Working together for a better future

Everybody is impacted by today’s challenges. China has put forward its carbon goals to demonstrate its commitment towards addressing climate change, with emissions expected to peak in 2030 and carbon neutrality to be achieved in 2060. This focus on sustainable development has led to ESG being front and centre among many businesses in China.

As a leading firm in the industry, KPMG supports sustainable development and strives to lead by example, having committed to becoming a net-zero carbon organisation by 2030. Our Impact Plan (OIP) underlines our determination to push forward positive change through our people, clients and communities. I am delighted to share the progress we have made in FY2021 across the four key pillars: Planet, People, Prosperity and Governance.

• Planet: As an advocate for sustainable development, KPMG China puts a lot of effort into addressing climate change. We announced our global intention to become a net-zero carbon organisation by 2030 and in FY2021 we achieved the first phase of our target by purchasing 100% renewable energy through renewable energy certificates. Carbon reduction requires a collaborative effort, so in addition to reducing our own climate impact, we will strive to help the stakeholders along our value chain reduce their emissions. Furthermore, we have been working with different non-profit organisations (NPOs) to improve biodiversity and restore the ecosystem through our nature conservation programmes.
• People: Our people are our most valuable asset. By working together and sharing our thoughts with our people, we believe we can create an inclusive workplace with shared value to foster sustainable development.
  
  Millennials and Gen Z make up an increasingly large part of our workforce. To make sure our younger colleagues can freely express their thoughts on the firm’s future direction, we established the Next Generation Council to encourage innovation and creativity in our workplace. In our people agenda, we have also put strong emphasis on several key topics such as female leader empowerment, talent attraction and retention. We continue to create a people-centric, flexible and innovative working model to strengthen diversity and harmony in our workplace.
• Prosperity: I am excited that KPMG has made bold strides in the ESG space globally by announcing its USD 1.5 billion multi-year programme to accelerate global solutions for ESG issues. At KPMG China, we continue to make substantial investments in our ESG service offerings to help our clients fulfil their ESG visions.
  
  The employment market is facing more severe challenges resulting from the new normal created by the pandemic. Solving employment problems effectively is key to maintaining social stability and sustainable economic development. At KPMG China, we increased our workforce to over 13,000 in FY2021 and aim for a headcount of 20,000 people over the next three years. Our expansion through job creation not only creates direct economic value for our firm, but also fosters prosperity in the community. KPMG China continues to support our communities to improve social mobility for underprivileged groups. I am very proud to announce that our firm invested nearly RMB 24 million in our community in FY2021, providing nearly 11,000 pro bono audit hours and over 3,600 volunteer hours.
• Governance: The concept of a low-carbon economy is bringing systematic change to every business and company in light of China’s carbon neutrality goals. To improve our firm’s ESG performance, we have improved our ESG governance structure even further. Led by our Head of Corporate Affairs, we set up the OIP governance structure as we look to improve our ESG performance and amplify the impacts made by our firm. To create value for our clients, we have also appointed a Head of ESG to oversee our external ESG strategy and client services. With a seat on the board, the Head of ESG helps set the tone at the top and drive strategic discussions on ESG issues.

We believe sustainability is key to our future. With ESG as the watermark running through our business, we will continue to live up to our values and lead by example. Together, we strive to create a better, more sustainable future for our people, clients and communities.