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Reducing our impact on the environment to build a more sustainable and resilient future.

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Sustainable Development Goals:

As a large, global and values-led organization, at KPMG we recognize and embrace our responsibility to quantify and mitigate the impact of our operations and the services we provide. We want to fully play our part in the transition to societal net-zero and help address the existential challenges of climate change, water pollution, deforestation and biodiversity loss.

In order to achieve our ambition to become a net-zero organization, we need to halve our current level of carbon emissions by 2030. We’re doing this through a continued focus on our footprint, investing in energy-efficient systems and bolstering our adoption of circular economy practices. We place a priority on sustainability within our global organization and are working with our suppliers to help them decarbonize and measure progress too.

Additionally, an important focus is on advising clients around sustainability solutions and the decarbonization journey, together with our key work in the public interest of auditing climate-related risks and opportunities as they are expressed in the financial statements.

"The climate crisis is intensifying, along with increasingly serious nature and biodiversity loss. To address these urgent, interlinked challenges, holistic approaches are needed. At KPMG, we are striving to take an integrated and coordinated approach across our KPMG firms to reduce our impacts and develop the most sustainable footprint possible. We also want to maximize our impact by helping clients on their decarbonization journeys — which bring not only risk but huge opportunity. We’re acting ourselves and helping others act — we are all in it together as we move along this path."

John McCalla-Leacy

Head of Global ESG

KPMG International

Decarbonization

Our commitment: Achieve net-zero carbon emissions by 2030

Decarbonization is critical to curbing the harmful effects of climate change and drives our net-zero carbon emission efforts to decarbonize our business by 50 percent across all scopes by 2030. Overall, we are making progress, as we’ve seen a 22 percent reduction in gross emissions against our FY19 baseline year, but we realize the decarbonization journey is complex. While we’ve seen improvements in Scope 1 and 2 emissions, we remain vigilant in addressing our Scope 3 emissions with a focus on managing business travel and advancing our supply chain decarbonization program.

Our route to net-zero

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Energy efficiency

Renewables

Travel

Supply chain

Circularity

Nature positive

Carbon removals

Our decarbonization journey

Decarbonization is critical to our societal net-zero efforts, which is why we set a near-term science-based target (SBT) to decarbonize our business by 50 percent across all scopes by 2030, compared to our FY19 baseline. Like many organizations, we are looking beyond 2030 as we move toward net-zero.

We also look beyond our own footprint toward ways that we can make a difference through our client work, with third parties and through what the Science-Based Targets initiative (SBTi) refers to as “beyond value chain mitigation.” This includes investing in carbon credits and nature initiatives to support the global effort to reach net-zero. For KPMG, our current approach includes an investment of more than US$1 million across a number of our firms in WWF conservation and nature restoration projects, as well as buying credits from voluntary carbon markets.

Our main priority, however, remains our own internal decarbonization. In FY23, we had a 4 percent increase in gross emissions from the prior year due to the reintroduction of business travel following COVID-19 lockdowns. However, this still represents a 22 percent reduction against our FY19 baseline year, and we also managed a reduction in emissions intensity across several key indicators.

Our Scope 1 and 2 net emissions continued to decrease: a 12 percent reduction compared to FY22. The reductions we achieved in Scope 1 and 2 emissions are due to the continuation of hybrid working and the initiatives KPMG firms have been implementing to improve energy efficiency. These are funded in some KPMG firms by the implementation of an Internal Carbon Price (ICP), a monetary value on greenhouse gas emissions which businesses can then factor into investment decisions and business operations. Reporting KPMG Firms have implemented ICPs ranging from US$15 to US$85 per tCO2e, in line with their decarbonization priorities and national economic circumstances — with KPMG firms planning increases in line with their future decarbonization investment plans and focusing on managing emissions such as air travel.

Our total electricity usage decreased slightly despite our growth, with the proportion of renewable energy across our global organization increasing from 79 percent in FY22 to 81 percent in FY23. With all our Reporting KPMG Firms having now transitioned to renewable electricity, the challenge is to ensure that the remaining KPMG firms can also transition in a just, fair and equitable manner. KPMG firms that are yet to source renewable electricity are typically located in countries and regions where availability of supply and prohibitive prices are potential obstacles. Despite this, we remain committed to our goal of using 100 percent renewable electricity across our global organization by 2030 as we recognize that our commitment helps drive wider energy transition goals. 

While overall we saw a modest increase in Scope 3 of 3 percent, business travel emissions increased significantly, primarily due to increased air travel emissions. While air travel emissions increased by approximately 77 percent compared to FY22, this total remains 40 percent lower than our FY19 baseline. The rise in air travel is principally due to our people beginning to reconnect with client and team members following post-COVID-19 travel restrictions as well as organizational growth and a change in emissions factors. Importantly, due to proactive travel management, the implementation of sustainable travel guidelines across KPMG firms, and the behavior-changing influence of our ICP, this ‘rebound’ in air travel has not brought us back to pre-pandemic levels.

We remain vigilant in collectively managing business travel across the organization, as it remains a vital component to achieving our 2030 target and our overall ambition to decouple emissions from growth.  

The accepted standards to calculate emissions factors for air travel emissions have also changed due to passenger loads changing as a result of the COVID-19 pandemic — meaning that, in FY23, those who flew needed to account for a greater proportion of emissions1, which accounts for a proportion of our air travel emissions growth.

