Which of the following can be a benefit of sustainability reporting?

Improved stakeholder trust and engagement is a significant benefit of sustainability reporting. When organizations commit to transparency in their environmental, social, and governance (ESG) practices through sustainability reporting, they provide stakeholders—such as investors, customers, employees, and the community—with insight into their sustainability efforts and commitments. This fosters a sense of trust and credibility, as stakeholders are more likely to feel confident in the organization’s operations and long-term viability.

By openly communicating the impacts of their activities and strategies to enhance sustainability, organizations can engage with these stakeholders more effectively, leading to stronger relationships and potentially more substantial support for their initiatives. This kind of trust and engagement can also enhance a company's reputation, making it more favorable in the eyes of consumers and investors who prioritize sustainability, thereby positively impacting overall business performance.

Other options presented do not align as directly with the core benefits of sustainability reporting. For example, while reduced corporate taxes and lower operating costs may result from certain sustainability practices, they are not direct benefits of reporting itself. Increased employee turnover is contrary to the expected outcomes of strong sustainability practices, which typically aim to enhance employee satisfaction and retention.