The consolidation approach describes which parts of a company are included in the balance sheet. In accordance with the GHG Protocol, a distinction is made between three different approaches:
| Consolidation approach | Description |
| Operational control | Accounting for 100% of all emissions from companies over which operational control exists. |
| Financial control | Accounting for 100% of all emissions from companies over which financial control exists. |
| Equity share | Accounting for the emissions resulting from the activities of the individual companies with the share of its equity. |
In the Climate Hub, the consolidation approach can be selected in the Accounting module under Base data. It is possible for a higher-level location or business unit to use a different consolidation approach than the lower-level locations or units.
Important note:
The percentage shares within the company hierarchy are only taken into account in the consolidation approach. Conversely, this means that for the other two consolidation approaches, it must be ensured that all subordinate locations and business units are allocated 100% to the higher-level location.