Turning compliance into a competitiveness roadmap
Sustainability in Tax and Legal Services
As the European Union introduces new sustainability-related financial and reporting obligations, the tax and legal functions are increasingly tasked with performing legal scoping, organising reporting, supporting financial planning, and generally ensuring compliance.
For example, the FitFor55 package makes the incorporation of carbon pricing (ETS and CBAM) and sustainability incentives into financial planning a business imperative to optimise tax performance and mitigate long-term financial challenges. Conversely, some circularity and due diligence rules such as the Packaging and Packaging Waste Regulation (PPWR) and the EU Deforestation Regulation (EUDR) are designed to reduce the sustainability risks that EU companies will face as the polycrisis unfolds.
The tax and legal functions need to proactively align their strategies with sustainability to strengthen governance, enhance financial planning, and ensure supply chain resilience in a rapidly evolving business environment.
How we can help
Upcoming carbon taxes, supply chain due diligence, and circular design requirements may seem like a burden, but they can also create opportunities. Our Tax and Legal Services (TLS) teams can support your business in understanding how to turn sustainability obligations into strategic roadmaps for global competitiveness.
Join us to explore how we help organisations manage supply chain risks, identify cost-saving opportunities, and create products of the future by integrating sustainability regulations into your company’s management to drive long-term success.
What we can offer
- Carbon Border Adjustment Mechanism (CBAM)
- EU Emission Trading System (ETS)
- Circularity of Packaging
- EU Deforestation Regulation (EUDR)
- Anti-Greenwashing Directive
Carbon Border Adjustment Mechanism (CBAM)
The CBAM is an EU regulation designed to prevent carbon leakage by applying a carbon tariff to certain imported goods based on their embedded greenhouse gas (GHG) emissions. It aims to level the playing field between EU producers subject to the EU Emissions Trading System (ETS) and foreign producers operating in jurisdictions with lower or no carbon pricing.
What PwC can do?
- Financial preparedness: Enabling businesses to anticipate and manage carbon-related costs effectively, integrating CBAM impacts into financial strategies.
- Simplified compliance: Streamlining the CBAM reporting process through automation and efficient data management, reducing administrative burdens. Book a demo to explore our CBAM solution.
- Cost optimisation: Supporting strategic decisions to minimise CBAM certificate costs and identify rebate opportunities for improved financial efficiency.
EU Emission Trading System (ETS)
The ETS is the EU’s primary carbon pricing mechanism, requiring businesses operating industrial installation, shipping companies, and aircraft operators to monitor, report, and pay for their emissions.
What PwC can do?
- Strategic carbon cost management: Empower your business to anticipate, manage, and optimise ETS-related costs, turning carbon pricing from a compliance obligation into a strategic financial lever.
Circularity of Packaging
The EU is strengthening rules to promote packaging circularity and resource efficiency, ensuring businesses reduce waste via reusable packaging, enhance recycling at scale, and comply with other sustainability standards.
Key regulations include:
Extended Producer Responsibility (EPR): Shifts waste management costs to producers of packaged goods, requiring financial contributions for collection, recycling, and disposal.
Packaging and Packaging Waste Directive: Imposes stricter targets for packaging reduction, recyclability, and reuse to minimise environmental impact.
What PwC can do?
Impact analysis and scope assessment: Evaluate regulatory requirements, assess business exposure, and define compliance obligations under circular economy regulations.
Enhancing EPR compliance: Support your tax and finance teams to understand the upcoming EPR obligations in the packaging and textile sector, as well as cost-saving opportunities from existing schemes.
EU Deforestation Regulation (EUDR)
The EU Deforestation Regulation (EUDR) aims to prevent deforestation linked to certain products placed on the EU market. Companies must ensure that commodities such as beef, cocoa, coffee, palm oil, rubber, soy, and wood and goods produced using these commodities are traceable, deforestation-free, and comply with local legislation.
What PwC can do?
- Regulatory compliance: Ensure adherence to EUDR due diligence and reporting requirements.
- Supply chain integrity: Reduce supply disruption risks by verifying deforestation-free sourcing.
- Market access: Maintain access to the EU market by aligning with import and export regulations.
Anti-Greenwashing Directive
The Empowering Consumers for the Green Transition (EmpCo) Directive, also known as the Anti-Greenwashing Directive, amends consumer protection laws to ban misleading environmental claims and sustainability labels. Its goal is to promote transparency in sustainability communications.
What PwC can do?
- Brand integrity and trust: Strengthen consumer confidence with transparent, evidence-based sustainability claims.
- Risk mitigation: Avoid legal penalties and reputational damage from non-compliant claims.
The team that will support you
Lorenzo Costa
Aurélien Denis
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