Our planet
Becoming a net zero business
Achieving our near-term science-based target by 2030, while preparing our business to commit to a long-term net zero target
Becoming a Net Zero business
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Our commitment
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.
In 2017, we conducted a baseline emissions record of the greenhouse gases KPMG UK produced, this was used to model our science-based target and acts as a reference point against which we can measure a reduction in emissions and our ongoing activities in this area.
In 2020, we set a science-based target aligned with a 1.5˚C pathway, which will be achieved by:
Using 100% renewable electricity across our estate by 2024
Switching to renewable gas across our estate by 2030
Engaging with our suppliers to make carbon reductions across our supply chain through our Responsible Supply Chain Programme
Making significant carbon reductions on our business travel through our ‘greening’ travel strategy
Our progress
As we have adapted to our new hybrid working model, our offices have returned to more normal opening hours and colleagues are able to split their time between home, the office and client sites. We have seen these changes to our ways of working reflected by increases in our carbon footprint, however our total scope 1 (natural gas and KPMG owned/leased car travel), scope 2 (electricity) and scope 3 (business-related travel and energy related) emissions still remain 41% lower than pre-pandemic levels.
Electricity
Our electricity consumption increased by 4% since FY22, this is primarily a reflection of the increased usage of our offices. We continue to work proactively to reduce our electricity consumption. This year we have continued our LED upgrade programme, completing the first phases at both our Canary Wharf office and our Birmingham office. We have also successfully trialled new motors with improved efficiency in air handling units at our head office, and we plan to roll out the upgrade in FY24.
We successfully achieved our target of using only renewable electricity by 2024 and we are pleased to report 100% of our electricity is now backed by Renewable Energy Guarantees of origin (REGOs). As in previous years, we continue to purchase renewable energy for our own managed estates. In autumn 2023, we started generating renewable energy on our estate for the first time with the installation of solar panels at our Canary Wharf head office. It is anticipated that this will reduce our consumption from the grid by 160,000 kWh each year.
Gas
Our gas consumption has decreased by 6% since FY22, reflecting the improvements made to energy efficiency within our buildings. For example, we have completed a large boiler upgrade that was started in the previous reporting period in our Canary Wharf head office, which has improved their efficiency and we’ll continue to fine-tune our offices in response to our hybrid working patterns.
Business travel
Our business travel across all forms of transport has increased due to the lifting of travel restrictions and the ability for our colleagues to recommence travel to client sites and offices where necessary. Overall, business travel remains below pre-pandemic (2019) levels as we continue to use collaboration technologies. We are a people business, so being able to visit clients to deliver work is an important aspect of what we do. That’s why we’re committed to reducing the impact of our business travel and ensure that we travel responsibly and purposefully. We continue to promote our travel SMART guidance to ensure travellers only travel when needed and where there is a need to travel, we do so sustainably. We introduced our Carbon Traveller Dashboard, so our travellers can see their individual footprint and hints and tips to reduce our overall footprint. We work closely with our supply chain to look at different ways to travel and promote more sustainable travel options to our travellers through the introduction of our green hotel programme, changes to business class policy and our rail mandated routes.
2024 target achieved: 100% of the electricity we consume is renewable
2023
We are committed to switching to renewable gas when it’s commercially available
By 2030
Can you put a price on Carbon?
Since 1 October 2022, KPMG UK has introduced an Internal Carbon Price (ICP) on our electricity, gas and business travel emissions.
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 carbon emissions through improved efficiency
Investing in resource to drive continual improvement in our data collection and reporting methodologies
Research projects that support us to realise low-carbon opportunities
Technology to streamline reporting and enhance traceability
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. The funds we raise through our ICP will be re-invested in greener, low-carbon upgrades to our operations, incentivising efficiency and enabling low-carbon innovation. A recent example of this is investing in solar panels at our Canary Wharf head office.
How we’re engaging our people
We continue to host Sustainability Unplugged sessions, bringing together inspiring sustainability experts and colleagues to discuss the environmental issues we’re facing and ways we can all make a difference. We’ve shone a spotlight on sustainability at our London Canary Wharf office, hearing from on-site experts about the important work that happens behind the scenes to reduce the environmental impact of our energy, waste, food and travel. We also held an event exploring the importance of nature, what we can do to support it, and how we are helping our clients in this space too.
The Net Zero economy is going to bring about an unprecedented demand for ‘green skills.’ We’re working with schools in areas of low social mobility to build students’ ‘sustainability mindset’ and help prepare and excite them for the changing world of work.
How we’re engaging our suppliers
When setting our own science-based targets, we made a bold 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.
In 2023, we asked over 200 of our UK suppliers to report their carbon data to us by disclosing to CDP, helping us to measure, and encourage, progress. We’re proud to be recognised on the CDP Supplier Engagement Leaderboard in 2022, recognising our efforts to reduce carbon emissions and minimise energy consumption throughout our supply chain.
To help share best-practice, we facilitate roundtables, workshops and webinars for organisations in our supply chain. These have covered: the importance of reducing emissions; what good reporting looks like; and the approach to setting science-based targets. We also facilitate events for suppliers and industries that need extra support.