Why should organizations accelerate the implementation of climate strategies?
Organizations are continuing to improve the quality and coverage of climate risk disclosure reporting. Yet, the 2021 EY Global Climate Risk Disclosure Barometer revealed that only 41% of organizations are conducting scenario analysis, and only 15% feature climate change in their financial statements.
According to the 2021 EY CEO Imperative Study, the bigger the company, the greater the stakeholder pressure to launch this process today. Of all the CEOs participated in the EY study, 67% of respondents reported moderate to extreme pressure from stakeholders to engage with global challenges.
In addition, the 2021 Europe Attractiveness survey’s data confirmed that 9 in 10 businesses consider environmental sustainability to be an important factor that determines their investment strategy. Furthermore, investors are preferencing assets with decarbonization strategies. Same trends are observed in the Baltics.
How EY teams can help in this challenge?
As energy and environmental taxes continue to increase in importance, EY Global Sustainability Tax Network is ready to serve as a trusted business advisor to help:
- Reduce the cost of operations: The overall costs of operations can be reduced by ensuring energy and environmental taxes are minimized, strategies are adapted, and reliefs are identified and implemented.
- Improve the return on investment (ROI) of sustainability-related projects: By identifying and securing sustainability-related incentives and government funding, the ROI of projects from renewable energy investments to energy efficiency retrofits can be positively impacted.
- Mitigate risk: The threat of audit and penalties from an energy tax perspective can be reduced by ensuring all compliance and reporting requirements are met.
- Thought leadership: Organisations also want to understand how environmental taxes will develop and how they can influence government policies so that they achieve the desired outcomes without causing undue complexity for businesses.
Every business change has a tax implication – are you aware of what this means for your changing business model?