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ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

A clothing retailer publishes a report showing its financial results alongside its environmental impact and social performance, so that stakeholders can judge performance on profit, people and planet. Which term best describes this approach to reporting?

Triple bottom line reporting is the correct term. It presents economic, social and environmental performance together, often described as profit, people and planet, so stakeholders can judge the organisation more broadly than through financial results alone.

  1. ATriple bottom line reportingCorrect
  2. BStatutory financial reporting only
  3. CManagement by objectives
  4. DZero-based budgeting

Explanation

Triple bottom line reporting measures performance across economic, social and environmental dimensions, often called profit, people and planet. Statutory financial reporting covers only financial results. Management by objectives and zero-based budgeting are management and budgeting techniques unrelated to sustainability reporting.

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