- As ESG policies continue to evolve and take root in organizations’ decision-making, it is important for companies to focus on their tax risk and governance to ensure they are prepared to take current action and make upcoming changes.
Environmental, social, and governance (ESG) considerations increasingly are becoming more top of mind for executives and boards worldwide. As stakeholder groups such as investors, consumers, and employees are now basing their investing, purchasing, and employer selection behaviors on an organization’s ESG strategy, it is crucial for organizations from the Fortune 100 to the middle market to actively consider policy and implement action. Companies have made strides in recent years to include ESG as a topic of discussion at board and C-suite meetings and are taking action in this area. However, too often, especially in the U.S., tax is not considered as a key part of that discussion despite the fact that tax planning provides many opportunities to add value to an organization’s ESG strategy.