Last 22 April 2021 the world celebrated the “Earth Day”, launched by the USA in 1970, to make governments and people sensitive about the health of our planet and how a joint effort of everyone to protect it is absolutely necessary for the continuation of life (human, animal and vegetal) in the next decades/centuries.
Especially in the last decades we have noticed dramatic effects of the anthropic pollution that have been classified as “Climate Change” and what at the beginning seemed to be a small price to pay for the evolution of the economy (“the progress”) of countries has actually turned out to be a huge toll that cannot be accepted anymore. For this reason, for example, on 11 Dec 2019 the European Union launched the EU Green Deal with a number actions addressed to limit climate changes starting from countries and going down until the single individual’s habits.
Other countries have realised that is now time to act and implement changes of what we intend as overall progress in our societies.
All changes cost money and companies, factories, large corporations request funds to implement changes in manufacturing, production, transport, logistics, energy and water usage, etc. and become greener.
As usual in life, money is king and a good part of the funds required to implement changes should come from taxation and here it comes an important point. Activities that originate revenues offer jobs opportunities, generate added valued and contribute to a better quality of life for the entire society; for this reason they should be carefully taxed. It is known that entrepreneurs face high risks when setting up their company providing either goods or services and high tax rates for these ventures are not correct. In my opinion, in the modern world what it should be defined is two categories of taxes: one for those who pollute a lot and don’t intend to change their behaviour in the short term and another one for those who enjoy great gains from playing with financial tools on stock exchange. The latter in particular is quite a delicate subject: it is not possible to compare who generate high revenues by producing some good/service – facing daily risks – whose benefits fall on a larger share of the population and those who enjoy high revenues by playing at their own desk with financial tools and whose benefits fall on themselves only. These ones don’t contribute to the overall progress of society and for this reason should be taxed more.
I’d like to highlight that my opinion doesn’t have – or belong to – any political colour or wing: it just comes from some thinking I did as an entrepreneur that reads what happens on the worldwide markets, talks with other entrepreneurs and knows how many risks entrepreneurship involves. In his great book “Start with Why” Simon Sinek describes the principles that someone with a business idea should follow and the first question to answer is “why” this venture should start and certainly the answer shouldn’t simply be “to make money”, but to fulfil a passion, to improve people’s life, to improve the society. Money will come and bring revenues that, I think, should be taxed at a reasonable rate.
The topic would need much longer description and deeper analyses and this is not the right place to do it. One good thing is that EPN Consulting, which strongly believes in protecting the Environment, is proud to coordinate the “Collective Innovation to Fight Climate Change” Erasmus+ project that thanks to working with a group of six engaged European partners aim to give their contribution to saving our planet for the future generations.
Stefano Mainero
EPN Consulting Founder & CEO