A sustainable forestry initiative wants to measure its environmental performance.

Which of the following is the best example of a Non-Financial Performance Indicator (NFPI) for this objective?

Answer options:

The total cost of purchasing new saplings.

The revenue generated from selling carbon credits.

The ratio of new trees planted to mature trees harvested.

The variance in the forestry maintenance budget.

How to approach this question

Look for the option that does NOT involve money (dollars, costs, revenues) but still measures performance.

Full Answer

C.The ratio of new trees planted to mature trees harvested.✓ Correct

Non-Financial Performance Indicators (NFPIs) measure performance in terms other than money. Options A, B, and D all involve costs, revenues, or budgets, making them financial indicators. Option C (ratio of trees planted to harvested) is a physical, non-financial measure of sustainability.

Common mistakes

Assuming anything related to 'sustainability' is automatically an NFPI, even if it's measured in dollars.

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