Finance for a sustainable future
How Tax can support transformation
With potentially trillions of dollars at stake, in many organizations, Tax is likely a comparatively untapped partner to Finance when it comes to sustainability efforts. Explore the incentives for Tax and Finance to fund, build, and report on sustainability together across the enterprise.
Involving Tax in sustainability-driven projects can help:
Fund sustainability initiatives
Tax can identify funding that could help finance a company’s clean energy transition and other sustainability initiatives.
Increase return on sustainability investments
Considering and managing direct, indirect, property and excise taxes may increase the return on sustainability-related investments.
Comply with laws and regulations
Compliance with laws and regulations has special relevancy to Tax because of the evolving push for tax- and environmental-related mandatory disclosure.
Show community impact in reporting
Tax is often the largest consumer of data in an organization and may be able to help demonstrate the effects of an organization's positive sustainability efforts across diverse communities.
Highlight sustainability commitments in reporting
Tax reporting regulations in certain jurisdictions will require many companies to disclose more on tax and the business. This may provide opportunities to show a company’s commitment to sustainability.
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The three stages of tax-sustainability integration
The evolution of a company’s ability to integrate Tax into sustainability work may progress in stages rather than all at once. As each organization plots its own transition, it can be useful to recognize milestones: which levels of achievement represent fundamental survival, which ones correspond to an initiative to drive ahead, and which ones have the potential to help an organization thrive against the competition.
Start today: Steps toward a sustainable future
You can take action today by aligning your Tax, Finance, and other internal teams on how to tackle the topic of sustainability together. Businesses can help accelerate operations transformation by using the capital market transitions they’re already managing. An example may be carbon trading markets. Tax governance and transparency can work to improve governance, access global data, and deliver a robust tax transparency response. This includes understanding the tax aspects of all emerging sustainability reporting standards, agreeing on a strategy and plan with key stakeholders and more. Explore the steps in our full report.
