Deloitte New Zealand recently participated in in the inaugural Deloitte Sustainability & Climate (S&C) Learning Week (September 26-30), a global initiative to increase the knowledge and skills of our 415,000 people around the world. As part of this week of learning, Deloitte New Zealand facilitated a discussion session focussed on Environment, Social and Governance (ESG) tax related issues that are relevant to New Zealand businesses. In this article we share some examples of the ways in which S&C issues intersect with tax and the important role that tax professionals can play as businesses transform their organisations and find new sustainable solutions.
One key theme that came out of these discussions was that compared other countries tax administrators (including the ATO), Inland Revenue are much more reluctant to use tax policy to influence behaviour on key S&C areas. Instead, CFOs are typically responsibility for embedding S&C transformation into their organisations. Deloitte have just published the 2022 CFO Sustainability Snapshot Survey, in collaboration with the Sustainable Business Council and Toitū Tahua: Centre for Sustainable Finance. This year’s survey report noted that education, connection, and communication are essential for progressing on the journey, but the key is aiming for progress, not perfection.
So, what is the missing link between S&C and Tax issues? Deloitte believes that collaboration between tax professionals, CFOs and Inland Revenue would be a good place to start. So, put S&C on your next meeting agenda with your Deloitte Tax Advisor.