A tax strategy for the road to net zero has been saved
A tax strategy for the road to net zero
Climate change is the defining issue of our time
Business leaders are increasing their focus on purpose, with ever greater attention to delivering against their Environmental, Social and Governance (ESG) goals. This places climate response and the road to net zero at the core of business strategy. Tax needs to be at the heart of boardroom decisions, with finance leaders contributing to strategy as their organisations, and the world, journey to a low-carbon future.
The road to net zero
Climate change is the defining issue of our time.
Government policies, customer, employee and consumer demands, investor pressure and technology are all converging to drive decarbonisation.
Against this backdrop, the role of business is shifting, as society is increasingly demanding that business acts as a force for good. Corporates will play a key role in responding to climate change. Numerous organisations have made public commitments to reduce greenhouse gas emissions.
Why this matters for tax teams
For many organisations, climate change will have a profound impact on business operations. As with any business transformation, there will be tax consequences as a result of business model and supply chain change.
Many of the policy levers used by governments on the road to net zero will be in the tax sphere, ranging from grants and incentives, to carbon taxes. In addition, policy makers are starting to consider whether tax and regulatory policy take account of climate commitments.
Tax teams need to be ready to respond and potentially contribute to the policy environment, ensure that tax is integrated into business decision making, and have the right skills and resources to react to the emerging business opportunities and challenges.
What are the six questions tax leaders need to consider?