Practice question · Multiple choice
ESG reports CO₂ per unit of REVENUE rather than total emissions. What does that choice of denominator allow?
Hints
- Imagine emissions up 10% and revenue up 30%. What does the ratio do?
- Ask which number the physical problem depends on.
Show the answer
D. A firm whose absolute emissions rise can still report improvement
Why
Intensity metrics are legitimate for comparison and misleading as progress. The ratio can fall every year while the absolute total climbs, which is why both are now reported.
Practise Corporate Social Responsibility
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