Like lessees, lessors have to consider their consolidation approach and type of lease to properly account for GHG emissions from leased assets. Correctly identifying these factors will prevent and avoid double counting. For more information about consolidation approaches, see Chapter 2. For more information about lease classifications (which companies are advised to determine in a manner consistent with their audited financial statements), see Section 7.1 and Deloitte’s Roadmap Leases.
Table 7-3 Leasing Arrangements4 and Boundaries (Lessor’s Perspective)
Sometimes, a reporting company that leases an asset to another entity in an operating lease may be able to demonstrate that the reporting company (lessor) does have operational control over the leased asset, especially when operational control is not perceived by the lessee. In such a case, the reporting company may report GHG emissions from fuel combustion in Scope 1 and those associated with the use of purchased electricity in Scope 2 as long as the decision is disclosed and justified in the public report.