The Global Reporting Initiative (GRI), a widely adopted sustainability reporting framework, has developed the ‘Tax Standard’, the first global standard for comprehensive tax disclosure at the country-by-country level. It supports public reporting of a company’s business activities and payments within tax jurisdictions, as well as their approach to tax strategy and governance. Major investors, civil society groups, labour organizations and other stakeholders have all signalled their backing for the Tax Standard, as it will help address their growing demands for tax transparency. The Tax Standard has been developed in response to concerns over the impact tax avoidance has on the ability of governments to fund services and support sustainable development, and to give clarity on how much companies contribute to the tax income of the countries where they operate. Fiona Reynolds, CEO of Principles for Responsible Investment (PRI), welcomed the new standard stating that “tax avoidance is a leading driver of inequality and as such a responsible approach to tax by business is essential”.

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