Our firm
ESG reporting
Bringing consistency and comparability to our ESG reporting.
We believe sustainable growth is the only way to build a successful business and have a lasting impact on the world. So, we’re leading by example. In September 2021 we launched Our Impact – KPMG UK’s Environmental, Social and Governance (ESG) plan.
Guided by our global purpose – to inspire confidence and empower change – and our values, we are committed to being transparent and accountable for our ESG performance. The award-winning Our Impact website helps us to do this.
This is just the start of our ESG reporting journey and we know there is much more to do. We’re committed to strengthening our ESG commitments and our approach to reporting progress against these, in the months and years to come.
We’re proud that our ESG plan, and our approach to reporting against this on the Our Impact website, has been recognised with multiple awards:
We are increasing our transparency on the way we run our business, our impact on the environment and in driving greater prosperity for our people, communities and clients. We measure, and report on, our ESG performance across five areas:
We are holding ourselves to account for making progress in these areas through our commitments:
Behaving ethically and upholding our professional, ethical and quality standards at all times, guided by Our Values and Our Code of Conduct.
Working with our stakeholders to restore trust in the audit profession.
Engaging 100+ suppliers to make significant carbon reductions across our supply chain through our Sustainable Procurement Programme.
We are committed to a multidisciplinary model and believe it is core to our past and future success.
As a purpose-driven firm, we have a fundamental duty to serve the public interest and build trust.
ESG will become the watermark that runs throughout our firm.
Protect the health and wellbeing of our people and empower them to work in new and more flexible ways, enabling them to thrive.
Deliver against our ambitious 2030 inclusion, diversity and equity commitments, helping to create an environment where diversity of experience, background and perspective are truly valued, and our people feel empowered to come as they are.
Develop a continuous learning culture that supports people to grow in their own way and provides opportunities to learn for a lifetime. A place where everyone can make their mark.
Support our people to do work that matters, helping to build a stronger, fairer society.
Between 2020 and 2025, we will work directly with 150,000 beneficiaries to develop essential skills and improve social mobility.
By 2025, we will convene over 2,000 organisations to support our literacy and numeracy flagships to improve social mobility.
We’ll raise £1m for Marie Curie by September 2023 (through fundraising and pro bono support).
We’ll be Net Zero by 2030
We will achieve this by:
Become a zero waste business - eliminating all avoidable waste from our operations by 2030.
Globally, KPMG has committed to understanding and improving our impact on nature.
We recognise that our ESG disclosures must meet, and even go beyond, the needs and expectations of our stakeholders. In order to build stakeholder trust, we have a responsibility to demonstrate the robustness of the ESG information we publish. One of the ways we are doing this is by seeking independent assurance over our ESG data. We have been voluntarily seeking independent assurance over our community and planet impact data since 2014. In 2022, we expanded the scope of independent assurance sought to also include our Partner diversity metrics. In line with the advice we give to our clients, we’ll continue to review and evolve our approach to seeking independent assurance over our ESG information for future reporting periods.
See below the independent assurance reports with respect to our 2022 community impact, planet impact and Partner diversity data.
We have committed to voluntarily report our ESG performance against the World Economic Forum International Business Council Stakeholder Capitalism Metrics (WEF IBC Metrics), which aim to bring consistency and comparability to ESG reporting across sectors, industries and geographies.
The drop-down sections below share our response to the WEF IBC metrics. In our response, we have either responded directly in the tables below, or shared a link to where the corresponding disclosure can be found. We do not currently report on all of the metrics but are committed to addressing these gaps for future reporting periods. In the spirit of transparency, where we have not been able to respond to the specific requirements of a metric, we have instead shared information relating to the metric’s broader theme.
All reported data is based on the year ending 30 September 2022, unless otherwise noted.
