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Corporate changes seem to quicken their pace year after year, and sustainability concerns are keeping pace — setting the pace, some would argue. The 2023 EY Tax Finance Operations Survey shows 47% of executives indicated that green or sustainability taxes will have a significant impact on the organization’s tax and finance function.¹
Given that tax rules are at the heart of many ESG regimes, it’s no surprise that ESG reporting faces a similar data dilemma.
Increasing tax and ESG data — increasing demands
With rapid advances in generative AI, the tax and ESG reporting space can expect some efficiencies from the latest technology. However, generative AI models are only as good as the underlying data sets that feed them, so as organizations look to comply with the latest ESG requirements, and the world urges transparency in reporting, we may be facing one of the greatest data challenges of our time.
Correctly addressing ESG requirements hinges on data. Having plenty of it won’t help — having the right data will. It has to be accurate and relevant to the myriad global regulations that vary, but are nevertheless present, across every sector and industry.