Fundamentals of Sustainability Accounting (FSA) Credential Level 1 Practice Exam

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Which of the following is a key component of a sustainability audit?

Market research analysis

Evaluation against defined sustainability criteria

A sustainability audit fundamentally involves evaluating an organization’s practices and impacts against established sustainability criteria. This assessment ensures that practices adhere to environmental, social, and governance requirements and standards. By using defined sustainability criteria, organizations can identify gaps in their current practices, assess compliance with regulations, and determine opportunities for improvement towards sustainable development goals.

This focus on criteria allows for a comprehensive review of both quantitative and qualitative aspects of sustainability, helping organizations not only to track progress over time but also to enhance transparency and accountability in their sustainable practices. The other options, while potentially relevant in other contexts, do not capture the essence and purpose of a sustainability audit as effectively as the evaluation against defined sustainability criteria does.

Employee performance reviews

Cost-cutting measures

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