We are pleased to launch KPMG China’s fifth annual ESG report, ‘Our Impact Plan FY24’. This report outlines our achievements and progress for FY24 across four key pillars: Governance, People, Planet, and Prosperity.
At KPMG China, we view OIP not merely as a report, but as an integral part of our core strategy. We are committed to making ESG a watermark running through our organisation and collaborating with key stakeholders to foster a more sustainable and resilient future.
Chairman’s message
On behalf of everyone at KPMG China, it is my pleasure to welcome you to our fiscal year 2024 (FY24) Our Impact Plan (OIP) report. This year marks the release of our fifth annual environmental, social and governance (ESG) report and a key milestone towards our 2030 climate journey to net-zero.
We are now entering a special period in which the 14th Five-Year Plan is coming to an end, and the torch of development will be passed to the 15th Five-Year Plan. We are also at a critical stage in the effort to build China into a modernised socialist country and prepare for the achievement of the Second Centenary Goal. The year 2025 also marks the 20th anniversary of the introduction of the ‘lucid waters and lush mountains are invaluable assets’ concept. Looking back at our ESG reports over the past five years, we can see a clear reflection of how our environmental, social, and governance efforts have aligned with the country's development. This includes actively embracing green development and responding to the ‘dual carbon’ goals by promoting the sustainable use of resources and reducing carbon emissions. We have also prioritised the growth and development of our people, fostering an inclusive, diverse, and equitable culture. Furthermore, we have actively contributed to our communities to help build a brighter future, all while strengthening our corporate governance in pursuit of our goal to be the most trusted and trustworthy professional services firm.
Chairman’s message
On behalf of everyone at KPMG China, it is my pleasure to welcome you to our fiscal year 2024 (FY24) Our Impact Plan (OIP) report. This year marks the release of our fifth annual environmental, social and governance (ESG) report and a key milestone towards our 2030 climate journey to net-zero.
Over the past five years, the world has faced unprecedented challenges and uncertainty, with complex geopolitical dynamics, and increasingly severe changes in climate causing frequent natural disasters. But out of crisis comes opportunity. With the official release of the Corporate Sustainability Disclosure Standards in China, the country has begun to develop a unified system for sustainability disclosures. At the same time, as new technologies such as big data and artificial intelligence emerge and reshape the business landscape, they are being integrated with different industries at an accelerated pace and gradually becoming new drivers of development.
Over the years, we have stayed true to our Purpose, fully aware that we have the capabilities and responsibility to use our solutions and services to help our clients, communities and stakeholders address the many challenges facing our planet and society. With a commitment to quality, ethical conduct and professional prudence, KPMG China is constantly striving to empower sustainable development and help its clients create long-term value. In our effort to actively explore the forefront of innovation, we have launched a number of new technological applications to make sure our people are future-ready and provide our clients with more forward-looking, intelligent, targeted solutions that will help them succeed in the future.
We are now entering a special period in which the 14th Five-Year Plan is coming to an end, and the torch of development will be passed to the 15th Five-Year Plan. We are also at a critical stage in the effort to build China into a modernised socialist country and prepare for the achievement of the Second Centenary Goal. The year 2025 also marks the 20th anniversary of the introduction of the ‘lucid waters and lush mountains are invaluable assets’ concept. Looking back at our ESG reports over the past five years, we can see a clear reflection of how our environmental, social, and governance efforts have aligned with the country's development. This includes actively embracing green development and responding to the ‘dual carbon’ goals by promoting the sustainable use of resources and reducing carbon emissions. We have also prioritised the growth and development of our people, fostering an inclusive, diverse, and equitable culture. Furthermore, we have actively contributed to our communities to help build a brighter future, all while strengthening our corporate governance in pursuit of our goal to be the most trusted and trustworthy professional services firm.
From our initial exploration of ESG to today's systematic and in-depth practices, we have witnessed not only our own progress in sustainable development, but also the growing attention and actions of society in this important area. Going forward, we will continue to forge ahead and take concrete actions to fulfil our ESG commitments, and work hand-in-hand with our stakeholders to usher in a new chapter of sustainable development.
