Our planet
Becoming a net zero business
Across our entire value chain, by 2030.
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.
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 the target to become Net Zero by 2030, 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 Sustainable Procurement Programme
Making significant carbon reductions on our business travel through our ‘greening’ travel strategy
Since setting our science-based target and ambition to become Net Zero, the Science Based Targets Initiative has released the Corporate Net-Zero Standard. We are in the process of reviewing this new standard.
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 (consumption of natural gas), scope 2 (electricity) and scope 3 (business-related travel) emissions still remain 76% lower than pre-pandemic levels.
Electricity
Our electricity consumption increased by 18% since FY21, this is in part a reflection of the increased usage of our offices, and our work to widen our data collection across our estate to include more common area consumption data. We continue to work proactively to reduce our electricity consumption. This year we have continued our LED upgrade programme in both our Canary Wharf Head office and our Birmingham office. We have also installed new pumps in our Leeds office to improve the efficiency of our heating and cooling systems.
We continue to purchase renewable energy for our managed estate, and this year took the decision to purchase additional Guarantees of Origin from renewable sources to cover all of our electricity consumption within landlord managed offices that weren’t already procuring REGO-backed renewable electricity from April 2022.
Gas
Our gas consumption has increased by 6% since FY21, reflecting the shift from a predominantly remote working model to hybrid working, with more colleagues returning to work in our offices and the increased data collection across our estate. As one of our larger areas of carbon impact, this year we focused our reduction work on reducing our gas consumption. We have undertaken a large boiler upgrade in our Canary Wharf Head office to improve their efficiency and 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 significantly in this reporting year compared to FY21 due to the lifting of travel restrictions and the ability for our colleagues to recommence travel to client sites where necessary. However, we have not returned to our pre-pandemic levels and our emissions from business travel are down 78% compared to pre-pandemic levels. We are committed to reducing the impact of our business travel and ensure that as we emerge from the pandemic we travel responsibly and purposefully. We launched our travel SMART guidance to ensure travellers only travel when needed and where there is a need to travel, we do so sustainably. With the introduction of our new carbon dashboards, 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.
Electricity consumption that is renewable / 99%
2022
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.
The benefits of an ICP
Carbon pricing reveals the hidden cost of greenhouse gas emissions and helps incorporate this cost into business strategy and policy, so it ultimately reduces carbon emissions.
Introducing an ICP on business travel emissions helps incentivise colleagues to change their behaviour as each business area will be charged the ICP levy based on the business travel they do.
An ICP raises awareness of environmental damage caused through greenhouse gas emissions with all of our stakeholders.
An ICP can be used as a decision-making tool for organisations to use to guide their business decisions and investments, making carbon considerations central to business operations and understanding.
The money raised through an ICP can be used to pay for sustainability initiatives.
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 decarbonisation projects, incentivising efficiency and enabling low-carbon innovation.
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 Canada Square 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 marked World Environment Day in June by hosting sustainability sessions focused on the interconnections between climate change and biodiversity, and the vital role of pollinators in our ecosystem.
During COP27, we held a live broadcast to schools where pupils learnt about COP27 and the steps KPMG UK is taking to reduce carbon emissions and promote sustainable practices. They took part in a sustainability challenge where they presented an environmental sustainability project plan, showing the action their school is taking to help tackle climate change. We awarded the winning schools with a cash prize to help them put their plans into action.
Our Game On: Sustainability Challenge, where colleagues competed with each other on a range of bite-sized eco challenges, won a bronze award at the Corporate Engagement Awards 2022. In just one month, our people committed to over 1,100 actions that will help save carbon emissions, single-use plastics and water.
We are also engaging our people to support our communities in this area as we work to ensure that the green jobs revolution is fair and inclusive. Through our Green Skills for Life programme, we are building students’ ‘sustainability mindset’ and helping prepare and excite them for the changing world of work.
With the pandemic re-shaping the way we live and work, we launched our award-winning Sustainability at Home campaign, to support our people in driving positive environmental action from home.
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 2022, we asked 100 of our 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, 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.