Planet

Our climate strategy takes into account the key contributors to carbon emissions within our operations, aiming to halve our global emission by 2030 compared to our FY19 baseline. This ambition drives our efforts and shapes our decision-making processes.

To ensure our approach remains adaptive and effective, we conduct an annual scenario analysis of our carbon performance with the support of our ESG Advisory team, which allows us to refine our strategies and ensure accountability. A vital element of our approach is the implementation of an internal carbon price (ICP), which guides our resource allocation and encourages sustainable practices across the organisation.

We acknowledge the significant challenges posed by our two largest sources of emissions: business travel and purchased goods and services. Tackling these areas is critical to realising our net-zero ambition. Through targeted initiatives and resource commitments, we aim to catalyse impactful change and address climate challenges. Our approach reflects our dedication to environmental responsibility and our determination to contribute positively to a sustainable future.

Our annual Global Climate Response (GCR), which is aligned with the Greenhouse Gas Protocol, highlights our ongoing commitment to transparent, science-based reporting and helps us maintain disciplined oversight of our emissions profile.

To further strengthen the rigour and credibility of our disclosures, and to support KPMG’s global plan to work towards a hybrid approach to ESG assurance over key selected metrics (including decarbonisation), we are working with our internal professional team to help conduct an ESG assurance readiness assessment. This will be based on FY24 data, enabling us to identify gaps and areas for enhancing data reporting processes. 

Over the past year, our focus has remained on embedding long-term decarbonisation strategies throughout our operations and value chain, and we have continued to make progress in managing our carbon footprint. In FY24, our total net emissions decreased to 73,721tCO₂e, a 7.9% decrease from FY23. While FY24 has seen a reduction in overall emissions, we remain committed to further reducing our emissions.

Looking ahead, we will continue to improve collaboration with our stakeholders across the value chain and leverage data-driven insights to accelerate progress. In addition, the ESG assurance readiness assessment mentioned above will help better align our reporting with global best practices, enhancing transparency and accountability.

Since FY21, we have upheld our commitment to sourcing 100% renewable electricity through the purchase of renewable energy certificates (RECs). In FY24, we continued to purchase International Renewable Energy Certificates (I-RECs).       

Looking ahead, we are optimistic about the growth of the green electricity market in China and are actively exploring opportunities to purchase Green Electricity Certificates (GECs) to further support national renewable energy initiatives.

Launched on 1 October 2022, our internal carbon price (ICP) initiative plays a crucial role in advancing our decarbonisation efforts. By applying the ‘polluter pays’ principle, a fee is charged to responsible departments based on emissions from business travel, including air travel, rail travel and hotel accommodation.

The ICP effectively integrates carbon considerations into our business decisions, and collected funds are directed towards impactful decarbonisation projects. We have established several eligible spending categories, including decarbonisation solutions, net-zero solutions and internal behavioural change programmes, all of which support our sustainability commitment. To oversee the allocation and effectiveness of these funds, we have implemented a governance mechanism that reviews the usage of ICP funds annually, so as to help drive emissions reduction.

As a people-centric business, we recognise the value of in-person collaboration, while remaining aware of the environmental impact of our travel. To address this, we have implemented initiatives that encourage more sustainable travel choices, allowing us to maintain strong connections while being mindful of our carbon footprint.

In 2023, we introduced our Green Routes initiative, which prioritises rail travel for shorter distances instead of air travel. In addition, we advocate for virtual meetings whenever feasible, providing our people with the tools to reduce unnecessary travel and lower carbon emissions. 

In 2024, we launched a new online travel booking tool – a digital platform that simplifies the booking process and displays the estimated carbon footprint of each trip. By raising awareness of the environmental impact of travel, we aim to empower employees to make greener travel decisions that align with our commitment to sustainability.

Through these efforts, we are actively working to reduce emissions associated with business travel, while fostering collaboration that can drive our success.

Our sustainable supply chain strategy aims to embed sustainability into our existing procurement processes. This involves monitoring and enhancing the sustainable performance of our suppliers, while cultivating stable relationships that foster long-term, sustainable value. 

To implement this strategy, we have a dedicated Global Procurement ESG Working Group that works closely with key stakeholders at the global and local member firm levels to assess sustainability risks in procurement and identify key priorities. This group has developed clear, defined objectives, which guide the implementation of our action plan and enable effective performance measurement.

In addition to promoting circularity to transform our own operations, we are also extending our circularity efforts to the wider community. By donating retired laptops to non-profit organisations, we are able to promote the circular economy while also providing educational support for school children or those in need. Remaining laptops, as well as monitors, are sent to resellers, helping ensure they have a second life. 

