KPMG China’s Our Impact Plan (OIP) highlights our environmental, social and governance (ESG) commitments and progress across four key pillars: Planet, People, Prosperity and Governance. OIP demonstrates the firm’s commitment to greater transparency and accountability for its actions and impact on society.
This is a time of challenges – but it is also a time of hope. By working together and channelling our efforts, we can create a promising future.
The combined effects of a rapidly changing world and a global pandemic have resulted in increasing uncertainty and instability. Biodiversity loss, worsening desertification and frequent extreme weather events continue to reveal deep-seated conflicts between mankind and nature.
At KPMG China, we have an enduring commitment to create a world where everyone is safe, can grow together and have a future of shared prosperity.Read more
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.
“Our Impact Plan includes more than just a static ESG report. It is an evolving, living initiative which captures our ESG commitments and everyday actions so that we can truly lead by example. It helps us become more transparent and accountable for the impact we have on society.”
Head of Corporate Affairs
Senior Partner, Eastern and Western Region
Our key ESG focus
To help us better allocate our resources to tackle the most important ESG issues and mitigate the associated risks, we conducted a materiality assessment to determine the environmental and social topics that matter most to our business and stakeholders.
Based on recognised frameworks and guidance, we have refined our five-part materiality test, which assesses the following five categories:
- Direct short-term ESG impacts
- Policy-based performance
- Peer-based norms
- Societal norms
- Stakeholder behaviour and concerns.
The five-part materiality assessment was used to identify 12 material topics in FY2020, with their outlines described as below. To make sure these material topics are still in line with the latest business landscape, they were reviewed by our chairman and Executive Committee members and confirmed to remain valid for FY2021.
As a steward of our shared planet, KPMG China strives to support its global climate goals and reduce our carbon footprint, as well as address other environmental issues such as waste reduction and responsible consumption/procurement.
Talent attraction, development, and retention
Attracting, nurturing, and retaining our staff is key to our business sustainability. Employment conditions are crucial to our people’s satisfaction at work.
Staff health and well-being
Taking care of our people’s health and well-being continues to be a top priority on our people agenda.
Inclusion, diversity and equity
Fostering an inclusive, equitable and diverse workplace encourages open communication and allows our people to flourish, regardless of individual differences.
Financial and brand resilience
Ensuring healthy financial performance and a positive brand image is essential for building a resilient business in the long run.
Relevant quality services in the public interest
Providing services that align with the public interest allows us to create a positive impact for our stakeholders.
Technology and innovation
Embracing the benefits of technology and innovation gives our business a cutting edge and helps address social and environmental issues.
Impactful community initiatives
Supporting our community through philanthropic investment, volunteering and pro bono services, and collaborating with non-profit organisations helps us work towards mitigating key environmental and social risks and developing innovative, sustainable solutions that have a lasting impact.
Purpose, culture and values
As a professional services firm, 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.
Ethics, integrity and independence
By acting with integrity and maintaining independence, we become trustworthy and shape how we are viewed by the world.
Transparency and accountability
We maintain transparency and open communication with our stakeholders. We hold ourselves accountable for our actions.
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.