The Big Four Firm says that going forward a company’s tax approach will be an important factor in how a business views its role in society regarding its environmental, social, governance commitments.

PwC’s deputy global tax policy leader Will Morris said that an ESG-based approach to tax reporting is about ‘more than publishing data and that it’s about having a tax strategy, and a narrative surrounding that strategy’ that is aligned with the company’s overall values.

This approach helps a company increase the scope of reporting on non-financial material factors such as carbon emissions and workplace racial and gender diversity, which themselves have tax implications, and will help maintain and improve transparency and build external trust with stakeholders and investors as well as with customers.