In September 2024, ‘KPMG Green IT Classrooms’ were set up in Malipo, Yunnan province to provide digital infrastructure and support the digitalisation of three rural schools. For this project, KPMG donated 150 second-hand laptops, as well as funds received from recycling office furniture, to Shanghai Zhonggu Youth Development Centre, which helped build the green IT classrooms. KPMG volunteers also conducted school missions and taught tailored courses to enhance the rural students’ digital literacy and help them develop future-ready skills. This initiative demonstrates our dual commitment to promoting a circular economy while supporting our 10by30 strategic goal.

In October 2024, KPMG globally signed on to be an adopter of the Taskforce on Nature-related Financial Disclosures (TNFD) to align with best practices in the industry and to help deliver a nature positive future together with key stakeholders. 

At KPMG, we are dedicated to protecting nature and biodiversity, recognising the essential role ecosystems play in the planet’s health and in our business sustainability. We mobilise our resources for projects that preserve and restore ecosystems, working collaboratively with organisations such as the Mangrove Conservation Foundation (MCF) and the World Wide Fund for Nature (WWF), among others. 

Biodiversity is the foundation of ecosystem health and sustainability. To recognise the business community’s efforts in promoting environmental stewardship and biodiversity conservation, we launched the Guangdong-Hong Kong-Macao Greater Bay Area ESG Biodiversity Corporate Recognition Award, in partnership with multiple renowned organisations, including the One Planet Foundation, MCF, the Guangdong Provincial Academy of Environmental Sciences, the Shenzhen Finance Institute of the Chinese University of Hong Kong (Shenzhen), the Guangzhou Emissions Exchange and Hong Kong Commercial Daily.

By recognising outstanding enterprises in biodiversity conservation, the award aims to leverage the influence of corporate pioneers to establish an industry benchmark and ultimately encourage corporate leadership and innovation in biodiversity initiatives. We hope that more enterprises will join forces to promote ecological and environmental protection in the GBA, and even across the country.

The award recognition ceremony took place in October 2024, aligning with the celebration of the ‘Franco-Chinese Month of the Environment – Prospering by the Water’ event, ‘The 7th Futian Spoonbill Festival’, and ‘The 4th Mountain-Sea Vistas & Natural Shenzhen Life Festival’, and highlighted the importance of collective action in the effort to nurture our planet’s ecosystems.

Building on the success of the two-year ‘Protecting Shenzhen Bay’ ecosystem restoration programme launched in 2020, we are proud to announce the ‘Green Bay Area Pioneer Action – Habitat Enhancement of Futian Mangrove Ecological Park’ project, which was launched in September 2024 in partnership with MCF. In this new phase of our partnership, we aim to promote ongoing local ecological protection in the GBA and enhance the health of the mangrove ecosystems by improving the habitats of local wetland organisms, especially in Futian Mangrove Ecological Park. 

On 6 November 2024, an agreement to establish the world’s first International Mangrove Center was officially signed in Shenzhen. In parallel, the Shenzhen local government authorised the ‘Green and Beautiful Futian Special Fund’ initiative, which was launched by MCF. KPMG China was part of the first group of companies to support the initiative, and our continued collaboration with MCF reflects our shared vision of fostering biodiversity and creating a vibrant, sustainable environment for the region. Alongside habitat enhancement, the initiative also includes activities to raise environmental awareness among employees and the public. Furthermore, we plan to harness the experience gained from this project and apply it to other protected areas across the GBA.

At KPMG, we are deeply committed to understanding and addressing the evolving risks and opportunities posed by climate change. 

As an active participant in the Task Force on Climate-related Financial Disclosures (TCFD), KPMG closely aligns its work with industry best practices for transparent reporting on climate-related financial risks. On behalf of KPMG globally, KPMG International has published our ‘Climate Risk Report’ in line with TCFD recommendations. This report provides a detailed examination of our processes for identifying, evaluating and managing climate risks and opportunities. It highlights our disciplined approach to understanding how climate change impacts our operations, enabling us to respond proactively to both risks and emerging opportunities.

With the TCFD’s integration into the International Financial Reporting Standards (IFRS) and the International Sustainability Standards Board (ISSB), we will continue to advance our disclosures. IFRS S2 Climate-related Disclosures underscores the critical importance of providing clear, high-quality information on climate-related risks – something we remain committed to delivering. Globally, KPMG also submits annual disclosures on our collective performance to CDP (formerly the Carbon Disclosure Project), further emphasising our commitment to transparency in climate-related performance.