In focus Tax and sustainability
Tax is an important part of the environmental, social and governance (ESG) approach that companies like Shell are implementing. Tax and tax policy can play a critical role in the development of a more sustainable future by raising revenues for social investment and encouraging investment in lower-carbon energy, for example through incentives and grants.
In 2021, at the World Economic Forum, Shell joined a global coalition of more than 70 businesses that have agreed to incorporate a range of ESG performance factors, such as tax, in their key reporting materials, including annual reports and sustainability reports. These Stakeholder Capitalism Metrics comprise 21 disclosures which are mapped to the UN Sustainable Development Goals. One of the metrics is for companies to disclose their total tax borne.
With regard to the environmental aspect of ESG, tax can play an important role in government policies relating to the energy transition, such as taxes on plastics, carbon and waste, and incentives for investment in renewables and lower-carbon energy. Read more in the UK environmental taxes and Electric vehicles and tax in-focus sections.
A sizeable share of taxes paid by individuals and businesses generates the revenues that governments need to fund society’s basic needs, as well as its development and progress. Shell is committed to contributing to the communities where we have activities.
Shell’s commitment to contribute to sustainable development has been part of the Shell General Business Principles since 1997 and we are a founding member of the B Team Responsible tax principles. Read more in Our approach to tax.