Honson To
Chairman
KPMG Asia Pacific and China
Our commitments and highlights at a glance
Our commitments
Purposeful business
- Always act with a clear purpose
- Lead the profession in audit quality
- Drive a responsible tax practice
Acting transparently with integrity and accountability
- Act lawfully, ethically and in the public interest
- Work against corruption in all its forms, including extortion and bribery
Human rights
- Respect human rights
Our highlights
Fully implemented the CARE Ethical Decision-Making framework to strengthen our ethical and collaborative culture
Promoted our Trusted AI framework to help use AI solutions in a safe, responsible and ethical manner
Achieved a 100% completion rate of our anti-corruption training by our board and executive committee members
Launched
‘Supplier Code of Conduct’
to enhance supply chain management
Our commitments
Inclusion, diversity and equity
- Have an inclusive culture built on trust
- Advocate for equal opportunity
- Foster an educated, empathetic workforce
Health and well-being
- Protect the health of our people, both physically and mentally, and enable them to be effective and productive
Continuous learning
- Develop a continuous learning culture
Our highlights
Progress in advancing gender equality:
• 46% of leadership1 were women ( ↑ 2% from FY23)
• 60% of management2 were women (↑ 2% from FY23)
Established the IDE Council in Hong Kong SAR, incorporating Inclusion, Diversity and Equity into business planning
The second cohort of the Next Generation Council successfully graduated, contributing ideas and actions to Our Impact Plan
Continuously optimised office facilities by setting up baby care rooms in several offices to create an inclusive office environment
Delivered an average of 78 training hours for full-time employees, with a total of nearly 1,160,000 hours covering leadership development, digital skills and ESG
1 Partners and directors
2 Senior managers and managers
Our commitments
Decarbonization
- Achieve net-zero carbon emissions by 2030(KPMG Global goal)
- Source 100% renewable electricity through purchasing renewable energy certificates (RECs) and sourcing renewable energy supplies
- Report our climate performance
- Drive behavioural change to improve environmental practices in our workplace
Climate risk
- Give financial markets, clients and our leaders clear, comprehensive, high-quality information on the impacts of climate change
Nature and biodiversity
- Understand our impact on nature and biodiversity, and make positive improvements
Our highlights
Net greenhouse gas emissions: 73,721 tCO2e ( ↓7.9% vs FY23)
Continued to fulfil our 100% renewable electricity commitment first made in FY21
Increased the proportion of office floor area located in buildings with green and/or wellness-related certifications to 90%
Launched a new travel booking platform which reflects emissions to encourage our people to make more eco-conscious travel choices
Launched the first GBA ESG Biodiversity Corporate Recognition Award to promote biodiversity leadership in the region
Rolled out the ‘Protect the Future – Action for the Planet’ volunteer programme to engage staff in advancing environmental causes
Our commitments
Contribute to the economic development of China
Support the communities in which we operate
Our highlights
27 representatives from the firm served in the national and local People's Congresses and the Chinese People’s Political Consultative Conference (CPPCC), contributing their professional expertise to the high-quality development of the country
Continue to invest in our communities, upholding our core Value ‘For Better’:
- Contributed ~RMB 25.4 million in financial value
- Reached 98,000+ direct beneficiaries
- Devoted 15,800+ volunteer hours
- Contributed 10,400+ pro bono professional service hours
Launched the KPMG Smart Classrooms project in 24 rural schools, fostering digital literacy and bridging the digital gap3
Carried out diversified capacity building and training, with a focus on rural revitalisation, empowering new rural collective economic organisations
3 Data as of 31 December 2024
Planet
Reducing our impact on the environment to build a more sustainable and resilient future
Prosperity
Making a positive social and economic impact and driving good corporate citizenship
“For many years, KPMG China has embedded ESG principles into our practices. Driven by long-term value creation and through OIP-related initiatives, we have turned our ESG commitments into tangible results. Looking ahead, we will continue to uphold our responsibility and accountability, and actively engage with employees, clients and stakeholders. By advancing new quality productive forces and empowering high-quality development, we are dedicated to co-creating a sustainable and promising future.”
