Insights and resources to assist in shaping the path of your tax ESG journey
ESG is now a chief measure of corporate behavior, with tax playing a key part due to its linkages to environmental, societal, and governance benefits. Tax departments are being challenged to adjust tax strategies and affairs, and to ramp up reporting processes to address transparency demands, demonstrate commitment to a sustainable approach to tax, and take advantage of green tax incentives.
In recent years we have witnessed a sea change in the corporate world, reevaluating the balance of purpose and profit through the lens of sustainability and corporate responsibility. Across industries, companies are taking a hard look at the effects of their people, their customers, their investors, and society in general to better meet sustainability and transparency objectives.
There are various phases to mark your tax and ESG path. Your tax journey requires:
1
Developing and documenting a tax strategy and formulating an operating model
2
Deploying reporting and measurement targets and controls
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Reviewing, reassessing, and executing on tax ESG risks and opportunities
Tax & ESG resources
When it comes to ESG, tax is both a driver of sustainability and a key measure of it. Explore the role of tax in a company's overall ESG initiatives. Learn how to utilize the role of tax to enhance trust, mitigate risk, and unlock new value as your organization builds a sustainable future. Tax and ESG: From Risk to opportunity
A growing number of multinational enterprises are responding to stakeholder calls for increased tax transparency by voluntarily disclosing information about their tax strategy, governance, and global tax payments. KPMG can provide guidance, insights, and tech-enabled Tax ESG services to help develop a data-informed approach as you begin this journey.
Due to the ever-growing attention on the impacts of climate change and energy consumption, it is crucial to understand the broad environmental impacts of your business and have a plan for meeting global decarbonization and renewable energy targets, as well as stakeholder expectations. The Tax function can deliver significant value to your organization’s ESG strategy. It is critical to identify ways to structure, fund, and comply with your operating, reporting, and compliance obligations to help realize these ESG ambitions.
Most countries offer financial incentive programs designed to stimulate activities such as research and development, investment spend, job creation, and sustainability efforts. In order to generate and monetize these benefits, it is important for your organization to identify, understand, and prioritize the appropriate incentives given your financial and strategic goals. KPMG insights and Tax ESG services can help you to design and implement an effective incentives strategy given your business’s needs.
The supply chain brings to life the ethical and sustainable vision of a business. Supply chains and procurement are only as resilient as their weakest link. KPMG Tax ESG connected service offerings and digitally enabled solutions can help assess your supply chain, identify risks in your supply chain (e.g., transfer pricing, trade and customs, and indirect tax issues), embed required governance, and responsibly capture the value created with your ESG efforts.
A recent KPMG human rights survey illuminates multinational corporations’ efforts in addressing the issue of forced labor.
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KPMG Tax Transparency Services
Whether your organization follows a path of greater tax transparency or not, it is important to make that decision in a strategic and informed way. KPMG tech-enabled Tax ESG services can help our clients develop a data-informed approach as they begin this journey.
KPMG Tax Transparency Services - Impact Services
Impact Services can help your company throughout the entire reporting process, from pulling the data to producing a final report, all while helping you navigate this ever-evolving landscape at the same time.
Transfer Pricing Considerations for ESG-Related Intangible Assets
In this article, the authors examine the transfer pricing issues that companies should take into account in their environmental, social, and governance-related tax planning.
Assessing the Impact of the EU's CBAM on U.S. Businesses
Carbon Border Adjustment Mechanism (CBAM) reforms could significantly impact global exporters throughout the supply chain. Learn more about how U.S. businesses must begin to prepare climate risk management strategies.
Intercompany Fees for Internal Carbon Pricing: The Next Frontier?
In this article, the authors explain how companies are measuring internal carbon pricing (ICP) and suggest how transfer pricing practitioners can support ICP and the associated allocations of intercompany carbon fees. | February 13, 2023 - Tax Notes International
Section 45Q Credit for Carbon Oxide Sequestration
Summary of Credit Provisions in the Inflation Reduction Act
December 2022
Clean Energy Tax Incentives for Tax-Exempt and Governmental Entities
Many tax-exempt organizations and certain government entities may now benefit from the clean energy tax incentives of the Inflation Reduction Act, enacted into law on August 16, 2022.
Service
Tax ESG Services
Unlock new value as your organization builds a sustainable future
Insight
Tax and ESG: From Risk to Opportunity
A practical guide to enhancing value from tax sustainability and transparency
Insight
Be ready for disruption - tax insights
Tax insights and analysis to help organizations respond with speed and confidence
Insight
October 26, 2023 | Workforce mobility through an ESG lens
Learn how ESG is fundamentally changing organizations policies, procedures, and considerations around their people.
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