How tax data can help you address growing ESG reporting requirements

Tapping into existing tax data can reveal efficiencies and the right approach to tackling the ESG data dilemma.

With information everywhere, how can you find what’s really needed?

Amid concerns and complexities surrounding ESG compliance, there’s one bright spot: most of the data you need for reporting is data you already have. And that data probably sits partly (or wholly) within your tax department.

Having that tax data in house, the question for ESG data becomes, “How do you find it and apply it?” Reusing tax data to meet ESG requirements requires the right technology and the right team.

This is a challenge that the EY and Microsoft Tax Alliance is familiar with. In fact, our experience shows that you can address this challenge by starting exactly where you are. Imagine if you had to look no further for your ESG data. We are working with Microsoft to ascertain the best way to reuse data sets from our proprietary data platforms (e.g., EY Fabric, EY Global Tax Platform and EY Mobility Pathway) across multiple regulatory reporting domains to save time and increase transparency for clients, all while confirming data stays secure and private.

Through the strategic alliance between EY and Microsoft, we are helping companies formulate a strategy to meet ESG reporting demands, as well as help them leverage their data to provide insights (past and future) to the business on how to build more sustainable, value-driven organizations.

Uncover ESG upside with an ecosystem approach

It takes a team. Most organizations find themselves needing to source multiple datasets from different technology environments. This requires an ecosystem approach to ESG data where the underlying enterprise resource planning (ERP) can interface with something like Microsoft’s Cloud for Sustainability, which leverages automation to provide near-real-time views of enterprise-wide emissions’ impact because ESG data is fed and sorted direct from your ERP systems, simplifying compliance and making reporting straightforward.

The EY team’s experience reviewing ERP data sets helps identify areas where ESG credits and incentives apply, which can mean that your ecosystem not only addresses core ESG compliance and reporting but also yields capital for the business in existing data sets.

Positioning your organization for a sustainable, data-rich future

Take a holistic approach and don’t reinvent the wheel. Approaching today’s ESG data challenges by tapping into your existing tax reporting ecosystem can make all the difference, especially if it’s based on innovative technology and ERP interoperability.

We want to solve for a healthier planet together. Your enterprise, your people and our compliance reporting platforms can help your organization contribute to a more sustainable tomorrow.