ESG Tax Sustainability

Organizations must measure and provide insight into sustainability. How do you contribute to sustainability and how do you perform on environmental challenges? How do you deal with the working conditions, health and safety of your employees? And how do you manage your organization, looking at your rewards and tax strategy?

Three central factors used to measure sustainability and report on it

Environmental examines how a company contributes to sustainability and how it responds to environmental challenges, such as waste (recycling), greenhouse gases (emissions) and the production of, for example, plastic (production). This can include existing taxes that stimulate eco‑friendly behavior or are based on a ‘polluter pays’ principle.

What can you do as company? While it’s important to be in control of your tax risks and to take advantage of tax opportunities, it’s also important to ensure that you are compliant with current tax legislation and regulations on sustainability. Developments are rapidly taking place in the field of tax sustainability, not only at the national level but also at the European and even at the global level.

Social examines how an organization treats its employees, for example, working conditions, health and safety. What is corporate responsibility? Responsible tax is an extension of corporate responsibility: recognizing that tax is the entry-level price we pay for a civilized and caring society.

Tax as a corporate responsibility issue and organizations that pay their fair share of tax have grown in importance in recent years and are now considered priorities. An open and transparent dialog between companies, tax authorities, non-governmental organizations (NGOs) and consumers is the key to building trust. To stimulate this, an increasing number of tax benefits are available for organizations that pursue these social objectives.

Governance onderzoekt hoe een organisatie bestuurd wordt door onder andere te kijken naar de beloningen en de belastingstrategie. Transparant zijn over de belastingpositie van jouw organisatie creëert vertrouwen bij stakeholders. De startpunten daarbij zijn: structuur aanbrengen in rapportages, de verwachtingen van stakeholders adresseren en het helder uitleggen van jouw bijdrage als organisatie. Ons ESG Tax Sustainability-team kan jouw organisatie bijvoorbeeld assisteren door het uitvoeren van een zogeheten PACT-analyse (‘Purpose, Approach, Contribution and Tax’).