ESG Tax

Tax and the ESG agenda are inextricably linked

As a social issue, how much tax you pay is often viewed as a measure of your financial contribution to the communities in which you operate. However, the role of tax in your ESG journey is much broader than just your tax footprint. With the right business partnering in place, tax can be a key enabler across all your ESG workstreams.

KPMG in India can help you embed tax into your ESG strategy:

Our team of multidisciplinary experts is on hand to support you in identifying the tax opportunities to achieve your ESG ambitions. We’ll help you build trust in your ESG strategy with a sustainable tax approach across workstreams, including:

Decarbonisation

We can help you navigate the increasingly complex landscape of incentives, grants, and environmental taxes to optimise funding, manage costs and remain compliant, all supported by our global ESG tax database and network of tax specialists. Our team can also help you assess the tax implications of engaging carbon trading.

Sustainable Supply Chain

We can identify the tax risks and opportunities facing your business as you embark on supply chain transformation. Whether this be updating your transfer pricing policy for new value chains or a change in your Value Added Tax (VAT) position by shortening the supply chain, our connected global network means you will have the right specialists on hand to manage the tax interactions across your global supply chain.

Responsible tax

With a growing focus on ‘paying your fair share’, how does your tax strategy reflect your values? Our specialists can help you articulate and execute your responsible tax ambition and with stakeholders increasing their focus on tax transparency, we can help you access and interpret the data you need for compliant reporting.

Workforce of the Future

We can help you build ESG into your Employee Value Proposition and executive reward schemes, while ensuring you understand the tax implications for your organisation and your people.

Risk and governance

Governance is the pillar that underpins the ‘E’ and the ‘S’. Getting it right is key to evidencing that you can “walk the talk”. With increased scrutiny and shareholder action over businesses’ tax affairs, effective tax governance is rising to the top of boardroom agendas. We can help you design and implement robust risk management frameworks, harness data, and embrace new technology to transform your tax function.

Regulations like CBAM will have significant implications for Indian Exporters

CBAM stands for Carbon Border Adjustment Mechanism, a levy on imports of certain carbon-intensive goods to the EU. It will have a transformational impact on companies engaged in international trade of the foreseeable growing list of covered commodities codes.

CBAM is designed to function in parallel with the EU Emissions Trading Systems (ETS) which encourages high-emission industries in the EU to reduce emissions.
Mapping carbon will become an essential requirement for Indian companies
In the first phase, CBAM will cover sectors with high carbon emissions and high risk of carbon leakage. The scope is expected to extend to more sectors in the future.