With over 2,000 suppliers, the impact and reach we can have if we harness our influence is vast. Our Responsible Supply Chain Programme is ESG-focused and backed by science-based targets. It drives improvements across each of our four strategic pillars, which are:
By encouraging our supplier organisations, we help them to become more transparent on their ESG performance and to make commitments to improving this performance. To support our suppliers on this journey, we share our own insights on best-practice and run training sessions too.
Climate and decarbonisation
When setting our own science-based targets, we made a commitment to significantly reduce the carbon impact of our supply chain. Our supply chain accounts for a significant proportion of our firm’s environmental footprint, and we know we have a responsibility to help our suppliers on their journey and work collaboratively with them to share best-practice.
We ask our suppliers to report their carbon data, helping us to measure, and encourage, progress.
To help share best-practice, we facilitate workshops and webinars for organisations in our supply chain. These cover topics such as the importance of reducing emissions; what good reporting looks like; and the approach to setting science-based targets.
Activities in FY25:
- Refreshed our approach for capturing carbon data from suppliers, adopting the KPMG International Decarbonisation Survey for the first time
Nature, waste and lifecycle management
We’re committed to reducing the environmental impact of our offices by avoiding, and where possible, eliminating the volume of materials wasted. Globally, KPMG has made a commitment to understanding and improving our impact on nature too.
While we may not have the largest impact compared to other sectors, much of our impact is associated with our value chain. This is why we work closely with our suppliers in these areas, collaborating to find innovative solutions.
Inclusive and equitable supply chain
Living wage
We encourage our suppliers to pay the Living Wage rate or above and pursue accreditation and we are proud that two of our colleagues are members of the Living Wage Foundation Advisory Council. As an accredited Living Wage Employer, we require that sub-contracted and supplier staff working in KPMG offices are paid the applicable Living Wage or London Living Wage by their employers.
Inclusion, Diversity and Equity
We work with our strategic suppliers to create and promote inclusive environments. Our Responsible Supply Chain tender questions and Supplier Code of Conduct reiterate our expectation on suppliers to promote inclusion, diversity and equity within their businesses.
Integrity and transparency
Modern slavery
KPMG operates in the professional services industry which is not typically considered a high-risk sector for labour-related breaches, given most of our people are highly skilled, permanently employed professionals. However, we remain acutely aware that risks can arise across our operations and value chains and, as such, we recognise that we have a critical role to play in identifying and mitigating potential harm to people.
In May 2025, specialist modern slavery training was provided to our sourcing and supplier management teams, to support our identification, management, and prevention of modern slavery risks. In FY26, firmwide modern slavery training will also be provided to all KPMG employees, members, and contingent workers
The majority of our procurement spend resides in the UK and the US. According to the Global Slavery Index, these geographies have a lower prevalence ranking for modern slavery, however we are aware that slavery-like practices can, and do, occur in the UK and US in certain higher risk categories. When assessing modern slavery risk in our supply chain, we also consider those industries where there is a material reliance on base-skilled labour (i.e., roles where qualifications, preparation or material training is not required), manual labour, and vulnerable worker populations including temporary, seasonal, and migrant workers. High-risk suppliers, based on sector, jurisdiction, and adverse media, are asked to complete a modern slavery self-assessment questionnaire (“SAQ”).
Supplier Code of Conduct
Our Supplier Code of Conduct, which is underpinned by the United Nations Global Compact, describes the expectations we have of our suppliers to conduct business in a responsible manner. It is incorporated in our standard supplier terms and purchase orders. Suppliers are required to align their guidelines, policies, and practices with these expectations and to communicate and enforce the Code of Conduct provisions throughout their organisations and supply chains.
If a supplier falls short of our standards, we will engage with them and provide recommendations on how they can improve their policies and processes. If a supplier fails to implement remediation processes within an acceptable timeframe, we will consider terminating the relationship.
Risk assessment and due diligence
As part of strategic tenders, suppliers are requested to complete the Responsible Supply Chain Questionnaire. Suppliers’ responses are reviewed and scored to assess the controls they have in place to mitigate potential risk, including of modern slavery.
Our suppliers, across all categories of spend, are risk-assessed into high, medium or low risk categories. Higher risk suppliers are subject to additional due diligence.
Training and development
Members of our sourcing and supplier management teams all have access to our dedicated Responsible Supply Chain Collaboration Site.
Here, colleagues have access to resources which can help them to understand the alignment of our approach with our business strategy and our ESG commitments (Our Impact), and how their role supports the achievement of these. We also run ad hoc training sessions covering key policies and processes, and our plans for evolving these in the future.
Modern slavery
KPMG operates in the professional services industry which is not typically considered a high-risk sector for labour-related breaches, given most of our people are highly skilled, permanently employed professionals. However, we remain acutely aware that risks can arise across our operations and value chains and, as such, we recognise that we have a critical role to play in identifying and mitigating potential harm to people.
In May 2025, specialist modern slavery training was provided to our sourcing and supplier management teams, to support our identification, management, and prevention of modern slavery risks. In FY26, firmwide modern slavery training will also be provided to all KPMG employees, members, and contingent workers
The majority of our procurement spend resides in the UK and the US. According to the Global Slavery Index, these geographies have a lower prevalence ranking for modern slavery, however we are aware that slavery-like practices can, and do, occur in the UK and US in certain higher risk categories. When assessing modern slavery risk in our supply chain, we also consider those industries where there is a material reliance on base-skilled labour (i.e., roles where qualifications, preparation or material training is not required), manual labour, and vulnerable worker populations including temporary, seasonal, and migrant workers. High-risk suppliers, based on sector, jurisdiction, and adverse media, are asked to complete a modern slavery self-assessment questionnaire (“SAQ”).
Supplier Code of Conduct
Our Supplier Code of Conduct, which is underpinned by the United Nations Global Compact, describes the expectations we have of our suppliers to conduct business in a responsible manner. It is incorporated in our standard supplier terms and purchase orders. Suppliers are required to align their guidelines, policies, and practices with these expectations and to communicate and enforce the Code of Conduct provisions throughout their organisations and supply chains.
If a supplier falls short of our standards, we will engage with them and provide recommendations on how they can improve their policies and processes. If a supplier fails to implement remediation processes within an acceptable timeframe, we will consider terminating the relationship.
Find out moreRisk assessment and due diligence
As part of strategic tenders, suppliers are requested to complete the Responsible Supply Chain Questionnaire. Suppliers’ responses are reviewed and scored to assess the controls they have in place to mitigate potential risk, including of modern slavery.
Our suppliers, across all categories of spend, are risk-assessed into high, medium or low risk categories. Higher risk suppliers are subject to additional due diligence.
Training and development
Members of our sourcing and supplier management teams all have access to our dedicated Responsible Supply Chain Collaboration Site.
Here, colleagues have access to resources which can help them to understand the alignment of our approach with our business strategy and our ESG commitments (Our Impact), and how their role supports the achievement of these. We also run ad hoc training sessions covering key policies and processes, and our plans for evolving these in the future.
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