ISO 27002:2022 Foundation Quiz 05 24Mar25 - Practice Quiz

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Question 1 of 30

GlobalTech Solutions, a multinational corporation headquartered in the United States, has made a significant investment in EcoForge Industries, a manufacturing plant located in a developing nation known for its lenient environmental regulations. GlobalTech owns 60% of EcoForge, giving them a majority equity stake. Furthermore, GlobalTech\'s senior management team directly oversees and dictates the operational policies of EcoForge, including production processes, waste management, and energy consumption strategies. This arrangement allows GlobalTech to implement its preferred operational standards, irrespective of local practices. However, due to specific legal and contractual stipulations within the host country, financial control of EcoForge technically resides with a local partner, although GlobalTech maintains substantial influence over financial decisions. In preparing its annual GHG inventory according to ISO 14064-1:2018, which approach should GlobalTech Solutions primarily use to account for the GHG emissions from EcoForge Industries, and why?

GlobalTech should account for 100% of EcoForge's GHG emissions because it exercises operational control over the facility, regardless of its equity share or the technical assignment of financial control to a local partner.

GlobalTech should account for 60% of EcoForge's GHG emissions, reflecting its equity share in the company, as the equity share approach takes precedence over the control approach in situations with complex ownership structures.

GlobalTech should account for 40% of EcoForge's GHG emissions, representing the portion of the company not owned by GlobalTech, as this reflects the emissions directly attributable to other stakeholders.

GlobalTech should account for a percentage of EcoForge's GHG emissions based on a weighted average of its equity share (60%) and its level of influence over financial decisions, creating a hybrid accounting method.

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