Three ways to talk about responsible tax in your sustainability report
Last year we noted how the inclusion of responsible tax in businesses’ sustainability, ESG and impact reports was improving but still left much to be desired.
So, here’s three ways our Fair Tax Mark accredited businesses are talking about tax in their sustainability reports – we hope you’ll be inspired to explore it in yours.
1. As a key component of supporting the UN SDGs
The UN Sustainable Development Goals (SDGs) – the global targets adopted by the UN to achieve peace and prosperity – are an increasingly popular way for businesses to signpost their impact or demonstrate their sustainability work in their reporting.
While responsible tax is critical for progress across all 17 SDGs, Fair Tax Mark accredited businesses note particular correlation with SDG 8 and target 16.6.
SDG 8 – Decent work and economic growth
In their 2024 sustainability report, SSE note the link between responsible tax and the just transition, ensuring fair work and sharing economic value.
SDG 16.6 – Transparent and accountable institutions
“We are committed to conducting our business in a way that contributes to the United Nations’ Sustainable Development Goals,” Ørsted wrote in their 2023 combined annual and sustainability report.
“Taxes are a key contribution to the SDGs, in particular target 16.6 on the development of effective, accountable, and transparent institutions.”
In addition, for businesses signed up to the UN Global Compact initiative, as SSE and Orsted are, showcasing Fair Tax Mark accreditation in reporting demonstrates that claims to responsible conduct have been independently verified.
2. As a sign of general good governance and compliance
“Good governance, and sensible and efficient economic management serve as prerequisites for a sustainable existence,” AgroFair noted in their 2022/23 sustainability report, and responsible tax can undoubtedly be a sign of good governance more broadly.
Similarly, Unite use their Fair Tax Mark in their sustainability report as an example of one of many initiatives the business is involved with that fosters ethical governance.
3. As demonstrating positive community impact
When Coventry Building Society surveyed their stakeholders for their 2023 sustainability report, they found regulation and compliance was a top material issue, including complying with tax governance.
It’s easy to see why – paying tax fairly can directly impact a businesses community and wider society. As Schroders Personal Wealth’s 2023 responsible business report notes: “we understand that tax is one of the ways we can contribute to our society.”
Similarly, AgroFair adds: “Where applicable, we pay national taxes due correctly and on time, thus contributing to the development of our communities.”
