ESG Tax

Globally, governments are increasingly focused on achieving net-zero targets and fostering sustainable economies, with tax policies being a pivotal instrument to reach these objectives. Integrating the implications of these evolving tax measures into business strategies is becoming crucial.

KPMG’s Carbon Services offer specialized, cost-effective solutions to accurately quantify greenhouse gas (GHG) emissions, energy use, and other environmental indicators for compliance. We provide expert advice on climate policies and their business impacts, serving clients across Hong Kong SAR and the Chinese Mainland. We also offer assistance to businesses to obtain incentives and subsidies that are aiming to encourage the undertaking activities which can help achieving good social means (e.g., subsidies for employers who hire underprivileged people).

KPMG’s Carbon Services experts possess strong engineering backgrounds and a deep understanding of ISO and other international standards and offer the following services:

• Standards-based GHG emissions and energy quantification and management, including ISO 14064-1 & GHG Protocol, ISO 14064-2, ISO 14067, ISO 50001, ISO 20400, and PAS2060
• Standards-based environmental indicator quantification and management, including life-cycle assessment (LCA), environmental management, water management, and biodiversity
• International climate policy advisory, including the EU Green Deal, EU Emissions Trading Scheme, EU CBAM, CSRD ESRS, EU CSDD/Germany Supply Chain Due Diligence Act, EU Batteries Regulations, and the US IRA

The client was one of the biggest new energy technology companies in China and was looking to respond to requests from their downstream customers to provide carbon footprint data for their photovoltaic module product. 

Based on the internationally recognised standard ISO 14067 (carbon footprint of products) and relevant category rules, KPMG Carbon Services conducted a lifecycle assessment to systemically record the entire lifecycle of the client’s product and analyse the greenhouse gas emissions generated across that lifecycle. Based on the findings of the LCA, KPMG produced a carbon footprint analysis report.

As a result of KPMG’s report, the client was able to meet their own customers’ requirements for carbon footprint data and supply chain transparency, in addition to identifying optimisation potential and levers for carbon emissions reduction within the product.