Which of the following is a primary benefit of sustainability accounting?

Sustainability accounting primarily aims to enhance transparency and accountability within organizations regarding their environmental, social, and governance (ESG) impacts. By systematically measuring, reporting, and analyzing sustainability metrics, entities provide stakeholders—such as investors, customers, and regulatory bodies—with a clear picture of how their operations affect the environment and society. This increased transparency helps build trust and fosters a culture of responsibility, as stakeholders are able to see how companies are managing their sustainability risks and opportunities.

While financial profits may eventually be positively impacted by sustainable practices, they are not guaranteed through sustainability accounting alone. Regulatory requirements can influence the need for sustainability reporting, but they are not eliminated through this practice. Lastly, focusing solely on employee safety neglects the broader context of sustainability, which encompasses more than just workplace safety; it includes environmental stewardship and social responsibility. Thus, the primary benefit of sustainability accounting is its role in promoting transparency and accountability in how organizations operate concerning sustainability issues.