What is ESG Tax?

Tax is a strategic tool for promoting sustainable practices. From environmental taxes to tax transparency reports, ESG Tax helps you transform the impact of tax into a driving force for sustainability.

How does tax relate to ESG?

Environment

Taxes, benefits and incentives with direct environmental impact.
Social

Fair payment of taxes and measurement of tax footprint.
Governance

Adapting to international transparency and reporting requirements.

Tax policy is one of the most powerful instruments that governments can use to shape the behaviour of economic actors towards a more sustainable world.

Américo Coelho

Tax Partner

KPMG Portugal

CBAM: What it is and why you should pay attention

The Carbon Border Adjustment Mechanism (CBAM) is one of the European Union's most ambitious measures to halt carbon leakage and ensure a fair climate transition. With a direct impact on sectors that import goods into Europe (such as cement, aluminium or steel), the CBAM brings new reporting and emissions measurement obligations, as well as costs associated with the carbon footprint of products.

If your company imports goods into the EU or exports to this market, CBAM is already a reality with material implications for your business model.

What will change by 2034

The transitional phase has already started and the definitive regime takes effect in 2026.
Sectors where operators are required to file reports and buy CBAM certificates will be expanded gradually through to 2034.
The sectors covered should prepare for new costs, regulatory requirements and potential supply chain disruptions.

Understand the impact, check the key dates and prepare with confidence.

Download our full report and find out how KPMG can help.

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What can KPMG do for your organisation?

Monitor legislative changes in different jurisdictions
Measure impacts related to environmental taxes (e.g. CBAM, plastics)
Identify risks and opportunities in the value chain
Help maximise tax benefits and incentives
Develop tax governance policies aligned with ESG principles
Help collect and analyse tax data for sustainability reporting (e.g. GRI 207, Public CbCR)
Help prepare tax transparency reports for stakeholders and ESG rating agencies

What will change by 2034

Tax is becoming a central instrument in the transition to more circular and sustainable business models.

In this report, we take a clear and practical look at how taxes, charges and incentives are being used to promote more responsible behaviour and to drive the circular economy.