Roughly 50% of the Indian firms included in a PwC report released on Tuesday have expressed their commitment to achieving the net-zero target. This demonstrates their determination to address climate change issues and transition to a low-carbon economy.
Of these, about 48 per cent committed to achieving net-zero emission target by 2030, said PwC India’s Tax transparency in ESG survey conducted between April-July 2023.
The report is based on a market survey of nearly 250 tax heads, sustainability/ESG leaders, CFOs and CXOs of Indian businesses, spanning industries such as financial services, technology, media, and telecom (TMT), retail and consumer, engineering and construction, among others.
In recent years, the global business landscape has witnessed a significant transformation in sustainable and responsible practices, said a PwC release, adding "as a core pillar of corporate strategy, companies are investing in sustainability and striving to communicate their intentions, commitments and achievements clearly to stakeholders."
According to the survey, nearly 60 per cent of the respondents underlined the need to incentivise Environmental, Social, and Governance (ESG) interventions by the government.
One of the findings of the survey is that with incentives and policy interventions, governments can support businesses in achieving their decarbonisation commitments, addressing income inequality, and promoting diversity and inclusion, underpinning essential elements of ESG transformation for businesses.
Looking ahead, the survey suggests the Indian corporates are aware of increasing trend towards more comprehensive and voluntary adoption of tax disclosures in the coming years. This aligns with global practices and the evolving expectations of stakeholders.
Such transparency in tax matters is not only critical for businesses to demonstrate their commitment to responsible corporate behaviour but also for the overall integrity of the tax system, the release said.
“The survey brings to light the evolving nature of tax transparency in the ESG framework, reflecting a pivotal shift in corporate India.
"The need to adopt transparent tax practices and effectively communicate tax narratives is key to building trust with stakeholders and aligned with pioneering efforts around India’s climate ambitions, " said Sambitosh Mohapatra, ESG Leader, PwC India.