Theme | Core metrics | Source | Our Impact |
---|---|---|---|
Governing purpose |
Setting purpose |
The British Academy and Colin Mayer, GRI 102-26, Embankment Project for Inclusive Capitalism (EPIC) and others |
Our global purpose is to inspire confidence and empower change. Our ESG performance – Our Impact – demonstrates our purpose in action. |
Quality of governing body |
Governance body composition |
GRI 102-22, GRI 405-1a, IR 4B |
We seek every opportunity to strengthen our governance arrangements and the transparency that goes with them. |
Stakeholder engagement |
Material issues impacting stakeholders |
GRI 102-21, GRI 102-43, GRI 102-47 |
We have a diverse range of stakeholders and it’s important to us that our reporting reflects their needs and expectations. Our Impact brings together disclosures we’ve made in historically separate annual reports and builds on these. We’ve listened and responded to feedback to our people surveys, and we’ve considered changing stakeholder expectations arising from current global and societal issues. As a result, we’ve identified and reported on some additional themes, over and above the metric requirements, to reflect areas of high importance to our sector’s stakeholders – for example, building trust in audit. As part of the KPMG global organisation, our approach and commitments align with the KPMG Global Impact Plan. |
Ethical behaviour |
Anti-corruption
|
GRI 205-2, GRI 205-3 |
We do not tolerate bribery and corruption in any form by any party. Ethical behaviour is of the utmost importance to KPMG and our commitment to instilling this within our operations begins with Our Code of Conduct. All KPMG partners, employees and third-party consultants are required to complete training on Our Code of Conduct. This declaration includes a personal commitment to behave ethically and to report incompatible behaviour through the firm's Speak Up hotline. These declarations are made when an individual joins KPMG, with an annual refresh through the firm's Ethics and Independence Confirmation. |
Protected ethics advice and reporting mechanisms
|
GRI 205-2, GRI 205-3 |
We are committed to creating an environment where our people feel they can speak up without fear of retaliation. Where our people feel they will be listened to, and their concerns acted on. Where colleagues can thrive and reach their full potential, whatever their identity or background. |
|
Risk and opportunity oversight |
Integrating risk and opportunity into business process |
EPIC, GRI 102-15, World Economic Forum Integrated Corporate Governance, IR 4D |
We manage risk responsibly, in the public interest and in the interests of the entities we audit, our clients, our people, our regulators and the markets and communities we work in. |
Theme | Expanded metrics | Source | Our Impact |
---|---|---|---|
Governing purpose |
Purpose-led management |
GRI 102-26 |
Our global purpose is to inspire confidence and empower change. Our ESG performance – Our Impact – demonstrates our purpose in action. Use the navigation bar at the top of this page to explore how we deliver on our purpose for our clients, our people, our communities and our planet. The activities of our Board and Board Committees this year have demonstrated purpose-led management in action, and their priorities for 2023 show a continued commitment to this agenda next year too. |
Quality of governing body |
Progress against strategic milestones |
EPIC |
Reports of the activities of the year of our Board and Board Committees can be found on our UK website. |
Remuneration
|
GRI 102-35 |
Oversight of senior leadership remuneration The People Committee provides oversight of the processes for the appointment of senior leadership positions, oversees leadership succession planning; reviews remuneration policies for Partners and senior leadership; assists the Board in its oversight of the effective execution of the People Strategy by the Executive; and oversees the effectiveness of the firm’s programmes relating to culture and ethics. The Audit Board Remuneration Committee comprises the three Audit Non-Executives only. Their role is to oversee the policy and processes for Audit Partner remuneration and their implementation, in particular to ensure their consistency with regulatory objectives and requirements, as well as their effectiveness in supporting audit quality. The Committee also oversees the criteria and selection processes for both Audit Partner promotion and designation of Responsible Individual status. Basis of equity partner remuneration Our remuneration model drives and rewards behaviour consistent with our strategy and values, reflecting an individual’s performance over time as well as current in-year performance against their goals. Read more: UK Transparency Report Our pay ratio We’re committed to transparency and on a voluntary basis publish the ratio of our UK Chief Executive’s total remuneration to that of our employees at the 25th, 50th and 75th percentile (calculated on a full-time equivalent basis of the active population of salaried colleagues as at our financial year end). We’re leading the way on pay gap reporting We want to be as transparent as possible on the gaps that exist and how we are closing them. That’s why, as well as publishing our gender pay gap, we also publish our ethnicity, sexual orientation, black heritage, disability, and socio-economic background pay gaps too. Read more: Addressing our pay gaps We're an accredited Living Wage employer In 2006, we became one of the very first employers to pay the Living Wage to its employees and contracted staff. We went on to become a founding member of the Living Wage Foundation and have continued to provide financial and strategic support ever since. Our Head of Inclusion, Diversity and Equity was appointed Chair of the Living Wage Advisory Council in June 2021. |
