Part 2: Sustainability Reporting Background: (50 marks) There is an increasing demand and attention to the...

Transcribed Image Text:

Part 2: Sustainability Reporting Background: (50 marks) There is an increasing demand and attention to the issue of sustainability reporting around the world. While a group of people support the production of sustainability reporting, another group of people question the benefits associated with sustainability reporting. "There's no doubt that attention to material ESG issues can deliver better social, environmental, and financial outcomes for individual companies. They are very likely rewarded with lower costs of capital (as a result of being better managers of risk), and their focus on sustainability can improve margins and enhance brand value. That said, corporate sustainability efforts have not, in the aggregate, made much difference for society or the planet. In addition, the reporting itself suffers from some very real problems." (Pucker, 2021). Required: You are required to: 1. Discuss the nature and purposes of 'Sustainability Reporting'. 2. Explain the potential benefits and costs associated with the production of sustainability report. To support your arguments, you are required to use relevant accounting theories (e.g., agency theory, legitimacy theory, stakeholder theory, shareholder theory, etc). Your answers above should be presented in an essay format with the following suggested section: Introduction (approximately 100-150 words). Body, can be presented under some subheadings (approximately 900-1,000 words). Conclusion (approximately 100-150 words). Part 2: Sustainability Reporting Background: (50 marks) There is an increasing demand and attention to the issue of sustainability reporting around the world. While a group of people support the production of sustainability reporting, another group of people question the benefits associated with sustainability reporting. "There's no doubt that attention to material ESG issues can deliver better social, environmental, and financial outcomes for individual companies. They are very likely rewarded with lower costs of capital (as a result of being better managers of risk), and their focus on sustainability can improve margins and enhance brand value. That said, corporate sustainability efforts have not, in the aggregate, made much difference for society or the planet. In addition, the reporting itself suffers from some very real problems." (Pucker, 2021). Required: You are required to: 1. Discuss the nature and purposes of 'Sustainability Reporting'. 2. Explain the potential benefits and costs associated with the production of sustainability report. To support your arguments, you are required to use relevant accounting theories (e.g., agency theory, legitimacy theory, stakeholder theory, shareholder theory, etc). Your answers above should be presented in an essay format with the following suggested section: Introduction (approximately 100-150 words). Body, can be presented under some subheadings (approximately 900-1,000 words). Conclusion (approximately 100-150 words).

Answer rating: 100% (QA)

Introduction Sustainability reporting has gained significant traction in recent years due to increasing concerns about environmental social and governance ESG issues This essay will discuss the nature ... View the full answer