Companies have been consistently investing in sustainability as a core pillar of their strategies and working to communicate their intentions clearly. However, one key metric has remained largely absent from conversations about ESG (environmental, social and governance) issues: taxes.
A company’s approach to taxation should not be viewed solely as a matter of compliance: in the context of ESG performance, taxes are becoming a powerful indicator of how a company sees its role in society and how committed it is to its purpose.
Taxes are often a company’s most significant contribution to society, as it is through them that governments can fund the provision of essential public services and public works. This makes taxes a critical element of the ‘S’ and ‘G’ in ESG, with possible repercussions for the ‘E’ as well.
45% of companies are committed to decarbonisation (partial or net zero).
81% consider tax incentives relevant or very relevant to the implementation of ESG practices.
75% do not publish tax information in their sustainability reports.
Via Pwc Brasil