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Why should organizations consider reporting on sustainability? Select all options that apply.
Correct Answer: A,B,D
Organizations should report on sustainability for several reasons, includingtransparency, stakeholder expectations, and competitive advantage. Below is the evaluation of each option: * A. True- Reporting on sustainabilitydemonstrates transparency and accountability, allowing companies to disclose theirenvironmental, social, and governance (ESG) impacts. * B. True-Stakeholders, including investors, customers, and regulators,increasingly demand sustainability reportingto assess the long-term viability of a company. * C. False- While sustainability reporting may contribute tolong-term financial gains, it doesnot guarantee immediate financial benefits. * D. True- Companies withstrong sustainability performanceoften enjoyenhanced brand value and competitive advantage, attracting investors and customers who prefer sustainable businesses. Why Sustainability Reporting MattersBenefit Impact on Organization Transparency & Accountability Builds trust with investors, regulators, and the public Stakeholder Expectations Meets regulatory and customer expectations for ESG disclosures Brand & Competitive Advantage Companies with strong ESG performance are more attractive to investors Regulatory Compliance Helps meet CSRD and ESRS disclosure obligations * CSRD & ESRS Guidance (2024)- Key Sustainability Reporting Benefits. * EU Platform on Sustainable Finance Report (2025)- Stakeholder Expectations & Competitive Advantage. Official References:
