KPMG is committed to diversity and support of minority groups throughout the supply chain. We seek opportunities to demonstrate our corporate citizenship initiatives and aim to influence the creation of a more sustainable and inclusive economy.
We achieve this through engaging with suppliers and working with suppliers that are working toward similar values which include a commitment to gender equality, upholding human rights and protecting the environment. We have been on our sustainability journey for more than 15 years and have several responsible sourcing initiatives that focus our efforts in this area.
We collaborate with our suppliers to manage potential negative impacts, such as those related to climate and modern slavery, while also seeking opportunities for positive impacts. We are proactive in supporting social and Indigenous procurement, women-owned businesses, and small enterprises.
Supplier Code of Conduct
In 2002, KPMG became a signatory to the United Nations Global Compact (UNGC) signalling our commitment to responsible and ethical business practices in the marketplace. KPMG Australia is committed to sustaining the highest legal, environmental, ethical and professional standards consistent with the Ten Principles of the UNGC in the areas of human rights, labour, environment and anti-corruption. The Supplier Code of Conduct was developed to recognise the Ten Principles, national legislation and KPMG policies already embedded within the Firm, and provides guidance to suppliers who wish to work with KPMG.
Under our Supplier Code of Conduct it is a requirement that all suppliers to our firm conduct their business in an ethical manner and comply with relevant legal and regulatory requirements with regard to all areas of business and operations. Suppliers are expected to meet, and work to exceed, the minimum requirements set out in this policy. KPMG Australia has no appetite for establishing or maintaining relationships with suppliers or business partners who are not committed to implementing appropriate measures to prevent, mitigate, address, or remediate risk.
Indigenous procurement
We continue to make progress on our Reconciliation Action Plan 2021–2025 (RAP). The National Procurement team are proud to have continued to focus on increasing their procurement from Indigenous suppliers, achieving 3.25% against our 3% of addressable spend target. Our commitment is to procure goods and services in a manner that is responsible, equitable, and sustainable.
As active members of Supply Nation, we are proud to have exceeded our Indigenous procurement commitments in FY 2024, furthering our journey of long-term partnerships with key suppliers. The National Procurement Team consistently engages with Supply Nation to gain insights into the status and challenges faced by Indigenous suppliers in their interactions with corporate businesses. The National Procurement teams key focus for FY 2025 is to continue to maintain a 3.25% target.
KPMG's National Procurement team is actively seeking opportunities to support Indigenous businesses through our membership with Supply Nation and other opportunities that align with the strategic direction set within KPMGs Reconciliation Action Plan.
Modern slavery risk assessment
KPMG has developed a Supplier Risk Assessment Framework to test the alignment of supplier policies and practices with the Supplier Code of Conduct through our supplier risk management program.
Our approach to identifying and managing the risk of modern slavery is led by our firm’s Human Rights Working Group. They work closely with a dedicated Human Rights Manager to implement a comprehensive multi-year modern slavery response.
KPMG carried out its annual modern slavery risk area review, which enabled a greater understanding of the key issues elevating modern slavery risk including how challenging global economic conditions may have a flow-on effect on labour rights within our supply chain and operations. This review helped focus our efforts on where there is more likely to be the risk of harm to people and formed the basis of our firm’s commitments for the coming year.
Recognising the importance of continuing to work with our higher risk suppliers on achieving alignment with our Supplier Code of Conduct, we provided them with opportunities for improvement and as a result closed supplier alignment plans due to satisfactory actions being taken.
A key outcome of the Supplier Risk Assessment Framework was that KPMG elected to onboard a cloud-based platform for assessing modern slavery risk in our suppliers. This platform will allow our firm to maintain the components of the Supplier Risk Assessment Framework, while introducing efficiencies to the supplier risk assessment and management process.
The National Procurement team collaborated with the Human Rights Working Group to identify a number of products and services in the firm’s supply chain with a higher-risk of modern slavery. Through this exercise, a timeline and approach for additional risk assessments was developed, focusing on multiple supply chain tiers of these products and services.
During FY 2024, we reviewed and updated the firm’s Procurement Policy, Supplier Code of Conduct, and Supplier Due Diligence Questionnaire. We also supported KPMG Fiji to develop a Supplier Code of Conduct, modelled on the KPMG Australia Code.
ESG commitments
KPMG has made several commitments towards decarbonising its operations and supply chain to achieve net zero. We actively work closely with suppliers who share our vision on climate change and decarbonisation.
As at June 30 2024, 59% of our suppliers (by spend) had set SBTi or equivalent targets, up 40% in 2023 towards our 80% target by 2025. KPMG have continued to source 100% renewable energy for all KPMG tenancies over FY 2024.
Conscious of the impact of emissions of big data and AI, we’ve also pledged to move to 100% renewable energy for our offsite data centres ahead of our 2030 target.
The National Procurement team have taken several steps to increase the percentage of suppliers with Science Based Targets or equivalent carbon reduction targets. Including, but not limited to:
- Updating Procurement Agreements to include ESG obligations that encourage suppliers to implement Science Based Targets and set waste, packaging or circularity targets.
- Working directly with suppliers through the Sustainable Procurement Framework to assist in identifying and implementing opportunities for better environmental practices and to promote knowledge sharing.
- Hosting supplier workshops aimed at building suppliers' capabilities to set and validate science-based targets and report carbon performance.
- Using a cloud-based carbon accounting and emissions management platform to improve supply chain reporting and track climate risk in high emissions supplier categories.
These efforts align with KPMG's commitment to ensure procurement from organisations that share our sustainability ambitions. By working closely with suppliers and providing them with the tools and knowledge to reduce their emissions, KPMG is not only achieving its own decarbonisation goals but also contributing to a broader, industry-wide shift towards sustainability.
Fair Trade
In 2010 KPMG was endorsed as one of Australia’s largest Fairtrade workplaces and we source all of the coffee and tea in our Sydney and Melbourne offices from ethically responsible businesses.
In addition, we have held Fairtrade marketplaces in our buildings to promote small businesses and encourage our people to shop ethically. In 2012, we were awarded ‘Best Example of Socially Responsible Procurement’ by CIPSA.
E-waste Policy
KPMG is committed to protecting human rights, and to identifying and managing modern slavery risk in our operations and supply chain. The KPMG E-waste Policy is a result of these commitments and seeks to ensure that there are no human rights violations or instances of modern slavery associated with the disposal of our e-waste.
Our Suppliers commitment to managing human rights exposure and mitigating any modern slavery risks that may exist is a key focus within the firm. We expect our Suppliers will communicate this E-waste Policy to employees and subcontractors who support them in supplying to KPMG, so that they too are aware of and understand the standards set within this policy.
Supplier payment policy
KPMG Australia is committed to building strong sustainable relationships with our suppliers through fair and equitable dealings.
We understand that cash flow is a key issue for all businesses, especially small businesses, and late payment of their invoices, or lengthy and extended payment schedules can be a threat to their wellbeing or even survival.
As a signatory of the Business Council of Australia’s Supplier Payment Code, KPMG has a positive record of prompt payment that we continue to work to improve. We also report against the Payment Times Reporting Scheme, introduced by the Australian Government in 2021. We currently pay 95% of our Small Business Supplier invoices within 30 days.
Find out more – KPMG's Supplier Payment Policy (PDF 99.5KB)
