Tax transparency is on the rise – yet depth of disclosure is often lacking
Published date: 11 February 2025
Analysis of GRI 207 adoption indicates significant variations by regions and sectors, with country-by-country data least reported
Reporting on tax as a sustainability topic by major multinational companies is a growing trend, however, comprehensive disclosure is patchy, according to new research from GRI with support from Deloitte Netherlands.
The publication In-depth analysis of reporting trends using the GRI Tax Standard is based on initial research that found a quarter of the 1,000 largest companies in the world use GRI 207 – the leading global standard for tax transparency – in their sustainability reporting.
The new analysis is a deep dive of reporting trends among 71 companies that referred to all four of the GRI 207 disclosures in their report: approach to tax, tax governance, stakeholder engagement, and country-by-country reporting.
Key findings include:
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- A majority of the companies disclose (all or partly) their approach to tax (73%), tax governance (56%), and stakeholder engagement (54%), while only a minority (22%) include country-by-country tax reporting.
- Reflecting the largest number (28) of the analyzed firms, Europe is also the leading region when it comes to disclosing on GRI 207 requirements (at 62%), significantly higher than the Americas (28%) or Asia-Pacific (21%).
- GRI 207 disclosures are most widely applied by companies in Oil & Gas (67%), Consumer Goods & Retail (57%), and Energy & Utilities (52%) – while at the other end of the scale is Food & Beverages, Food Retailers, Electronics & Technology (all 18%).
- One-in-five companies indicate they applied external assurance to their GRI 207 reporting, and 30% explicitly reference tax as a material topic.
It is encouraging that hundreds of companies around the world use GRI 207 to report their tax-related impacts in way that aligns with our global best practice. We acknowledge that reporting is a journey and applaud these leading companies that have taken the decision to make their tax practices more transparent. 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. This includes Australia’s recently launched country-by-country reporting rules, which are based on the GRI Tax Standard.”
Bastian Buck, GRI Chief Standards OfficerThe GRI 207 Tax Standard is a unique tool to transparently tell your tax story – from your tax policy, to governance, to country-by-country reporting. It is comprehensive, international, and cross sector. Although many companies worldwide already use GRI 207, this research shows that there is still a lot of potential to further develop such a tax story telling. In this regard, I can definitely recommend taking into account the insights and recommendations of this research. This will also help to address tax reporting expectations and the risk, perceived or otherwise, of tax greenwashing.”
Dave Reubzaet, Director Tax & Sustainability, Deloitte NetherlandsThe report offers a series recommendations to help companies improve their tax reporting, based on common gaps identified in current practices:
Provide detailed reporting on GRI 207 requirements, including data at the country-by-country level, as this is increasingly expected by stakeholders.
- Combine GRI reporting with other tax initiatives, such as the B-Team Responsible Tax Principles and the Fair Tax Mark, to address behavioral tax norms.
- Be clear about the level and scope of external assurance applied to GRI 207 reporting, using accessible language that is understood by non-tax specialists.
- Be aware of advances in artificial intelligence, which means AI tools are enabling access to fast and in-depth comparison of GRI 207 reporting with peer organizations.
- Increase transparency by making it easier for stakeholders to find and view GRI 207 reporting data.
To put the findings in further context, the publication includes guest articles that reflect on developments in tax transparency – provided by the UN SDG Tax Office, the FACT Coalition, Tax Justice Network, Resilience Capital Ventures, and Deloitte Netherlands.
Launched five years ago, the GRI 207 Tax Standard is the first global standard for comprehensive tax transparency. It was developed in recognition of the vital role tax contributions have on sustainable development, and the widespread stakeholder demands for public reporting on tax, at the country level. In 2024, Nobel Prize winning economist Joseph Stiglitz cited GRI 207 as the “gold standard” for tax transparency.
The GRI/Deloitte publication Global adoption trends for the GRI Tax Standard (published May 2024) found 26% of the 1,000 largest global companies by revenue voluntarily report using GRI 207.
GRI’s Guide for Policymakers series includes Tax: the next frontier for ESG. Charting global momentum around the world towards tax transparency, it sets out that building tax disclosure policies on the best practice in GRI 207 will support both adherence by organizations and interoperability with existing legislation.