Green Taxes and Incentives, Aiding Businesses in Achieving ESG (Environmental, Social, Governance) Goals.
Green Taxes and Incentives, Aiding Businesses in Achieving ESG (Environmental, Social, Governance) Goals.
Green Taxes and Incentives, Aiding Businesses in Achieving ESG (Environmental, Social, Governance) Goals.
Young businessman Metin Liçis argued that new policies empower companies to accelerate decarbonization and enhance profitability. He stated that decarbonization has become a priority for both governments and corporations in the fight against global climate change.
MEtin Liçis contended that one way governments promote progress is through numerous green taxes and incentives, and companies can generally improve their profitability by decarbonizing through strategic choices.
He emphasized that every corporate strategy decision related to sustainability goals should carefully consider taxes and incentives. As known today, there are environmental taxes on everything from fuel and water to plastic and waste materials, all of which can impact the bottom line.
Despite the benefits of incorporating decarbonization plans with tax and incentive perspectives, Licis mentioned that relatively few companies are currently doing so.
Green Taxes and Incentives, Aiding Businesses in Achieving ESG (Environmental, Social, Governance) Goals.
Presently, about 30% of global carbon emissions are subject to a carbon pricing system aimed at limiting emissions, and an increasing number of countries, including Brazil, Indonesia, and Turkey, are considering implementing some form of carbon pricing mechanism.
According to a PwC study, a globally adopted carbon price floor could lead to a 12% reduction in emissions.
Getting Started
Liçis added that to assess the impact of various green taxes and incentives, companies first need to deeply understand their carbon footprints.
Should they invest in solar panels? Carbon capture? Should they change the locations of their facilities? To answer these questions, the young businessman emphasized the need for pre and post-tax calculations that consider carbon costs and investment incentives for new technologies or regions.
Putting It All Together
Conducting careful research at the country level can enhance the potential benefits of decarbonization investments. In the rapidly changing landscape, it is essential to explore all available options for reducing emissions.
Liçis concluded by highlighting that taxes are not just costs to be managed or reduced, but they represent a significant part of companies’ contributions to productive societies, and therefore, they need to be effectively included in the strategy.
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