The B Team is delighted to announce that Ørsted, the Denmark-headquartered renewable energy company, is the latest signatory to The B Team’s Responsible Tax Principles.
Ørsted is recognized as a leader in tax transparency as the first Danish company to voluntarily report how much tax it pays in every country in which it operates. This year Ørsted went further, becoming one of the first companies in the world to provide comprehensive tax reporting according to a new standard published by the Global Reporting Initiative (GRI).
"The voluntary disclosure of our country-by-country tax payments sends an important signal, that we seek to pay the right amount of tax, in the right place, and at the right time," Karl Berlin, Head of Tax at Ørsted said, "It is only through tax transparency that all stakeholders can feel reassured that the company is acting responsibly."
Ørsted’s endorsement of The B Team Responsible Tax Principles signals the company’s ambition to continuously evolve its approach. It will join The B Team’s Responsible Tax Working Group—a forum for companies to share best practices and learnings, engage with a range of stakeholders including civil society and investors and contribute to an informed debate on responsible tax. Ørsted also commits to the full realization of the Responsible Tax Principles over time.
Ørsted’s move comes at a time when corporate tax is once again in the spotlight. As the global pandemic puts significant strain on public finances, policymakers and the public are demanding that companies demonstrate that they are acting responsibly on tax. This week the European Union is considering whether to mandate country-by-country tax transparency for all companies. Many countries have also taken steps to prevent companies operating in tax havens from accessing government support.
Ørsted joins a growing movement of 21 major multinationals that have responded to these shifting expectations by voluntarily embracing responsible tax, as part of their commitment to better environmental, social and governance (ESG) performance, and to supporting the Sustainable Development Goals.
"Our core business revolves around sustainable energy. But our commitment to sustainability touches all aspects of our conduct," Marianne Wiinholt, CFO of Ørsted said, "Responsible tax is about proving, e.g., through transparency, that our tax practices are responsibly managed. Public expectations of companies continue to evolve, and we look forward to working with The B Team on our open and transparent approach to tax disclosure."
The B Team encourages others to follow the leadership example set by Ørsted by endorsing the Responsible Tax Principles. To learn more about The B Team, the Principles and how you can join this movement, see here or contact Ewan Livingston-Docwra at firstname.lastname@example.org.
About The B Team Responsible Tax Principles
Developed by multinational businesses with input from civil society, investors and representatives from international institutions, The B Team Responsible Tax Principles were launched at the Tax & SDG Conference at the United Nations Headquarters in New York in February 2018. The B Team Responsible Tax Principles represent a new blueprint, designed to raise the bar on how businesses approach tax. They are the first consolidated effort from a group of cross-sector, cross-regional companies to articulate best practice in seven key areas of tax, from corporate governance to relationships with authorities to transparency.