|
Ethical behaviour |
Alignment of strategy and policies to lobbying |
GRI 415: Public Policy 2016 |
At KPMG, we recognise the importance of engaging with politicians, policy makers and our regulators on issues of relevance to business and society, such as regional growth, Net Zero and the future of work. Whilst at all times maintaining a position of political neutrality, our insights and experience help to strengthen public policy. |
Monetary losses from unethical behaviour |
SASB 510a.1 |
Not reported |
|
Risk and opportunity oversight |
Economic, environmental and social topics in capital allocation framework |
CDSB REQ-02 |
Not reported |
Theme | Core metrics | Source | Our Impact |
---|---|---|---|
Climate Change |
Greenhouse gas (GHG) emissions |
GRI 305:1-3, TCFD, GHG Protocol |
We publish our annual environmental performance metrics within our UK Planet Impact Report. This includes our latest scope 1, scope 2 and scope 3 emissions metrics. |
TCFD implementation |
Recommendations of the TCFD; CDSB R01, R02, R03, R04 and R06, SASB 110, Science Based Targets initiative |
We have set ambitious environmental targets, approved by the Science-Based Targets initiative, to put us on course to become a Net Zero business across our entire value chain by 2030. We are committed to further reviewing the impact of climate risk on our business and working towards implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). |
|
Nature loss |
Land use and ecological sensitivity |
GRI 304-1 |
Globally, KPMG has made commitment to understanding and improving our impact on nature. Although we are not currently reporting on this specific measure, we have shared examples of how we’re engaging our suppliers, people and clients on nature issues. |
Freshwater availability |
Water consumption and withdrawal in water-stressed areas Estimate and report the same information for the full value chain (upstream and downstream) where appropriate. |
SASB, CG-HP-140a.1, WRI Aqueduct water risk atlas tool |
We publish our annual environmental performance metrics within our UK Planet Impact Report. This includes our latest water consumption metrics. |
Theme | Expanded metrics | Source | Our Impact |
---|---|---|---|
Climate Change |
Paris-aligned GHG emissions targets If an alternative approach is taken, disclose the methodology used to calculate the targets and the basis on which they deliver on the goals of the Paris Agreement. |
Science Based Targets initiative |
To build on all that we achieved over the past decade, we have launched a new, 10-year strategy, which includes ambitious environmental targets approved by the Science-Based Targets initiative. This puts us on course to become a net zero business across our entire value chain by 2030. We have made bold commitments to use 100% renewable energy across our estate, reduce the carbon impact of our supply chain by doubling the amount of suppliers we collaborate with and find more sustainable ways for our people to travel. |
Impact of GHG emissions |
US EPA fact sheet on the Social Cost of Carbon (2016), Natural Capital Protocol (2016), ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance |
Not reported |
|
Nature loss |
Land use and ecological sensitivity
|
New metric |
Not reported |
Impact of land use and conversion |
Natural Capital Protocol (2016),ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance |
Not reported |
|
Fresh water availability |
Impact of freshwater consumption and withdrawal |
Natural Capital Protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance |
Not reported |
Air pollution |
Air pollution Wherever possible estimate the proportion of specified emissions that occur in or adjacent to urban/densely populated areas. |
GRI 305-7 |
Not reported |
Impact of air pollution |
Natural Capital Protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance |
Not reported |
|
Water pollution |
Nutrients |
SASB CN0101-11 |
Not reported |
Impact of water pollution |
Natural Capital Protocol (2016), ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance |
Not reported |
|
Solid waste |
Single-use plastics Disclose the most significant applications of single-use plastic identified, the quantification approach used and the definition of single-use plastic adopted. |
New metric |
