As discussed in Section 7.1, understanding a company’s consolidation approach and type of lease is important because these factors will determine whether GHG emissions from a leased asset are accounted for in Scope 1, Scope 2, or Scope 3. Correctly identifying these factors will prevent and avoid double counting.
Table 7-2 Leasing Arrangements2 and Boundaries (Lessee’s Perspective)
This table uses the terms “finance/capital lease” and “operating lease” as defined in the Scope 3 Standard.
Sometimes, a reporting company that leases an asset from another entity in an operating lease may be able to demonstrate that the reporting company (lessee) does not have operational control over the leased asset. In such a case, the reporting company may report GHG emissions from the leased asset in Scope 3 as long as the decision is disclosed and justified in the public report.