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

A manufacturer publishes a report showing carbon emissions, water use and waste volumes for the year, and compares them with targets. Which of the following best describes the main purpose of this report?

The report's main purpose is to give stakeholders information on the organisation's environmental impact and to show accountability against targets. Sustainability reporting discloses non-financial performance such as emissions, water and waste, which financial statements alone do not provide, and it supports transparency and stakeholder decisions.

  1. ATo satisfy the requirements of International Financial Reporting Standards on the statement of cash flows
  2. BTo give stakeholders information on the organisation's environmental impact and accountability for itCorrect
  3. CTo calculate the tax payable on environmental activities

Explanation

Sustainability or environmental reporting discloses non-financial impacts so stakeholders can assess performance and hold the organisation accountable. It is not part of cash flow reporting under IFRS, and it does not compute tax liabilities.

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