In 2019, we introduced our single-use plastic commitment, focused on reducing our consumption of single-use plastics across our estate. We’ve taken great steps, not just in achieving our plastic commitment, but in working with our suppliers and colleagues to help us reduce, re-use and recycle. And it’s not just single-use plastic we’re tackling – there are lots of steps we’re taking that have reduced the amount of waste we produce. Although we are not currently reporting on this specific measure, you can find out more about our approach to becoming a zero waste business by following the link below. |
Impact of solid waste disposal |
Natural Capital Protocol (2016), ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance |
Not reported |
|
Resource availability |
Resource circularity Disclose the methodological approach used to calculate the chosen circularity metric(s) and the rationale for the choice of metric(s). |
WBCSD Circular Transition Indicators, Ellen MacArthur Foundation |
Not reported |
Theme | Core metrics | Source | Our Impact |
---|---|---|---|
Dignity and equality |
Diversity and inclusion (%) |
GRI 405-1b |
We’re committed to creating an inclusive environment where all colleagues thrive and reach their full potential, whatever their identity or background. This is fundamental to our success as a business. We use our diversity explorer tool to keep track of our progress. |
Pay equality (%) |
GRI 405-2 |
Equal pay is a legal requirement in the UK. We have robust processes and monitoring in place to ensure that our people are treated and paid fairly, meeting both our legal and moral obligations. |
|
Wage level (%)
|
GRI 202-1 Adapted from Dodd-Frank Act, US SEC regulations |
We're an accredited Living Wage employer In 2006, we became one of the very first employers to pay the Living Wage to its employees and contracted staff. We went on to become a founding member of the Living Wage Foundation and have continued to provide financial and strategic support ever since. Our Head of Inclusion, Diversity and Equity was appointed Chair of the Living Wage Advisory Council in June 2021. Our pay ratio We’re committed to transparency and on a voluntary basis publish the ratio of our UK Chief Executive’s total remuneration to that of our employees at the 25th, 50th and 75th percentile (calculated on a full-time equivalent basis of the active population of salaried colleagues as at our financial year end). |
|
Risk for incidents of child, forced or compulsory labour
|
GRI 408-1b, GRI 409-1a |
While the professional services industry is not typically considered a high-risk sector for labour-related breaches, we are acutely aware that risks can arise across our operations and supply chain. We have a critical role to play in managing potential harm to people through a risk-based approach to human rights due diligence. Our annual Modern Slavery Statement provides an update on the progress made by KPMG over the course of year to strengthen our approach to the detection and prevention of modern slavery within our business and supply chains. |
|
Health and wellbeing |
Health and safety (%)
|
GRI:2018 403-9a&b |
Our people are what make our firm a success. We recognise the importance of health and wellbeing in enabling our people to be at their best - so we make it a priority. We provide all our colleagues with extensive access to essential services, guidance and support networks, helping them thrive at work and at home. |
Skills for the future |
Training provided (#, $) Average training and development expenditure per full time employee (total cost of training provided to employees divided by the number of employees). |
GRI 404-1, SASB HC 101-15 |
By investing in our people, we’re able to support them to grow and progress in their own way, and build a strong, inclusive and high performing workforce. One that puts its clients and impact on society at the heart of its business. |
Theme | Expanded metrics | Source | Our Impact |
---|---|---|---|
Dignity and equality |
Pay gap (%, #)
|
Adapted from UK Government guidance on gender and ethnicity pay gap reporting, 26 GRI 102-38 |
We're leading the way on pay gap reporting We want to be as transparent as possible on the gaps that exist and how we are closing them. That’s why, as well as publishing our gender pay gap, we also publish data on our ethnicity, sexual orientation, black heritage, disability, and socio-economic background pay gaps too. Read more: Addressing our pay gaps Our pay ratio We’re committed to transparency and on a voluntary basis publish the ratio of our UK Chief Executive’s total remuneration to that of our employees at the 25th, 50th and 75th percentile (calculated on a full-time equivalent basis of the active population of salaried colleagues as at our financial year end). |
Discrimination and harassment incidents (#) and the total amount of monetary losses ($)
|
GRI 406-1, Adapted from SASB FR-310a.4 |
Although we are not currently reporting on these specific measures, our commitments in relation to this disclosure theme are outlined in Our Code of Conduct. We are committed to equality, to a culture that is free from discrimination and to providing a work environment free from harassment. |
|
Freedom of association and collective bargaining at risk (%)
|
SASB CN0401-17, GRI 407-1, WDI 7.2 |
Not reported |
|
Human rights review, grievance impact & modern slavery (#, %)
