Which stakeholder is least likely to benefit from sustainability reporting?

The rationale behind the choice that competitors are least likely to benefit from sustainability reporting lies in the nature of the information shared in such reports and the competitive dynamics of the business environment.

Sustainability reporting serves primarily to disclose a company's environmental, social, and governance (ESG) performance, often aimed at building trust and transparency with stakeholders like employees, media, and investors. Employees benefit as they gain insights into their company's commitment to sustainability, which can influence their job satisfaction and engagement. Media outlets utilize sustainability reports to inform the public and hold companies accountable, shedding light on corporate social responsibility. Investors rely on these reports to gauge risks and opportunities related to sustainability, aiming to make informed decisions about their investments.

In contrast, competitors stand to gain little from the detailed disclosures found in sustainability reports. This type of reporting may potentially expose a company's strategies and practices that give them competitive advantages, which could benefit rivals by informing them of the market practices they need to match or surpass. Thus, while competitors may monitor sustainability trends, the direct advantages gained from sustainability reporting are significantly less pronounced compared to those experienced by other stakeholders.