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

A manufacturer decides to publish an annual sustainability report that sets out its environmental targets and progress against them. Which stakeholder group is this action most directly intended to satisfy?

The report mainly satisfies stakeholders such as investors, customers and pressure groups who want transparent information about environmental performance. Sustainability reporting is a voluntary disclosure responding to their demands, not a tool for competitors or a tax computation document.

  1. AStakeholders such as investors, customers and pressure groups who want transparent information on environmental performanceCorrect
  2. BCompetitors who wish to copy the company's production methods
  3. CTax authorities who require the report to calculate corporate income tax

Explanation

Sustainability reporting is a voluntary disclosure that responds to stakeholder demand for transparency about environmental and social performance. Competitors and tax authorities are not the intended audience, and the report is not used to compute income tax.

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