Which of the following reporting practices by an investee company is most likely a red...

Non-disclosure of ESG data due to "commercial sensitivity" (Option B) is a red flag because:

It suggests potential greenwashing or ESG risks hidden from investors.

Regulatory frameworks (e.g., EU CSRD, SEC climate disclosure rules) require transparency.

Option A (Cost constraints) is a valid challenge but does not necessarily indicate poor governance.

Option C (CEO incentive plan disclosure) is important, but not directly an ESG red flag.