|
GRI 412-1, UN Guiding Principles, GRI 408-1a, Adapted from GRI 408-1a and GRI 409-1, WDI 7.5 |
KPMG Global Human Rights Statement Our Global Business and Human Rights Statement establishes KPMG’s commitment to respecting human rights at all levels of our operations. In following the UN Guiding Principles, we seek to prevent adverse human rights impacts caused by any of our business relationships and to address any impacts that occur. Read more: KPMG International Business and Human Rights Statement Modern slavery While the professional services industry is not typically considered a high-risk sector for labour-related breaches, we are acutely aware that risks can arise across our operations and supply chain. We have a critical role to play in managing potential harm to people through a risk-based approach to human rights due diligence. Our annual Modern Slavery Statement provides an update on the progress made by KPMG over the course of year to strengthen our approach to the detection and prevention of modern slavery within our business and supply chains. |
|
Living wage (%) |
MIT Living Wage Tool, EPIC |
In 2006, we became one of the very first employers to pay the Living Wage to its employees and contracted staff. We went on to become a founding member of the Living Wage Foundation and have continued to provide financial and strategic support ever since. Our Head of Inclusion, Diversity and Equity was appointed Chair of the Living Wage Advisory Council in June 2021. |
|
Health and wellbeing |
Monetised impacts of work-related incidents on organisation (#, $) |
Adapted indicator based on European Commission, Safe Work Australia |
Not reported |
Employee wellbeing (#, %)
|
GRI:2018 403-10a&b, EPIC, Adapted from GRI:2016 403-2a |
Not reported |
|
Skills for the future |
Number of unfilled skilled positions (#, %)
|
WBCSD Measuring Impact Framework Methodology Version 1.0 (2008) |
Not reported |
Monetised impacts of training - Increased earning capacity as a result of training intervention (%, $)
|
Adapted from OECD, 27 28 WDI 5.5 |
Not reported |
Theme | Core metrics | Source | Our Impact |
---|---|---|---|
Employment and wealth generation |
Absolute number and rate of employment Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region. |
Adapted, to include other indicators of diversity, from GRI 401-1a&b |
Explore our Inclusion, Diversity and Equity pages for new hire metrics by disability, ethnicity, gender, sexual orientation and socio-economic background. |
Economic contribution
|
GRI 201-1, GRI 201-4 |
Our latest financial data can be found in our UK Members’ Report and Financial Statements, which is hosted within Report hub. |
|
Financial investment contribution Share buybacks plus dividend payments, supported by narrative to describe the company's strategy for returns of capital to shareholders. |
As referenced in IAS and US GAAP ASC 230 |
Our latest financial data can be found in our UK Members’ Report and Financial Statements, which is hosted within Report hub. |
|
Innovation of better products and services |
Total R&D expenses ($) |
US GAAP ASC 730 |
Not reported |
Community and social vitality |
Total tax paid |
Adapted from GRI 201-1 |
KPMG in the UK makes a significant contribution each year to the public finances through the taxes paid by our partners on our profit, the taxes we bear as an organisation and those we collect on behalf of the exchequer. |
Theme | Expanded metrics | Source | Our Impact |
---|---|---|---|
Employment and wealth generation |
Infrastructure investments and services supported
|
GRI 203-1 |
Our communities We publish our annual community impact metrics within our UK Community Impact Report. This includes our latest community contribution figures. Read more: UK Community Impact Report Our tax contribution KPMG in the UK makes a significant contribution each year to the public finances through the taxes paid by our partners on our profit, the taxes we bear as an organisation and those we collect on behalf of the exchequer. |
Significant indirect economic impacts
|
GRI 203-2 |
Refer to our response to the metric above. |
|
Innovation of better products and services |
Social value generated (%) |
Adapted from GRI (FiFS7 + FiFS8) and SASB FN0102-16.a, EPIC |
Not reported |
Vitality Index |
Adapted from OECD Oslo Manual Section 8.3.1 |
Not reported |
|
Community and social vitality |
Total Social Investment ($) |
CECP Valuation Guidance |
We publish our annual community impact metrics within our UK Community Impact Report. This includes our latest community contribution figures. |
Additional tax remitted |
Adapted from GRI 201-1 |
KPMG in the UK makes a significant contribution each year to the public finances through the taxes paid by our partners on our profit, the taxes we bear as an organisation and those we collect on behalf of the exchequer. |
|
Total tax paid by country for significant locations |
Adapted from GRI 201-1 |
KPMG in the UK makes a significant contribution each year to the public finances through the taxes paid by our partners on our profit, the taxes we bear as an organisation and those we collect on behalf of the exchequer. |