As part of our 10-year environment strategy, back in 2020 we set ambitious environmental targets aligned with the 1.5-degree pathway and approved by the Science Based Targets initiative (SBTi). In 2025, we set a long-term target to achieve net zero emissions by 2050 and updated and re-validated our near-term science-based targets (SBTs) in line with SBTi requirements. These targets required bold commitments around our energy usage, our supply chain and how our people travel. Our SBTs are outlined below:
Progress against commitments
- Reducing scope 1 & 2 emissions
- Reducing supplier emissions
- Reducing travel emissions
We have achieved 100% renewable electricity across our estate and we have installed solar panels on the roof of our Canary Wharf office.
We are reducing gas use across our estate through efficiency upgrades and switching to electricity where possible. We regularly review renewable gas options.
A CO2e cap has been in place for new cars for many years now already, which supports our interim milestone to phase out all existing and old petrol and diesel cars and replace them with hybrid or electric cars by September 2027 (subject to the UK Government having invested sufficiently in the infrastructure required to support EVs).
In FY25 we refreshed our approach for capturing carbon data from suppliers, adopting the KPMG International (KPMGI) Decarbonisation Survey for the first time. We also continue to welcome suppliers to disclose under CDP. Across the UK and KPMGI, 189 suppliers were requested to share their carbon emissions data, with over 100 of those being UK suppliers.
We are continuing to monitor progress to our travel target in line with our target year of 2030. To support this, we encourage colleagues to align with our SMART travel policy and traveller security and safety programme.
Our progress
We work collaboratively across the business to reduce our direct and indirect carbon footprint, leveraging our internal expertise and encouraging cross-functional innovation and collaboration.
To drive reduction in resource use and greenhouse gas (GHG) emissions, we firstly focus on driving efficiencies across our direct operations, looking at opportunities to optimise and upgrade our equipment across our offices, our technology and our ways of working. From commuting to work or travelling as part of a client’s engagement, we look at opportunities to reduce our footprint while providing the best services to our clients. We also ensure that our suppliers do the same and engage regularly with them to ensure our supply chain decarbonises with us.
We continue to manage and oversee environmental issues through our governance forums: the Environment Working Group (EWG) and the Environment Steering Committee (ESC), which report to the Management Committee. The ESC is composed of the Group Chief Financial Officer, Group Digital Chief Operating Officer (COO), Markets Deputy COO, Head of Sustainable Supply Chain & Travel and the Head of Corporate Responsibility & Sustainability and is chaired by the Corporate Services COO – UK.
These groups aim to increase accountability and create a direct line of reporting on environmental and climate matters.
Our pathway to net zero
- FY25
- FY24
- FY23
- FY22
- FY21
- FY20
Refreshed and re-validated our science-based targets via SBTi.
Revised our climate-related risks and opportunities, and updated our climate scenario analysis to account for changes in our business, including the merger of KPMG UK and KPMG Switzerland.
Continued to reduce our gas use, including through transitioning all our Canada Square kitchen facilities to electric only.
- Formed two dedicated environmental governance forums, the EWG and ESC.
- Embedded climate considerations, including findings from climate scenario analysis, into financial and business planning.
- Updated the definitions of our 11 principal risks to include climate and ESG.
- Established interim milestones up to 2030 for our phasing out of diesel/petrol company cars, subject to the UK Government having invested sufficiently in the infrastructure required to support EVs.
- Launched our new Responsible Supply Chain Programme which includes the two strategic pillars of “Climate and Decarbonisation” and “Nature, Waste and Lifecycle Management”.
- Refined our UK Board-level accountability on climate to ensure more oversight of key climate considerations including KPIs on environmental performance for those with related responsibilities.
- Achieved our ambition of procuring 100% renewable electricity.
- Installed solar panels in our Canada Square office.
Set our first Internal Carbon Price (ICP) to help drive a culture of climate conscious decision-making.
99% of electricity procured is renewable.
Created our in-house KPMG Climate IQ quantitative scenario analysis capability.
Launched our ACCEPT framework, a principle-led decision making framework designed to guide consistent decision-making on ESG issues across the firm.
- Launched Our Impact ESG report.
- Our award-winning Sustainable Procurement Programme has been running for over a decade. In FY21, we expanded our Programme more than doubling the number of suppliers we engage with.
