emissions from operations according to its share of equity in the operation

• Control approach (financial/operational): a company accounts for 100% of the GHG emissions from operations over which it has (financial/operational) control

(source: GHGP Corporate Standard, p16)

Implementation by Carbon+Alt+Delete

Carbon+Alt+Delete facilitates both the equity share approach and control approach. It is the responsibility of the user to adjust the operational and organizational boundaries of the company in line with the selected approach, as well as the required activity data.

Control approach is assumed by default for any given setup. When using equity share approach and when applicable, the user is expected to apply ownership ratios themselves before entering data in inventory.