Navigating Carbon Tax and ESG Reporting in 2025 – A CFO’s Guide
As of 2025, South Africa’s Carbon Tax has increased to R190 per tonne CO₂e, with a roadmap to R440 by 2030. In tandem, ESG reporting is becoming mandatory in more sectors, driven by investor scrutiny and international alignment.
Carbon Tax: Who Is Liable?
If your business emits beyond legislated thresholds — particularly in manufacturing, energy, or logistics — you are likely subject to direct carbon tax liabilities.
Rising Compliance Pressure
- Section 12L Incentives: Allow rebates for approved energy-efficiency initiatives.
- Carbon Offset Schemes: Businesses can purchase credits to reduce tax burden.
- Green Financing Options: Integrating carbon management into financial reporting can enhance access to ESG-driven capital.
The ESG Imperative
Beyond taxation, businesses must now:
- Include climate-related disclosures in financial reports
- Prepare for integrated audits considering environmental and social risks
- Build transparent, investor-friendly sustainability strategies
How Marwick & Company Supports Sustainability Compliance
We help clients:
- Assess carbon tax exposure
- Develop ESG-aligned reporting systems
- Integrate sustainability into audit and assurance workflows
- Access Section 12L and offset schemes
Conclusion
Carbon and ESG costs are no longer peripheral — they are material financial considerations. Marwick & Company equips you to comply, innovate, and lead in an increasingly green economy.