Integrating environmental, social and governance (ESG) policies into a company can lead to long-term reductions in certain costs, increased competitive advantage and investment, avoiding disputes and strengthening relationships with shareholders and other stakeholders. But in the short term, by investing in ESG, the cost structure at the group level may undergo certain changes, which require more attention to how to distribute the costs and risks associated with this activity, including in terms of transfer pricing. .
In particular, from the point of view of transfer pricing, there may be changes in operating or business models, the emergence of new types of transactions or sustainable financial instruments/products, which must be correctly reflected in the applied transfer pricing policy.
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The article was signed by Ionuts Simion, partner, and Daniela Gogu, consultant
Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.