Which document communicates an organization's economic, environmental, and social impacts?

Advance your understanding of sustainability accounting with the FSA Level 2 Exam. Practice with engaging quizzes and detailed explanations to enhance your learning experience. Prepare to excel!

The sustainability report is specifically designed to communicate an organization's economic, environmental, and social impacts. This type of report provides transparency regarding how a company operates in relation to its sustainability commitments and goals. It typically includes performance indicators, objectives, and progress reports on sustainability initiatives, showcasing the organization’s accountability to stakeholders regarding its impact on the environment, society, and its economic practices.

In contrast, while an annual report may include sections on sustainability, its primary focus is on the financial performance and operational results of the organization, which does not comprehensively cover environmental and social impacts. A corporate governance statement focuses on the management structures and governance policies of a company rather than detailed sustainability impacts. Lastly, a financial forecast is primarily concerned with predicting future financial performance based on historical data and trends, without addressing broader sustainability aspects.

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