What is ESG?
ESG (environmental, social, governance) is a term that covers environmental, social and governance issues. The concepts act as pillars that aim to help stakeholders create an understanding of how companies can control risks and opportunities related to these concepts.
Why is ESG Tax important?
A rapidly evolving global landscape is driving increased demands and pressures on businesses to implement sustainable initiatives that turn ESG into action. This shift is also an opportunity to help fulfil their purpose, achieve goals and position themselves for future growth.
Having robust tax policies and practicing good tax governance are critical steps when increasing transparency to showcase responsible tax practices. Being able to benchmark against standards and peers provides valuable insights and improves decision making.
As businesses take steps to decarbonise their business and supply chains, it is imperative they consider where rapidly changing tax regulations may impact strategic decisions, as while costs may increase, significant funding opportunities and tax incentives are being offered in the EU and around the world to support the green transition.
