In the cocoa sourcing example, which factor discusses normalization of market initiatives and notes that this factor is not applicable due to potential downside risk outweighing upside opportunities?

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Normalization of market initiatives is about aligning how market-based sustainability efforts are applied across the cocoa supply chain. In this example, the assessment finds that pursuing standardized market initiatives isn’t worthwhile because the potential downsides—such as higher costs, added complexity, and reduced flexibility for smallholders—outweigh the upside. That kind of risk-reward judgment fits with Opportunities for Innovation, which focuses on exploring new ways to create value and address sustainability challenges when traditional market norms may be too risky or limiting. It’s about looking for inventive approaches to market mechanisms that could unlock benefits without being dragged down by the drawbacks of standardization. The other choices don’t capture this evaluation: Direct Financial Impact centers on immediate financial effects, Regulatory Drivers on policy influences, and Industry Norms on typical practices rather than a strategic trade-off between standardization and innovation.