With Environmental, Social and Corporate Governance (ESG) getting more and more attention at board level, tax also becomes an increasingly important component in a company’s ESG strategy.
Companies are aware that the role of tax is evolving from the minimum standard of compliance to a broader discussion around a company’s global approach on tax and the overall economic contribution to society.
Also the growing importance of green taxation as a tool to limit the impact of a company’s activities on the environment will require companies to assess the environmental impact of their processes and (downstream and upstream) supply chain. Goal settings that are aligned with increasing global climate ambitions and translated into short term and long-term actions in the field of decarbonization, renewables, water-scarcity, circularity, energy efficiency and innovation, will guide companies to sustainable growth.
The monitoring of and the reporting on the progress made in achieving these goals will also be necessary to obtain the required private and public funding in order to make the transition to a more sustainable economy happen.
Our tax and legal experts are specialized in identifying ESG risks and opportunities resulting from upcoming changes in taxation and sustainable finance.
How we can help
KPMG tax and legal subject matter specialists can provide support in the following areas to help you develop and implement a sustainable tax and regulatory ESG Strategy:
- Assistance with developing a tax ESG strategy by mapping the existing (environmental) tax contribution of a company;
- Impact assessment of upcoming changes (e.g. Carbon Border Adjustment Mechanism, changes to the EU Energy Taxation Directive, Plastics Tax,…) and the possible (in)direct tax and customs aspects resulting from potential changes to the supply chain;
- Assistance with the (in)direct tax structuring and excise duties aspects of renewable energy projects (solar, wind (offshore and onshore), bio-mass,…) as well as other new innovative projects (CO2 capture and storage, decentral production of process/drinking water,…) making use of the available tax incentives at federal and regional level;
- Assistance with the (in)direct tax and excise duties aspects of sustainable energy sourcing (Power Purchase Agreements,…);
- Implementation of sustainable flexible reward schemes for employees (electric vehicles, e-bikes,…) and the impact of ESG on global mobility;
- (In)direct tax and excise duties aspects of new business models (e-roaming services for electric vehicles,…);
- Providing insights on upcoming tax and regulatory changes and initiatives on federal, EU (EU Green Deal,…) and global level;
- Understanding the various environmental levies and incentives (electricity, gas, water, waste,…) at federal and regional level.