KPMG China: Our Impact Plan

Welcome to KPMG China's third annual ESG report, Our Impact Plan. In the face of significant challenges, such as extreme weather, an energy crisis, geopolitical instability and more, we remain steadfast in our belief that putting ESG into practice is a core responsibility of the business community. In doing so, we have incorporated ESG principles across our company strategy, business operations and services, creating positive impacts for our people, our clients, the environment and society.

Sustainable development needs to go beyond lip service – it should be backed by sound principles and philosophies. China has put ESG at the heart of several ambitious national strategies, including green transformation, rural revitalisation and its 'dual carbon' goals. We are committed to joining the nation on this journey and playing our part to realise mutual gains for society and corporates, while achieving more impactful sustainable development.

As a professional services firm, KPMG has pledged to accelerate its ESG strategy. In 2021, the firm announced a global investment of USD 1.5 billion in its ESG change agenda and capacity building. As part of this, we are leveraging our leading expertise in the financial markets and ESG arena to lend support to businesses with their own low-carbon transformations – creating long-term value and helping cultivate a sustainable business ecosystem.

We have also forged in-depth collaborations with institutions in China’s carbon market as we look to contribute to our country’s green transformation. In July 2022, KPMG China signed a strategic cooperation agreement with the China Carbon Emissions Registration and Clearing Company Limited (CCERC) – the only carbon emissions registration and clearing institution authorised by the Chinese Government. In December 2022, KPMG China officially joined the China Carbon Neutral Action Alliance (CCNAA), which is led by the Shanghai Environment and Energy Exchange, as a council member.

Tackling climate change requires us all to change our mindsets and behaviours. Globally, KPMG has committed to halving our direct and indirect carbon emissions by 2030 as we strive to become a net-zero carbon organisation. At this stage, our core strategies focus on improving energy efficiency, sourcing renewable energy options, promoting sustainable business travel, reducing carbon emissions along the supply chain, promoting circular economy and protecting biodiversity.

In 2022, we launched the internal carbon price (ICP), which links our carbon emissions to financial costs. Moreover, we engaged with top suppliers in China in the CDP Supply Chain programme as we look to understand and reduce our supply chain emissions. To protect nature and biodiversity, we have collaborated with many local and global non-profit organisations (NPOs) to support conservation projects that aim to restore our freshwater, wetland, forest and marine ecosystems, thus promoting the transition to become nature positive.

Incorporating ESG principles into our corporate culture and people strategy is a key priority. We strive to promote a gender inclusive and equitable workplace by upholding the values of Inclusion, Diversity and Equity. At KPMG China, women represent over 33% of our board and 42% of leadership positions. We are also innovating our work models by introducing more flexibility for all our people under the Everyone Agile initiative, and equipping our people with professional ESG training to empower them to become a formidable force in our ESG transformation.

Over the years, KPMG China has continued to support the communities in which we operate. We give back to society and take our role as a responsible corporate citizen seriously. In 2022, we were awarded the United Nation Women’s Empowerment Principles (WEPs) Country Award in the Community Engagement and Partnerships category, acknowledging our contribution to driving gender equality in communities. We also support KPMG’s global ‘10by30’ strategy, which aims to economically empower over 10 million disadvantaged young people around the world through education, employment and entrepreneurship. In 2022, KPMG China launched ‘Light the future’, an educational volunteer programme to equip disadvantaged youths with future-ready skills and a work-based learning experience, enabling them to be adaptive and competitive in their future careers. Moreover, we promote rural revitalisation by building capacity for social organisations and upgrading infrastructure to improve the quality of education in rural areas in China. We are always keen to see our people devote their time, expertise and skills to volunteer work, and deliver meaningful impacts to the wider community and the environment.

A journey of a thousand miles begins with a single step. In times of uncertainty and challenges, sustainability is the key to building adaptability and resilience. It is a consensus in the global community that ESG is a fundamental cornerstone of sustainable development. However, we also need to move from words to deeds – initiating change requires concrete actions.

Looking forward, KPMG China will strive to lead by example and take the necessary actions to put our commitments into action. ESG will continue to be the watermark running through our organisation, while our purpose – to inspire confidence and empower change – will guide our way of doing business. Together with our stakeholders, we aspire to be proactive in initiating change as we build a sustainable and promising future.

Honson To
Chairman
KPMG Asia Pacific and China