The inaugural KPMG Green Tax Index measures how countries are using taxes to influence corporate sustainability behavior. The index, which ranks each country's green-tax incentives and tax penalties, shows which areas of the world are the most tax-friendly for corporate sustainability initiatives.

The idea for the index sprang from discussions with clients, though the Green Tax Index measures countries' initiatives and not individual corporations' efforts. But as John Gimigliano, principal-in-charge of sustainability tax at KPMG's Washington national tax practice notes, the index satisfies corporate inquisitiveness over which countries would be the best investment for their sustainability efforts. Clients, according to Gimigliano, often say "all of our growth is outside of the U.S. Can you tell me about France or Singapore?"

And for those companies already investing in cleaner manufacturing facilities in a given part of the world, for example, the index is also a good guide for seeing if a corporation has taken advantage of all of the tax incentives that are available.

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