Operational control is one of three consolidation approaches defined by the GHG Protocol for setting organisational boundaries. Under operational control, the reporting company accounts for 100% of the greenhouse gas emissions from operations over which it has the authority to introduce and implement operating policies.
The other two approaches are financial control (consolidating emissions from operations the company has the ability to direct financial and operating policies for) and equity share (consolidating emissions in proportion to the company's equity interest in each operation).
Why it matters
Choosing a consolidation approach is the first methodological decision in any GHG inventory. It defines what is in and out of the footprint and must be applied consistently across Scope 1 and Scope 2.
Operational control is the most practical default for SMEs because it aligns with how managers think about responsibility — if you can decide how a site is run, its emissions are yours. It is also the approach specified by most UK procurement frameworks, including PPN 006 Carbon Reduction Plans.
A practical example
A company occupies two offices: it owns one outright and leases the other on a full repairing and insuring basis where it pays the energy bills and decides on equipment. Under operational control, both offices are 100% in the inventory because the company sets the operating policies for both. Under equity share, only the owned office would be at 100% (the leased one would be 0% because the company has no equity in it).
We default to operational control for SME engagements. See where this fits in our process on the methodology page.