The Global Reporting Initiative (GRI) has found that comprehensive disclosure on tax by major multinationals remains “patchy”, despite the issue growing in importance as a sustainability topic. An analysis of reporting trends by the GRI concluded that a quarter of the 1,000 largest companies in the world use GRI 207 – a global standard for tax transparency launched five years ago – in their sustainability reporting. Almost three quarters (73%) of the companies using GRI 207 entirely or partially disclosed their approach to tax, while more than half disclosed on tax governance (56%) and stakeholder engagement (54%). However, just 22% included country-by-country tax reporting in their disclosures. Europe led on disclosures, ahead of the Americas and Asia-Pacific. GRI 207 standards were applied by 67% of the oil and gas firms captured in the analysis, 57% of consumer goods and retail companies, and 52% of energy and utilities businesses. “We acknowledge that reporting is a journey and applaud these leading companies that have taken the decision to make their tax practices more transparent,” said Bastian Buck, Chief Standards Officer at the GRI. “The next step is more comprehensive and detailed reporting, which fully reflects how businesses contribute in the countries and communities where they operate. Companies that align with the disclosures in GRI 207 will be best placed not only to respond to the needs of their stakeholders, investors included, but also to get ahead of legislative changes that are increasing requirements for tax transparency.” Earlier this week, an industry group, led by the GRI, published a public letter urging UN member states to prioritise key corporate sustainability disclosures ahead of the Fourth International Conference on Financing for Development negotiations.
