Our firm
ESG reporting
Bringing consistency and comparability to our ESG reporting.
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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.
Awards
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:
Our key areas of focus
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:
Our firm
Our clients
Our people
Our communities
Our planet
How we're governing our firm and being transparent in the way we conduct business.
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.
Building trust through independent assurance
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 2023 community impact, planet impact and Partner diversity data.
Reporting framework
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 2023, unless otherwise noted.
| Theme | Core metrics | Our Impact |
|---|---|---|
Governing purpose |
Setting purpose |
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 |
We seek every opportunity to strengthen our governance arrangements and the transparency that goes with them. |
Stakeholder engagement |
Material issues impacting stakeholders |
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. As part of the KPMG global organisation, our approach and commitments align with the KPMG Global Impact Plan. |
Ethical behaviour |
Anti-corruption
|
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
|
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 |
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 | Our Impact |
|---|---|---|
Governing purpose |
Purpose-led management |
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 2024 show a continued commitment to this agenda next year too. |
Quality of governing body |
Progress against strategic milestones |
Reports of the activities of the year of our Board and Board Committees can be found on our UK website. |
Remuneration
|
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, People and Culture 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. 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 |
As a leading professional services firm, policy makers and politicians are important stakeholders for us and we believe the knowledge and insights we obtain through our work with thousands of clients can provide valuable insight for policymaking. Whilst we are willing and active participants in public policy debates through a number of engagement activities and relationships in the UK and beyond, we seek to maintain a position of political neutrality. Read more: Our approach to transparent political engagement in the UK |
Monetary losses from unethical behaviour |
Not reported |
|
Risk and opportunity oversight |
Economic, environmental and social topics in capital allocation framework |
Not reported |
| Theme | Core metrics | Our Impact |
|---|---|---|
Climate Change |
Greenhouse gas (GHG) emissions |
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 |
Our 10-year environment strategy includes ambitious environmental targets aligned the 1.5-degree pathway and approved by the Science Based Targets Initiative. We have made bold commitments around our energy usage, our supply chain and how our people travel. Since setting our science-based target, the Science-Based Targets initiative (SBTi) has released the Corporate Net-Zero Standard. We are in the process of reviewing this standard while rebaselining our current near-term target. Read more: Becoming a Net Zero business 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). From 2023, our progress is reported within our UK Members’ Report and Financial Statements. |
|
Nature loss |
Land use and ecological sensitivity |
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. |
We publish our annual environmental performance metrics within our UK Planet Impact Report. This includes our latest water consumption metrics. |
| Theme | Expanded metrics | 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. |
Our 10-year environment strategy includes ambitious environmental targets aligned the 1.5-degree pathway and approved by the Science Based Targets Initiative. We have made bold commitments around our energy usage, our supply chain and how our people travel. Since setting our science-based target, the Science-Based Targets initiative (SBTi) has released the Corporate Net-Zero Standard. We are in the process of reviewing this standard while rebaselining our current near-term target. |
Impact of GHG emissions |
Not reported |
|
Nature loss |
Land use and ecological sensitivity
|
Not reported |
Impact of land use and conversion |
Not reported |
|
Fresh water availability |
Impact of freshwater consumption and withdrawal |
Not reported |
Air pollution |
Air pollution Wherever possible estimate the proportion of specified emissions that occur in or adjacent to urban/densely populated areas. |
Not reported |
Impact of air pollution |
Not reported |
|
Water pollution |
Nutrients |
Not reported |
Impact of water pollution |
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. |
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 |
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). |
Not reported |
| Theme | Core metrics | Our Impact |
|---|---|---|
Dignity and equality |
Diversity and inclusion (%) |
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 (%) |
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 (%)
|
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
|
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 (%)
|
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 (#, $) Average training and development expenditure per full time employee (total cost of training provided to employees divided by the number of employees). |
By investing in our people, we’re able to support them to grow and progress in their own way, and build a strong, inclusive and high performing workforce. One that puts its clients and impact on society at the heart of its business. |
| Theme | Expanded metrics | Our Impact |
|---|---|---|
Dignity and equality |
Pay gap (%, #)
|
We're leading the way on pay gap reporting We want to be as transparent as possible on the gaps that exist and how we are closing them. That’s why, as well as publishing our gender pay gap, we also publish data on our ethnicity, sexual orientation, black heritage, disability, and socio-economic background pay gaps too. Our pay ratio We’re committed to transparency and on a voluntary basis publish the ratio of our UK Chief Executive’s total remuneration to that of our employees at the 25th, 50th and 75th percentile (calculated on a full-time equivalent basis of the active population of salaried colleagues as at our financial year end). |
Discrimination and harassment incidents (#) and the total amount of monetary losses ($)
|
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 (%)
|
Not reported |
|
Human rights review, grievance impact & modern slavery (#, %)
|
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 (%) |
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 (#, $) |
Not reported |
Employee wellbeing (#, %)
|
Not reported |
|
Skills for the future |
Number of unfilled skilled positions (#, %)
|
Not reported |
Monetised impacts of training - Increased earning capacity as a result of training intervention (%, $)
|
Not reported |
| Theme | Core metrics | Our Impact |
|---|---|---|
Employment and wealth generation |
Absolute number and rate of employment Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region. |
Explore our Inclusion, Diversity and Equity pages for new hire metrics by disability, ethnicity, gender, sexual orientation and socio-economic background. |
Economic contribution
|
Our latest financial data can be found in our UK Members’ Report and Financial Statements, which is hosted within Report hub. |
|
Financial investment contribution Share buybacks plus dividend payments, supported by narrative to describe the company's strategy for returns of capital to shareholders. |
Our latest financial data can be found in our UK Members’ Report and Financial Statements, which is hosted within Report hub. |
|
Innovation of better products and services |
Total R&D expenses ($) |
Not reported |
Community and social vitality |
Total tax paid |
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 | Our Impact |
|---|---|---|
Employment and wealth generation |
Infrastructure investments and services supported
|
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
|
Refer to our response to the metric above. |
|
Innovation of better products and services |
Social value generated (%) |
Not reported |
Vitality Index |
Not reported |
|
Community and social vitality |
Total Social Investment ($) |
We publish our annual community impact metrics within our UK Community Impact Report. This includes our latest community contribution figures. |
Additional tax remitted |
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 |
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. |