Sustainable Tax

If you aim to be a sustainable business, you must also embrace the importance of sustainable tax 

Sustainable entrepreneurship goes far beyond eco-friendly business activities. It is a set of values and norms that a company applies in its strategy and in which your tax policy also plays a decisive role.   

• Transition to a sustainable economy 

A company’s tax policies and practices can have a significant impact on society and the environment. Taxes are indeed an important source of income for a government to help develop budgetary policies and provide a macro-economic balance. This is how governments invest in crucial public services, while helping to realise the challenge of the coming years: the transition to a greener, more sustainable economy (tax on packaging, or CO2 emissions) with more diversity and inclusion and with attention to public health (tax on harmful or unhealthy products).  

•  Get your stakeholders on board 

Stakeholders are increasingly taking account of ESG factors in their decisions. A company’s tax policies and practices can affect investors seeking sustainable and responsible investment. Indeed, ESG strategies include the management of financial and non-financial risks, and tax risks are part of this. 

• How do you live up to all this? 

Walk the walk

Focus on social impact is steadily increasing. As a company, this forces you in a way to show that your (tax) behaviour is consistent with your broader ESG objectives.  

This leads to questions such as: How should you report on the sustainable tax strategy of the company in an ESG report? Which tax elements are reported? Which ones should you highlight?  How can you convey certain information so that your stakeholders genuinely believe in the authenticity/integrity of your policy? Don’t give greenwashing, greenhushing, or greenlighting a chance! 

Talk the talk

For the same reason, you want to go beyond reporting with your efforts to improve transparency about your tax strategy and also clearly articulate why your approach is appropriate. Therefore, avoiding aggressive tax avoidance can make or break a company’s credibility on sustainability.

• Our ESG experts are at your service 

Our team includes both tax advisors and ESG experts. They are happy to work with you on a sustainability journey and they are familiar with tax reporting 

It doesn't matter how far you are in this process. Together we help you tackle the sustainable challenges in the current ESG landscape. Regardless of whether you already have a balanced tax policy, or if you still need to work this out.  

Make sure to check out our ESG services page.