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How Tax can help transition to a low-carbon future  

Start your journey to a better future by integrating your organisations’ global tax planning with the environmental sustainability strategies 

Why now?

There is a global climate emergency and companies are feeling pressure to act on climate change from many different stakeholder groups— from regulators to customers to employees. Societal and market forces have heightened the importance of a company’s environmental, social and governance (ESG) strategy, and business leaders are transforming their businesses to meet the moment —they are being held accountable to their commitments of becoming carbon neutral by 2050 or sooner.

As organizations embed climate considerations into their core business strategies, they are ingraining more sustainable practices into their operations and investing in new technologies to innovate on sustainability solutions by developing new, climate-friendly products or services.

A tax strategy for the road to net zero

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Drivers

Stakeholder sentiment, investor pressure, and consumer activism in the past few years set the stage for a significant ramp up in ESG initiatives, investments, and financing.

The Opportunity

Combatting climate change also presents opportunity to improve broader performance, and stakeholder satisfaction. You have a vital role to play in decision making and strategy in your companies’ climate transformation efforts. As you tackle sustainability, you are embarking on a journey of business transformation. While this transformation occurs, remaining agile and nimble to align your long-term global tax strategy with these initiatives is critical.

Now, with the impact of policy levers such as credits and incentives, new tax measures (such as energy and carbon taxes), regulatory and political uncertainty, and tax governance and disclosure requirements; Tax teams need to be ready to align their organizations’ long-term global tax strategy with these policy developments and their organisations’ business model changes.

Transitioning to a low-carbon future

Strategic Planning & Design

  • Global tax and incentive profile review
  • Align tax and business (operational and finance) strategy or Align tax and business with sustainability Strategy
  • Analyze tax planning and investment scenarios
  • Advise on credits and incentives planning for sustainable investments and projects
  • Analyze tax costs, risks and benefits (cash and financial statement)
  • Assess impact of global tax policy implications

 

Implementation and Value Creation

  • Execute on tax planning scenarios
  • Analysis, quantification of near-term cash benefits
  • Implement organizational structures to maintain benefits and manage risk
  • Implement global tax policies for sustaining tax benefits
  • Secure discretionary incentives

 

Governance, Measurement and Reporting

  • Maintain and monitor strategies
  • Implement tax compliance policies
  • Financial statement reporting
  • Transfer pricing
  • Tax governance/transparency reporting
  • Tax data management
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