Sustainability and Climate Change Tax
- Are we complying with the relevant environmental tax legislation in each country that we operate in?
- What are my current environmental tax exposures and are these likely to change?
- How can I best structure my investments to obtain any available tax incentives?
- How can I structure my investments in and out of environmental funds?
- What Emissions Trading Schemes exist and how do they apply to me?
- What transfer pricing issues should I be addressing relating to the green agenda?
Meeting Your Needs
Our sustainability and climate change tax services cover the following areas:
We help clients cut through the complexity of different environmental policies and economic instruments around the world, advising businesses, their investors and their management on how to improve performance, implement long term sustainable tax strategies and understand and communicate the total tax contribution they make to society. Our human resource services team, within the network, also provides guidance on how to align recruitment, retention and reward to sustainability strategies.
- Compliance - we help clients ensure that they are complying with the relevant environmental tax legislation and regulations in each of the countries where they have a presence.
- Footprint and monitoring - we help clients keep track of their own exposure to environmental taxes around the world, changes that will impact them, and provide an understanding of why they are impacted by these rules. Working with our colleagues in advisory, we can help our clients change their behaviours to reduce tax bills and become more sustainable.
- Incentives - we help clients understand what incentives they are eligible for and how to structure their investments e.g. in Clean Development Mechanisms ("CDM") or green property, in order to benefit most from the incentives available.
- Fund structuring - substantial sums of money are being raised in capital markets for investment in the broad spectrum of sustainability projects including CDM, green infrastructure, green property, forestry funds etc. We have unparalleled experience in structuring investments into and out of these funds.
- The carbon agenda - as the number of Emissions Trading Schemes around the world grows and the number of our clients subject to those regimes proliferates, we advise our clients on how the scheme rules and the interaction of different scheme rules apply to them. We advise on the tax implications of participating in schemes from both a direct and indirect tax perspective e.g. deductibility of premiums, transfer pricing implications of moving carbon credits around the group, M&A support if a group decides to acquire new technology or change its product mix to make it lower carbon and more sustainable, and interaction of the group's carbon strategy with its tax strategy e.g. which is the best entity to purchase credits taking into account any available tax losses.
- Transfer pricing - we help clients address transfer pricing issues arising as a result of the green agenda, for instance in relation to major new product costs and/or savings, the development of new products and processes, the impact on new or existing brand value, the creation or enhancement of intellectual property assets, changes to the supply chain and operating models, participation in new regulatory or trading regimes, profit changes that reflect new environmental costs and benefits and new products. We work with clients to ensure their transfer pricing policies and procedures are adaptable and can achieve the arm's-length standard and comply with regulations. We also help clients take advantage of opportunities to structure their business models and transfer pricing policies to improve the effective tax rate.
- Human resource services - we help clients redefine their people strategy in light of the increased focus on the sustainability and climate change agenda. Our people and sustainability offering encompasses leadership and employee wide training and development, employee engagement and communication programmes, as well as expertise around building sustainability and climate change into reward and incentive packages and benefit schemes.
- Policy consulting - we are actively engaged with governments worldwide, to consider ways in which their tax regimes can contribute to the development of a greener economy. We also make representations to government and regulators, on behalf of clients, when they are experiencing difficulties in interpreting or complying with specific environmental policies and legislation.