KPMG China: Our Impact Plan

There is no doubt that over the past year, the world’s economy, environment and society have grappled with a number of challenges – including those related to climate change, extreme weather and geopolitical risks. It is therefore vitally important that established businesses and industry models respond to these difficulties to address the rising expectations of stakeholders and society when it comes to ESG.

A steadfast journey rooted in purpose

Against this backdrop, our belief remains unwavering that corporate resilience and sustainability are pivotal keys to addressing the global challenges facing mankind. Enterprises should pivot from short-term profits to long-term performance, embracing a quality-driven mindset for development. Sustainability not only shapes the future of commercial success, talent development, climate change and other key ESG issues, but it also forms an essential aspect of the Chinese path to modernisation. This path calls for harmony between humanity and nature and promoting the high-quality development of the country’s economy and society.

With this in mind, we are committed to embedding ESG principles into our daily operations and services, particularly through our dedicated efforts in Our Impact Plan (OIP), our firm’s own ESG strategy. OIP plays an instrumental role in our firm’s Trust and Growth ambition, aiming to build trust in society and drive business growth with a long-term perspective.

To integrate ESG as a driving force for corporate development, our focus lies in robust corporate governance, aligning with our vision of becoming the most trusted and trustworthy professional services firm. As an example, under the Governance pillar, our Values continue to guide us in all that we do and drive us to improve our corporate governance. In 2023, we established the National Quality and Risk Leaders (QRLs) Committee to help engagement teams proactively and effectively manage risks.

Information security also represents a key focus area for the firm. To align with world-class standards, KPMG China has earned the latest certifications from international and national information management systems; winning an award that recognises the quality of our privacy information management system and underscores our efforts to safeguard information security.

Sustainability through harmonious coexistence

Since the 18th National Congress of the Communist Party of China, the country has upheld the development of ecological civilisation as the fundamental strategy for sustainable development. This not only leads us to act on the belief that clear waters and lush mountains are invaluable assets, but also recognises our responsibility to build and maintain a beautiful world for future generations.

KPMG China is fully supportive of the national Beautiful China initiative. Over the years, we have collaborated with various local and global non-profit organisations (NPOs) to support conservation projects dedicated to restoring our freshwater, wetland, forest and marine ecosystems, promoting the transition to become ‘nature positive’.

One of the initiatives in which the firm has taken part is a freshwater conservation project in Xiadong village, Guangdong province. This project has protected freshwater resources, improved the living environment, boosted the local economy and contributed to rural revitalisation.

In response to the national carbon peak and neutrality goals (the ‘dual carbon goals’), we are focusing on reducing emissions from our own operations by taking active measures, while collaborating with our business partners to decarbonise along our value chain. For example, our new KAMPUS office in Shanghai has integrated green, low-carbon and human-centred design concepts.

The new office manages energy efficiency, carbon emissions and other indicators in an effective way, offering an environmentally-friendly and comfortable workplace.

The power of collective impact

For an ambition to come true, everyone needs to participate and take action. At KPMG China, our people are our most important asset. We recognise the importance of cultivating an extraordinary culture for our people. As such, we have been committed to developing and retaining talented individuals and continue to invest in them. We do this through building a platform for our people to thrive, not only in their career growth but personal development. Our commitment to inclusion, diversity and equity helps to cultivate an environment for our people to come as they are, enabling them to unleash their potential. KPMG China takes pride in the substantial representation of women in leadership positions, which reached 44% in FY23.

Committed to our core value of ‘For Better’, KPMG China is actively embracing our social responsibilities. We’re harnessing our resources and expertise, joining forces with our people, non-profits, and forward-thinking businesses to explore new approaches in three critical areas: Advancing Sustainability, Lifelong Learning, and Promoting Inclusive Development. Our aim is to narrow inequalities, tackle climate change, and cultivate trust in our communities, all with an eye toward a brighter future. We encourage our people to actively participate in volunteering. In FY23, more than 1,700 of our people leveraged their professional expertise and skills and dedicated over 16,700 hours to volunteer activities organised by the firm related to education, environmental protection, diversity and inclusion, which reached over 91,000 direct beneficiaries to support those in need and deliver a positive impact on society.

Through this report and the stories of our people, we would like to take this opportunity to pay tribute to those whom have demonstrated their commitment to our Values, their hard work and their efforts to put OIP into action. We would also like to thank our clients and other external stakeholders for their continued support for our effort to deliver on the firm’s OIP commitments. Through collaboration we can make a greater impact in this challenging yet extraordinary journey.

Joining forces for a sustainable future

Through OIP, we persistently integrate ESG principles into everything that we do, making ESG a watermark running through our organisation. Upholding our unwavering purpose to inspire confidence and empower change, we believe that by collaborating alongside our stakeholders, we can create value for society and contribute to the vision of building a beautiful China with a shared and sustainable future.

Honson To
Chairman
KPMG Asia Pacific and China