For years, the conversation around ESG focused almost entirely on supply chains, carbon reduction targets and HR initiatives. But a significant shift is happening. The tax department has moved from an internal compliance function, to an important part of a company’s sustainability strategy.
For senior tax professionals, this represents one of the biggest career opportunities in a generation. The modern tax leader is no longer just managing risk; they are becoming an influential voice in the boardroom.
From our UK-wide tax recruitment practice at Distinct, we are seeing this play out in real-time. Businesses are no longer looking solely for technical specialists to manage compliance deadlines. Instead, they’re competing for strategic advisors who understand both global tax policy and corporate sustainability.
The ESG of modern tax strategy
The relationship between tax and ESG has evolved rapidly since the term first emerged through the UN’s Who Cares Wins initiative in 2004. Today, tax plays a fundamental role across all three pillars of ESG:
- Environmental: The focus has expanded beyond managing the costs of the Climate Change Levy, Plastic Packaging Tax or the UK Emissions Trading Scheme. Businesses want tax leaders who can support sustainability goals by helping secure capital allowances, R&D incentives and other reliefs that support investment and innovation
- Social: Tax is no longer viewed purely as a cost to be managed. Total Tax Contribution (TTC) reporting has become an increasingly important way for businesses to demonstrate their contribution to society and protect their reputation
- Governance: Tax transparency has become a major issue. With frameworks like CSRD and GRI 207 increasing reporting expectations, tax directors are being asked to build robust risk frameworks that stand up to investor, regulator and public scrutiny.
Recent Deloitte research highlights just how important tax governance has become. When tax and finance leaders were asked to identify their top priorities, 57% cited compliance with tax governance and transparency requirements in their top three, while 57% also included improving ESG ratings through stronger tax governance.
As Jon Priestnall, Group Tax Director at Aviva, puts it, “We’re one of the only functions that looks right across the business and sees the whole picture… Often, our vantage point means we are the first to be aware of issues which others may have overlooked.”
The talent gap
The challenge is that these responsibilities require a very different type of tax professional and the profession is still catching up. In a recent survey, just 11% of tax and finance professionals said they were fully confident in their firm’s ESG capabilities. While awareness of ESG has increased dramatically, the market still faces a significant skills shortage when it comes to turning sustainability ambitions into practical business strategy.
Technical excellence remains essential, but businesses now need leaders who can work across departments, communicate with the senior stakeholders and turn complex tax decisions into commercial decisions.
Rise of the commercial tax leader
“The brief from clients has fundamentally shifted over the last couple of years,” notes Andy Craven, tax recruitment director at Distinct. “Organisations are no longer just looking for technical compliance specialists. They want strategic advisors who can articulate tax transparency as a genuine brand asset and actively unlock green incentives to fund operational change.”
For tax professionals who possess this hybrid skillset – the ability to translate complex international tax architecture into commercial, ESG-aligned business decisions – the career opportunity is significant.
“The demand for tax professionals who can combine traditional technical tax expertise with sustainability awareness and governance leadership is significantly outstripping supply,” Craven adds. “Much like the competition for strategic CFOs has intensified in recent years, the race to secure ESG-aware tax leaders is becoming a major battleground for growing businesses.”
Championing sustainable leadership in Yorkshire
This commercial evolution isn’t confined to FTSE 100 boardrooms. Across Yorkshire, mid-market tax leaders are at the forefront of designing innovative sustainability strategies and responsible governance frameworks that compete on a global stage.
That is precisely why Distinct is incredibly proud to be sponsoring the Sustainability category at this year’s Yorkshire Business Awards. Through our work across the region, we see firsthand that the most successful sustainability initiatives aren’t powered by abstract strategy documents – they are delivered by the finance and tax professionals who turn those corporate ambitions into reality.
If your tax and finance teams have been leading the charge on embedding sustainable practices or robust governance into your business, your achievements deserve recognition. Nominations for the Yorkshire Business Awards 2026 close this Friday, 26 June – submit your entry today.
