Exclude the joint ventures after choosing the financial control approach


We need some guidance regarding our system boundaries

We chose the financial control approach to define our system boundaries. Using this approach, we must consider all joint ventures. We have 3 joint ventures with 50% control, which we should include in the inventory, however, we do not have good communication about the information we require to carry out proper data collection. These three joint ventures are small and represent a minor share of the company. We would like to know if we could leave them out of the inventory. If we justify and argue the reason for leaving them behind, would it be accepted by the SBTi?

Thank you all!

Hi Martha,

Thanks for posting!

JVs would need to be included based on the chosen inventory consolidation approach. If they are not included in scope 1+2 (e.g., due to lack of operational control, if using that consolidation approach), they would then likely fall under scope 3 category 15. Coverage requirements would then depend on what asset class these investments would fall under (e.g., listed equity, private equity).


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