Why does normalizing by revenue help in SASB metrics?

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Normalizing by revenue standardizes metrics to account for differences in company size. Absolute figures like emissions, energy use, or costs tend to be larger for bigger companies simply because they do more business. By expressing these metrics per unit of revenue, you remove the effect of scale and obtain a measure of intensity or efficiency that can be compared across companies of different sizes or across time as revenue changes. In SASB metrics, this helps you see how effectively a company converts revenue into environmental or social outcomes, rather than just how large the company is. This approach does not inherently eliminate all skew or variability, and it doesn’t automatically introduce bias; the right denominator depends on the metric, but normalizing by revenue is a common way to enable meaningful comparisons.