Posted in: news
23rd March 2021
As corporate tax practice comes under increasing scrutiny, calls for companies to raise the bar are coming from all stakeholders, including investors. Today, leading investors, Domini Impact Investments, Norges Bank Investment Management (NBIM) and PensionDanmark, are encouraging companies to commit to responsible tax practice—endorsing The B Team Responsible Tax Principles as a guiding example for action.
In a statement, these investors make the case for why businesses with responsible approaches to corporate tax are sounder investments. Together, they reject the notion that minimizing taxes falls under corporate fiduciary duty. As asset owners and managers, they assert that creating long-term value for shareholders doesn’t require aggressive tax behavior.
Importantly, Domini, NBIM and PensionDanmark also emphasize the need for responsible tax to be seen as core to any company’s environmental, social and governance (ESG) efforts. Tax is inherently intertwined, they argue, with various ESG risks and must be seen, and acted upon, accordingly. As PensionDanmark CEO and B Team Leader, Torben Möger Pedersen, stressed, "Responsible tax can no longer be viewed as solely a technical manner for finance or tax departments."
Recognizing that many companies are aiming to be responsible taxpayers, these investors encourage them to be transparent in sharing the principles and policies that guide their approach. In addition to this transparency, they also ask them to engage in meaningful dialogue with stakeholders as they seek to evolve their practices.
The B Team Responsible Tax Principles, as Domini, NBIM and PensionDanmark note, provide a blueprint for such action. Learn more about the Principles here and contact Ewan Livingston-Docwra at email@example.com to join these investors in helping make commitments to responsible tax the new corporate norm.
Read the full statement below.