ISO 27002:2022 Lead Implementer Quiz 07 24Mar25 - Practice Quiz

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Question 1 of 30

GlobalTech Holdings, a multinational conglomerate, is implementing ISO 14064-1:2018 to standardize its greenhouse gas (GHG) accounting and reporting across its diverse portfolio of subsidiaries. The company\'s structure includes: Subsidiary A (100% owned and directly controlled by GlobalTech), Subsidiary B (50% jointly owned with operational control held by GlobalTech), Subsidiary C (40% jointly owned, but operational control resides with the other partner), and Subsidiary D (a franchise operation where GlobalTech provides brand guidelines but the franchisee independently manages operations).\n\nAs the Lead Implementer, you must advise GlobalTech on determining its organizational boundaries for GHG reporting, considering both the control approach and the equity share approach as defined in ISO 14064-1:2018. Which of the following approaches best reflects the correct application of these principles to GlobalTech\'s organizational structure for comprehensive GHG reporting?

GlobalTech should account for 100% of emissions from Subsidiaries A and B under the control approach and 40% of emissions from Subsidiary C under the equity share approach, excluding Subsidiary D entirely.

GlobalTech should account for 100% of emissions from Subsidiaries A, B, and C under the control approach, regardless of equity share, and include a proportional share of Subsidiary D's emissions based on brand licensing fees.

GlobalTech should account for emissions from all subsidiaries (A, B, C, and D) based on their respective revenue contributions to GlobalTech's consolidated financial statements, applying a weighted average across all operations.

GlobalTech should account for 100% of emissions from Subsidiary A under the control approach, 50% from Subsidiary B under the equity share approach, and exclude Subsidiaries C and D due to lack of direct operational or financial control.

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