Wilson Pang
Head of Our Impact Plan
Head of the GBA Strategy and Development Office
National Philanthropy Steering Committee Member
KPMG China
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Our key ESG focus
Based on our materiality assessment, the 16 existing material topics remain relevant to our business and stakeholders. We have only refined three topics for better clarity and to reflect the evolving strategic priorities. The changes are as follows:
• ‘Relevant, quality services in the public interest’ has been renamed to ‘High-quality client services’.
• ‘Sustainable supply chain management’ has been revised to ‘Responsible supply chain’.
• ‘Technology and innovation’ has been expanded to ‘Technology, innovation, and AI’.
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1. Purpose, culture and values
Our Purpose – to inspire confidence and empower change – guides our way of doing business. Our corporate culture and values help drive consistency in how we make our decisions every day.
2. High-quality client services (updated)
Providing high-quality client services that align with the public interest allows us to create a positive impact for our clients and other stakeholders.
3. Ethics, integrity and independence
By acting with integrity and maintaining independence, we become trustworthy and shape how we are viewed by the world.
4. Transparency and accountability
We maintain transparent and open communication with our stakeholders. We hold ourselves accountable for our actions.
5. Information protection
Cybersecurity and data privacy represent significant risks if they are not closely monitored. Protecting information is fundamental to every service that we offer to our clients.
6. Public policy engagement and alignment
We actively participate in the public policy process, fostering trusted relationships with government authorities and regulators through sharing recommendations and insights that address societal and industry challenges. Our strategies and efforts are closely aligned with national policies and directions.
7. Responsible supply chain (updated)
We commit to sourcing goods and services in a responsible, fair and sustainable manner, and we expect our suppliers to operate lawfully, professionally and with fair practices that integrate respect for basic rights, business ethics and the environment.
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8. Talent attraction, development and retention
Attracting, nurturing and retaining our people is key to the sustainability of our business. Employment conditions are crucial to our people’s satisfaction at work.
9. Staff health and well-being
Taking care of our people’s health and well-being continues to be a top priority of our people agenda.
10. Inclusion, diversity and equity
Fostering an inclusive, diverse and equitable workplace encourages open communication and allows our people to flourish, regardless of individual differences.
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11. Climate action
To support our global climate goals, we strive to decarbonise our operations and work with business partners to reduce emissions across our value chain.
12. Circularity and sustainable operations
Integrating circular economy principles into our operations optimises resource use efficiency, curbs consumption and improves end-of-life treatment, reinforcing our commitment to operational sustainability and advancing our climate goals.
13. Nature and biodiversity
Business activities contribute to nature loss directly and indirectly. Protecting and restoring nature and biodiversity helps to reduce carbon emissions and aligns with our net-zero ambition.
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14. Financial and brand resilience
Ensuring healthy financial performance and a positive brand image is essential for building a resilient business in the long run.
15. Technology, innovation, and AI (updated)
Embracing the benefits of technology, innovation and artificial intelligence gives our business a cutting edge and helps address social and environmental issues.
16. Impactful community initiatives
Providing support through philanthropic investment, volunteering and pro bono services, and collaborating with nonprofit organisations, has a positive impact on our communities.
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“As an organisation deeply committed to sustainable development, our efforts are grounded in the belief that true progress is made when corporate responsibility and national vision work hand in hand, enabling us to drive impactful, lasting change. By aligning our ESG strategy with key national policies, we not only contribute to the country’s long-term goals but also demonstrate leadership in fostering a sustainable business ecosystem. ”
Tracy Yang
Head of Corporate Affairs
Senior Partner, Eastern and Western Region
KPMG China
Report Hub
Download our report to learn more about KPMG China's Our Impact Plan for this year and previous years.
