Issued in September 2020, the Stakeholder Capitalism Metrics were designed to harmonise ESG reporting and provide a common core set of ESG metrics and disclosures on non-financial factors for investors and other stakeholders. The metrics were developed within the International Business Council (IBC) by CEOs from 120 of the world’s largest companies. Over 70 companies now include the metrics within their reporting materials.
Tax is included within these metrics under the prosperity category in the form of the taxes borne element of the Total Tax Contribution (TTC) methodology. There is an expanded metric including the options of disclosing the taxes collected element of TTC and/or geographical analysis of that data.
Making a disclosure is only the tip of the iceberg, to disclose with confidence companies need to invest in underlying tax reporting and tax governance control framework so that narrative statements and numbers confidently reflect the day-to-day reality.
