Purpose
Scaler now supports three GHG accounting methodologies in the GHG emissions tables: Operational control (the platform default), Financial control, and Equity control. This article explains how each one allocates emissions, how they differ, and where to switch between them.
These are alternative consolidation approaches under the GHG Protocol, not additive layers. A reporting entity selects one and applies it consistently across its inventory — the same underlying asset data is simply re-allocated under the boundary you choose. The key difference is what drives the allocation: who controls the activity (operational) versus how much of the asset you own (financial and equity).
Where to choose a methodology
A methodology selector sits at the top of the GHG emissions table, above the Scope tabs:
Data Collection Portal → Portfolio → GHG emissions
The same selector is available at company level:
Data Collection Portal → Company → Performance → GHG emissions
The selector offers Operational, Financial control, and Equity control.
Operational control remains the platform-wide default. Switching the selector only changes the GHG emissions table you are viewing. Reports and Analytics continue to use operational control.
Where the ownership figure comes from
Financial control and equity control are both driven by a single asset-level field: Percent of ownership. Operational control does not use it.
Data Collection Portal → select the asset → Reporting Data → Financial data → Percent of ownership
- Enter the value as a whole number — 100% is entered as
100. It represents the percentage of the asset owned by the reporting entity.
- Each entry is dated with a
Relevant sincevalue and kept as a history, so ownership can change over time; the figure relevant to the reporting year is the one applied.
- If
Percent of ownershipis not populated for an asset, financial and equity control cannot allocate that asset's emissions. Populate it for every asset you want reflected under these methodologies.
Operational control (default)
Under operational control, emissions are classified by who controls the activity, not by who owns the asset. Ownership percentage is not considered.
- Landlord-controlled consumption → Scope 1 (on-site fuels) and Scope 2 (purchased electricity, district heating and cooling)
- Tenant-controlled consumption → Scope 3 (Category 3 for fuel and energy, Category 13 for downstream leased assets, depending on configuration)
Control is determined by the selected Area type. Scaler-calculated banners appear in Scope 1, Scope 2, and Scope 3 Categories 3 and 5 where applicable. For the full operational-control logic, see Understanding Scope 1, Scope 2, and Scope 3 emissions in Scaler.
Financial control
Under financial control, emissions are consolidated into Scope 3, Investments (Category 15), regardless of the landlord/tenant split. Allocation uses a binary ownership threshold:
Percent of ownershipof 50% or more → 100% of the asset's emissions are counted
Percent of ownershipbelow 50% → 0% is counted
The Scope 1-versus-Scope 2 classification is still driven by resource type; what changes is how much of the asset is counted and where it lands. Under this view, no Scaler-calculated banner appears in Scope 1, 2, or the other Scope 3 categories — the calculated banner appears only in Category 15.
Equity control
Equity control also consolidates into Scope 3, Investments (Category 15), but instead of the all-or-nothing 50% threshold it weights each asset's emissions by its exact Percent of ownership value. An asset owned 60% contributes 60% of its emissions; an asset owned 20% contributes 20%.
How the three methodologies compare
Operational control | Financial control | Equity control | |
Allocation basis | Who controls the activity | Ownership threshold | Exact ownership share |
Ownership considered | No | Yes (≥50% → 100%, <50% → 0%) | Yes (proportional) |
Where emissions land | Scope 1, 2, and Scope 3 Cat 3/5/13 | Scope 3 Cat 15 (Investments) | Scope 3 Cat 15 (Investments) |
Calculated banner appears in | Scope 1, 2, 3 (Cat 3/5/13) | Scope 3 Cat 15 only | Scope 3 Cat 15 only |
Scope 1 vs 2 split | By resource type | By resource type | By resource type |
Worked example
Example: one asset, 100 tCO₂e, 60% owned
Consider a single asset emitting 100 tCO₂e in total — 70 tCO₂e from landlord-controlled activity and 30 tCO₂e from tenant-controlled activity — where the asset manager owns 60%.
- Operational control: 70 tCO₂e are classified as Scope 1 or Scope 2 (by resource type), and 30 tCO₂e as Scope 3. Ownership is ignored.
- Financial control: 60% is at or above the 50% threshold, so 100% of the emissions — all 100 tCO₂e — roll up into Scope 3 Category 15 at company level.
- Equity control: 60% of 100 tCO₂e = 60 tCO₂e roll up into Scope 3 Category 15.
If ownership were instead 40%: financial control would count 0 tCO₂e (below the threshold), while equity control would count 40 tCO₂e.
Company-level roll-up
At company level, calculated roll-up banners reflect the methodology you have selected. The split is persisted per methodology: data entered against equity control rolls up to the equity-control company banners only, and does not bleed into financial or operational. Switching the selector at company level shows the corresponding roll-up.
Important considerations
Financial and equity control are only as accurate as the Percent of ownership figure recorded against each asset. The field captures the percentage owned by the reporting entity; where the reporting entity is an asset manager, this may differ from an end investor's equity share, so confirm the value reflects the ownership you intend to report.
- Financial and equity control are currently available in the GHG emissions performance tables only (Portfolio and Company). They are not yet applied in Reports or Analytics, which continue to use operational control.
- Operational control remains the basis for everything else on the platform.