Comprehensive and Detailed Explanation From Exact Extract of Documents:

The L5M5 study guide (p.182) states that sustainability reporting and the adoption of ESG

(Environmental, Social, Governance) principles can stimulate organisational change and innovation.

By measuring and reporting on sustainability, companies often seek new technologies, processes,

and supply models to improve performance and meet ESG commitments. Reporting is not

mandatory in all cases, so option B is incorrect. While sustainability may improve reputation and

sometimes costs, these are not the key focus of this question. CIPS guidance stresses that

sustainability reporting can drive innovation—procurement can encourage suppliers to develop new

sustainable practices, products, and approaches.

📖Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.182