Operational Control Approach
The operational control approach is a GHG Protocol consolidation method where an organisation accounts for 100% of emissions from any operation over which it has the authority to introduce and implement operating policies, regardless of its ownership percentage.
What is Operational Control Approach?
The operational control approach is the most widely used consolidation method for corporate GHG inventories. It includes 100% of emissions from every facility, site, or operation where the reporting organisation has full authority to introduce and implement its own operating policies — including environmental and energy management policies.
The key test is operational authority, not ownership. A company that owns 60% of a factory but has full operational control reports 100% of that factory's emissions. Conversely, a company with a 50% ownership stake in a joint venture that is operated by the other partner reports 0% of the JV's Scope 1 and 2 emissions (though the JV's emissions may appear in Scope 3).
Operational control is preferred by most UK companies for several reasons. It reflects the emissions an organisation can actually influence through its management decisions — if you control the operations, you can change the heating system, switch the vehicle fleet, or improve the processes. It is straightforward to define — "do I run this facility?" is usually a clearer question than "do I have financial control?" It aligns with SECR requirements, which default to operational control. And it avoids the complexity of proportional allocation required under equity share.
Under operational control, a company's GHG inventory includes all emissions from: wholly owned and operated facilities; leased premises where the company controls operations (e.g., as tenant with control of energy purchasing and building management); operated joint ventures; and managed or operated assets (e.g., a property management company that operates buildings owned by others may include those buildings).
Emissions from facilities the organisation does not operate — even if it owns them — are excluded from Scope 1 and 2 but may appear under Scope 3. For example, a company that owns buildings managed by a third-party operator would not include those buildings' Scope 1 and 2 emissions in its own inventory but might report them as Scope 3 Category 13 (Downstream leased assets) or Category 15 (Investments).
Practical Examples
A facilities management company uses operational control and includes emissions from all 50 buildings it manages — even though it owns none of them — because it has authority over energy procurement, HVAC operation, and building management policies.
A manufacturing group operates 8 factories and has a 40% stake in a 9th factory operated by its JV partner. Under operational control, it reports 100% of emissions from the 8 it operates and 0% from the 9th.
A retailer leases all its store premises but has full operational control (choosing energy suppliers, managing refrigeration, controlling store operations), so it reports 100% of each store's Scope 1 and 2 emissions under operational control.
How Climatise Helps
Climatise defaults to the operational control approach and allows you to flag which sites you operate versus those managed by others. The platform consolidates emissions at 100% for operated sites and excludes non-operated sites, with the option to model the impact of including them for Scope 3 purposes.
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