Political initiatives such as the EU Green Deal and the increasing focus on climate and responsible business objectives are influencing organisations in Switzerland as well. Now is the time to act and include the impact of environmental taxes, people/social aspects as well as governance (tax strategy, operations and transparency) in your business decisions.
The new ESG focus and increased use of environmental taxes will impact companies’ pricing and margins. A clear assessment of this impact will not only allow you to adapt your strategy but also to identify funding opportunities. Environmental taxes are usually not on the radar of the tax function. But the increasing number of tax audits in this respect will likely lead to the tax function becoming responsible for the management of these taxes. Same goes for the people – social and governance components. We help you turn your company’s tax function into an informed discussion partner for your management and other business units in charge of ESG.
As governments around the world increasingly using environmental taxes and carbon pricing to change the behavior of companies we must assess their impact to evaluate the strategies, risk and business model. In addition, to finance their transition toward a greener future companies can and should identify tax credits, incentives and funding's that there are eligible to.
Acting responsibly is no longer a choice – it's a business imperative. Governments, consumers, investors, employees, and society at large are demanding transparency from companies on how they address ESG issues and policies. The tax transparency reporting and strategy continues to evolve. Companies must define their approach to tax transparency and coordinate it with their broader sustainability strategy.
Environmental taxes are usually not on the radar of the tax function. But the increasing number of tax audits in this respect will likely lead to the tax function becoming responsible for the management of these taxes. Consequently, to tackle this obligation tax functions will have to insure that they have access to the required data. To insure proper reporting they must have in place: high quality data, clear processes and control.
When designing the company ESG strategy the tax function is usually not initially involved. However the increasing importance of environmental taxes, carbon pricing and their impact on the price of the product and margin will likely transform the tax function to a key player of the ESG strategy, value chain and business model discussion. Tax function should see ESG as an opportunity to transform and become an effective business partner to management and operations.
With our broad experience and manifold services, we can ideally support you in your ESG transformation. PwC offers you a tailor-made service and product package.
ESG is here to stay. But in terms of green taxation there is no international harmonisation yet. A holistic overview of the environmental taxes your company might be exposed to enables you to make informed decisions and optimise your activities.
Leader of ESG and Tax Reporting & Strategy, PwC Switzerland
Tel: +41 58 792 59 40
Dr. Antonios Koumbarakis
Sustainability & Strategic Regulatory Leader, PwC Switzerland
Tel: +41 58 792 45 23
Director Tax and Legal & Member of the EMEA ESG Centre of Exellence, PwC Switzerland
Tel: +41 58 792 95 07
Business Development Tax and Legal Services, PwC Switzerland
Tel: +41 58 792 47 89