Deloitte
Accounting Research Tool
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Chapter 2 — Identification of a Company’s Organizational Boundary

2.3 Control Approach

2.3 Control Approach

Under the control approach, a reporting company accounts for 100 percent of the GHG emissions from any operation that is under the reporting company’s control. Therefore, operations in which a reporting company owns an interest but over which it has no control are not included in the reporting company’s organizational boundary. In other words, a reporting company does not include GHG emissions from operations that it does not control, even if it owns a portion of the company. Under the equity share approach, by contrast, a portion of an operation’s GHG emissions could be included even if the reporting company does not control the operation.