Prepare for the SASB Fundamentals of Sustainability Accounting Level II Test. Study with multiple choice questions, gaining hints and explanations. Enhance your sustainability reporting skills and ace your exam!

Multiple Choice

Which dimension uses energy consumption as a percentage of revenue to illustrate normalization?

Normalization of environmental metrics is about adjusting for company size so you can compare performance across different scales. Using energy consumption per revenue expresses energy intensity—the amount of energy used to generate a dollar of revenue. This type of metric directly reflects environmental impact and resource efficiency, and it sits in the Environment dimension. The other dimensions focus on people, relationships, and governance, not environmental intensity metrics, so they don’t typically use energy consumption relative to revenue.

Normalization of environmental metrics is about adjusting for company size so you can compare performance across different scales. Using energy consumption per revenue expresses energy intensity—the amount of energy used to generate a dollar of revenue. This type of metric directly reflects environmental impact and resource efficiency, and it sits in the Environment dimension. The other dimensions focus on people, relationships, and governance, not environmental intensity metrics, so they don’t typically use energy consumption relative to revenue.