Asset management companies

Hi all,

I would appreciate it if you could provide some insight into an issue related to asset management companies. The bank group I represent owns 60% of an asset management subsidiary (REIT), whose financed emissions from the buildings it manages amount to X tons of CO2. According to the criteria for subsidiaries (‘asset owners with asset management business that submit at the group level must include all third-party assets’), the group’s financed emissions will be calculated as either X tons of CO2 or 60% of X tons of CO2, taking into account the proportional shares of the subsidiary? Which is the right approach?

Thanking you a lot and in advance


Hi Vasso,

The GHG Protocol defines three consolidation approaches for setting organizational boundaries so it may depend on which you use. With the financial control approach, for example, the group would account for 100% of the subsidiary’s emissions (since it has 60% ownership) so in this case, the group would account for all X tons of CO2 from the subsidiary.

Thank you so much Howard.

Best regards