- We were the first of the ‘Big Four’ to set a science-based target aligned with a 1.5°C pathway.
- Set 100% renewable energy target by 2024.
Future areas for development
We are committed to continued improvement through the following areas:
Ongoing review of our strategy and progress against our new science-based targets and scenario analysis findings. We will continue to work closely with key stakeholders, including local facilities teams, risk and responsible supply chain to assess and integrate our findings.
We will continue to work with our risk and finance functions to further integrate, upskill and adapt as climate-related risks evolve over time.
Can you put a price on carbon?
Since 2022, KPMG UK has an Internal Carbon Price (ICP) on our electricity, gas and business travel emissions. We continue to reinvest the funds we raise through our ICP in greener, low-carbon upgrades to our operations, incentivising efficiency and enabling low-carbon innovation.
An ICP is a self-imposed tax we’ve applied to the carbon dioxide emissions we produce as an organisation through our electricity and gas use, and our business travel. It effectively brings the cost of the environmental damage we cause through greenhouse gas emissions back to us as an organisation.
We follow these principles when deciding on how funds raised by our ICP should be spent:
Projects that will reduce our GHG emissions through improved efficiency in energy and waste management, reducing our business travel and engaging with our supply chain.
Investing in resource to drive continual improvement in our environment strategy, data collection and reporting methodologies.
Investment in software and technology to streamline reporting and enhance traceability, as well as technology upgrades to more energy and carbon efficient equivalents.
Research and partnership projects that support low-carbon opportunities.
We recognise that carbon pricing is a flexible approach to mitigating the impacts of climate change and is a positive step on our journey to net zero.
Key highlights of our efforts are described below
Our gas consumption has decreased by 9% since FY24, reflecting the improvements made to phase out gas use and transition to electric-only where possible. For example, in FY25 we transitioned all kitchen facilities in our Canada Square office to electric-only. We have also continued to finetune the settings on our building management system (BMS) and in FY24 replaced our boiler and water heater in our Leeds office, improving its overall efficiency and lifespan.
We continue to look for opportunities to reduce our gas consumption across our estate and have mapped out a gas reduction roadmap to 2030. In parallel, we continue to review and explore opportunities in the market to source renewable gas in the UK.
Our business travel increased this year due to targeted business needs. As a people focused organisation, in-person engagement remains an important part of how we deliver our work. At the same time, we are committed to travelling responsibly and minimising our environmental impact.
We continue to promote our Travel SMART guidance to help colleagues travel only when necessary and, when travel is required, to do so sustainably. This includes encouraging travellers to combine multiple client visits within a single trip to reduce emissions. Colleagues can also track their individual carbon footprint and access practical reduction tips through our Carbon Traveller Dashboard. The dashboard captures emissions from car, rail and air travel, as well as hotel stays. Our capability leaders receive travel reports on a regular basis, giving them visibility of travel patterns and supporting informed decision-making. We also work closely with our supply chain to provide and promote more sustainable travel options, including our green hotel programme.
Travel SMART means:
- Sustainable – minimise environmental impact when travelling
- Measurable – use the Carbon Traveller Dashboard to understand emissions
- Accountable – book early and via approved channels to manage cost, safety and improve visibility of our travel patterns
- Role Model – lead by example on our sustainability efforts
- Technology – use technology to reduce travel and ensure in-person meetings add value
We all play a role in travelling responsibly. Our Carbon Traveller Dashboard and Travel SMART policy help us make better choices to support our carbon reduction goals.
How we're engaging our people
In some of our larger offices we have Environment Champions, who are groups of likeminded colleagues with a passion for the environment. They meet and plan activities and initiatives which focus on increasing environmental engagement amongst colleagues in their office and support the Corporate Responsibility and Sustainability team to raise awareness of the firm’s environmental strategy and targets.
We have created a suite of learning offerings for our colleagues, from introductions to ESG topics through to deep dives on specific ESG areas (including climate-change) and regulations to provide upskill opportunities for the entirety of our firm.
KPMG collaborated with the Cambridge Judge Business School to produce a bespoke set of learning modules on ESG essentials. Alongside this, in-house training on ESG and ‘Our Impact’ provide context into the work KPMG as a firm are doing to reduce our environmental impact as well as adding value to society. For more of an in-depth view of certain topics, the ESG Explained Podcast Series provides a deeper dive into key ESG areas such Transition Planning, ESG Assurance, and Modern Slavery.
