It’s time for tax to shine
Businesses have begun to accelerateaction on ESG.
This is the time for tax to truly showcase the value it can bring to help support ESG ambitions.
Tax will be central to how organisations execute the ESG agenda.
Governments around the world are increasingly using tax policy to drive sustainable behaviour, through both incentives ('carrots') and environmental taxes and levies ('sticks'). And tax itself is among an organisation’s most visible ESG metrics: it’s a clear measure of an organisation's financial contribution to the communities in which it operates and a key attribute of how committed an organisation is to its sustainability ambitions. That makes tax a fundamental part of a business’s ESG journey, story and reputation.
With responsibility for tax, you’ll want to be at the heart of board-level ESG discussions and deeply embedded in your organisation’s environmental, social and governance programmes. Fail to engage, and you risk being left behind – internally, and by your competitors.
This is your time. Our research reveals that only 27% of tax functions are fully embedded in their organisation’s ESG strategy*. Being at the centre of your organisation’s ESG agenda will allow you to get ahead of the curve and add real value to your organisation.
Making your supply chain sustainable
Tax transparency
People
Governance
Decarbonisation
Supply chain sustainability – adding value to the supply chain transformation journey
Tax transparency – conveying your contribution to the societies you operate in
Governance – making tax governance fit for purpose in the ESG landscape
People – supporting efforts to engage the workforce in the ESG agenda
Decarbonisation – playing a lead role in your organisation’s transition to Net Zero
This guide looks at each of these in more detail. So read on to find out what you and your team should be focusing your attention on this coming year.
*Source: KPMG survey in March 2023 – of 500 UK tax leaders
