ISO 27002:2022 Foundation Quiz 10 24Mar25 - Practice Quiz

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Question 1 of 30

GlobalTech Solutions, a multinational corporation, is expanding its operations into several new countries with diverse environmental regulations. The company aims to establish a unified greenhouse gas (GHG) accounting system compliant with ISO 14064-1:2018. GlobalTech exerts significant influence over the environmental policies and operational practices of its subsidiaries, even when its equity stake is less than 100%. Considering the varying local regulations and the need for consistent global reporting, which approach should GlobalTech prioritize for defining its organizational boundaries for GHG accounting to ensure comprehensive and accountable reporting under ISO 14064-1:2018?

Adopt the control approach, accounting for 100% of GHG emissions from operations where it has financial or operational control, regardless of equity share.

Utilize a hybrid approach, combining elements of both control and equity share based on the stringency of local environmental regulations in each country.

Apply the equity share approach, accounting for GHG emissions based on its percentage ownership in each subsidiary, ensuring alignment with financial reporting standards.

Implement a phased approach, starting with the equity share approach and transitioning to the control approach as local regulations become more standardized.

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