How we're engaging our suppliers
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 recognise that we have a responsibility to help our suppliers on their journey and work collaboratively with them to share best-practice.
Through global training initiatives, we have continued to engage with our UK suppliers to upskill them on the Importance of Reducing Carbon Emissions and Setting Science-Based Targets. We also have reference guides available to supplier managers on how they can work with their suppliers on science-based targets. For any suppliers that have been requested to report on their carbon emissions, we also evaluate their performance against our KPIs and feedback their score.
We continue to engage with our strategic suppliers as part of our Responsible Supply Chain (RSC) programme, which covers four pillars, two of which are Climate and Decarbonisation, and Nature, Waste and Lifecycle Management. To support the objectives of the RSC programme, the Responsible Supply Chain Champions also meet regularly to collaborate and knowledge share on areas across the Responsible Supply Chain programme, including Modern Slavery, diversity, sustainability reporting and our sustainability commitments.
How we're engaging our people
In some of our larger offices we have Environment Champions, who are groups of likeminded colleagues with a passion for the environment. They meet and plan activities and initiatives which focus on increasing environmental engagement amongst colleagues in their office and support the Corporate Responsibility and Sustainability team to raise awareness of the firm’s environmental strategy and targets.
We have created a suite of learning offerings for our colleagues, from introductions to ESG topics through to deep dives on specific ESG areas (including climate-change) and regulations to provide upskill opportunities for the entirety of our firm.
KPMG collaborated with the Cambridge Judge Business School to produce a bespoke set of learning modules on ESG essentials. Alongside this, in-house training on ESG and ‘Our Impact’ provide context into the work KPMG as a firm are doing to reduce our environmental impact as well as adding value to society. For more of an in-depth view of certain topics, the ESG Explained Podcast Series provides a deeper dive into key ESG areas such Transition Planning, ESG Assurance, and Modern Slavery.
How we're engaging our suppliers
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 recognise that we have a responsibility to help our suppliers on their journey and work collaboratively with them to share best-practice.
Through global training initiatives, we have continued to engage with our UK suppliers to upskill them on the Importance of Reducing Carbon Emissions and Setting Science-Based Targets. We also have reference guides available to supplier managers on how they can work with their suppliers on science-based targets. For any suppliers that have been requested to report on their carbon emissions, we also evaluate their performance against our KPIs and feedback their score.
We continue to engage with our strategic suppliers as part of our Responsible Supply Chain (RSC) programme, which covers four pillars, two of which are Climate and Decarbonisation, and Nature, Waste and Lifecycle Management. To support the objectives of the RSC programme, the Responsible Supply Chain Champions also meet regularly to collaborate and knowledge share on areas across the Responsible Supply Chain programme, including Modern Slavery, diversity, sustainability reporting and our sustainability commitments.
How we're enhancing our digital sustainability
KPMG has advanced a multi-phase programme to embed sustainability into every aspect of IT operations. Reflecting this programme, KPMG UK and GoCodeGreen won “Major Project of the Year” at The National Sustainability Awards 2025.
We have streamlined data centres, retired legacy systems, and reshaped procurement decisions with sustainability in mind. These changes are already improving our energy efficiency, while starting to build a culture where carbon awareness is part of everyday digital decisions.
Looking ahead, our focus is on managing the footprint of technologies such as AI and high performance computing to ensure innovation and sustainability go hand-in-hand.
Assessing our climate-related risks and opportunities
In FY25, we updated our climate-related risks and opportunities assessment to reflect the KPMG UK and KPMG Switzerland merger. Our FY25 Climate-related Financial Disclosure reports on the key physical and transition climate-related risks and opportunities our business may potentially face in the next three to 30 years. These were assessed using our in-house KPMG Climate IQ scenario analysis capability, which provided us with a quantitative assessment of the potential impact of these risks under different temperature scenarios. This exercise has enabled us to reflect on and the key mitigation measures and leverage the opportunities that a decarbonising economy may bring to our business across both the UK and Switzerland to inform our environmental strategy going forward.
Whilst we recognise that there is more to be done, over the past year we have made good progress and continued to work cross-functionally to embed climate considerations across our risk and financial decision-making. We have reported on our recent activities in our most recent Climate-related Financial Disclosure, within our Group Members Report and Financial Statements.
