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Global Tax Talk: How tax and sustainability are intersecting in Africa

Authors
Maple

#TaxTransparency: Boosting #ESG in #Africa Key Takeaways:

  • Transparency in tax reporting demonstrates a company's commitment to societal contributions.
  • Investors increasingly require detailed disclosures on companies' social contributions.
  • Integration of sustainability and tax reporting is pivotal for accurate ESG disclosures.

Further Insights

  1. Growing Momentum: An increase in businesses reporting on tax transparency, especially in sectors like metals and financial services.

  2. Compliance vs. Commitment: While many companies comply with sustainability reporting guidelines, few go above and beyond, missing opportunities to build trust.

  3. Investor Demand: There's a heightened demand from investors for more transparency on companies' contributions to society, driven by regulations in the EU and US.

  4. Community Impact: A focus on the social impact of businesses, particularly in the extractive industries, and how they benefit the communities from which they extract resources.

  5. ESG Integration: The need for better integration between sustainability mandates and tax reporting within companies to guide reporting and identify incentives.

  6. Policy Reform: Governments are offering incentives for green initiatives, but the impact and alignment with corporate actions need to be evaluated for reform.

Closing Thoughts: How can companies in Africa and beyond ensure that their tax transparency efforts meaningfully contribute to their ESG goals and societal trust?

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