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Supply chain impacts

Our Purchased Goods and Services (PGS) make up a significant portion of our total Scope 3 emissions. We recognize that ongoing and proactive engagement and collaboration with our suppliers is critical to achieving our decarbonization ambitions.

We have completed our second supply chain engagement cycle with CDP (formerly the Carbon Disclosure Project), which is foundational to our supply chain decarbonization program, covering the supply chains for KPMG International and 10 of the Reporting KPMG Firms that, collectively, have the largest emissions footprint. 

Taking lessons learned from our first CDP supply chain cycle, our focus for 2023 was improving supplier response rates as well as data quality, particularly around emissions allocated to KPMG. Using CDP offers a consistent and methodological approach to obtaining accurate data on PGS emissions. This has enabled us to further refine our methodology for estimating our Scope 3 Category 1 emissions, which in turn will improve our emissions data for our mandatory re-baselining exercise for our Science Based Target in FY25.

We have developed Key Performance Indicators that help us track supplier performance against our priority areas. We have also developed a supplier performance roadmap to help benchmark suppliers’ carbon performance and to provide more meaningful feedback to them on potential areas for improvement. As our disclosure program is maturing, we are looking to increase our engagement with suppliers and collaborate further to reduce our collective footprint.

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People of KPMG

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Apurba Mitra

KPMG in India

I have built a career as an ESG specialist with a specific focus on energy and climate change. I started at KPMG in India 14 years ago when the ESG practice was created and driven by a passion for sustainability, later transitioning to more of an environmental think tank. Two years ago, I returned to KPMG with a desire to make a difference by addressing ESG challenges on the ground by engaging directly with businesses and policymakers and helping to drive meaningful change.

I lead the Climate Change service line and am the People Lead for the ESG practice in India. The ESG practice in India has one of the highest gender diversity ratios within the firm — with more than 57 percent women. As a working mother, I understand the challenges that come with managing a career and raising a family and I’m committed to seeing the women on my team thrive. One of my biggest inspirations growing up was my mother, who broke barriers as the first woman Indian Police Services officer from our state. She showed me from a very young age the strength that women can bring to the table.

In the last two years, I have worked with many other KPMG firms on ESG services and led first-of-its-kind engagements in India, including end-to-end decarbonization strategies for the agricultural value chain. I also represent KPMG in the Technical Working Group of the Science Based Targets initiative (SBTi), which provides credible frameworks for companies to take measurable and effective actions in addressing climate change.

To me, it’s important to create a safe and collaborative workplace environment where open communication and constructive debate are encouraged. This helps build a strong foundation of trust within the team and enhances our collective ability to address the world’s most significant ESG challenges.

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Consideration of climate-related risks in the financial statement audit

In our role as auditors, KPMG firms support the transition to a net-zero global economy by planning and performing financial statement audits in accordance with professional standards, including as they relate to climate-related matters. In recent years, KPMG has introduced and developed enhanced methodologies, guidance, training and workpapers for the consideration of climate-related risks in the financial statement audit.

KPMG recognizes that entities should consider whether environmental and climate-related matters are material to the financial statements, including potential impacts arising from the risks associated with the transition to a lower-carbon economy.

To further support the transition to a net-zero global economy, KPMG monitors four quality metrics relating to the planning and performance of financial statement audits. The metrics were monitored at a selection of KPMG clients from carbon-intensive industries (‘in-scope engagements’) for the most recently completed audit prior to 30 September 2023. Procedures and activities performed at the in-scope engagements were used as a basis for measurement. The quality metrics and monitoring results are:

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Looking ahead, we will support investor efforts to connect financial and sustainability disclosures. We will also call for robust sustainability assurance standards to help drive confidence in climate-related disclosures by enabling a level of quality in such disclosures that mirrors the same level required in financial statements.

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Continuing to advance our journey

We’re making progress on our decarbonization journey — but we’re also looking beyond 2030 to 2050. As a global organization, we continue to develop our internal transition plan, including re-baselining our FY19 emissions within the next two years (per SBTi requirements). We are also looking at longer term commitments (aligning an investment approach in nature and carbon credit projects across our global organization), while keeping our eye on the 2030 goal.

Concurrently, we are working toward introducing a hybrid approach to ESG assurance across the Reporting KPMG Firms by FY25 — including reporting Greenhouse gas (GHG) data — to support decarbonization plans and to meet the increasing expectations of clients and suppliers.

Collaborating to address climate change

Climate change is a global challenge which requires global collaboration. Our impact extends beyond our own efforts to address climate change through the work of our KPMG firms to support clients with their climate journeys. 

In 2023, a multi-disciplinary team from across the organization collaborated on a number of key events and initiatives in support of the 28th Conference of the Parties (COP28) and its goals. They came together to focus on amplifying the program themes of COP28 and collaborating with clients to expand the reach and increase awareness of the conference and its goals.

Launched as part of our COP28 program of work, KPMG’s 2023 Net-Zero Readiness Report examined the possible barriers to meeting net-zero by 2050, such as global public debt, domestic tensions, increased opposition to decarbonization plans, and the need to guarantee energy supply.

Leveraging our global scale, reach and breadth of service offerings, KPMG continues to play an active role in driving conversations that help to address the challenges being faced by our clients and the planet.

See the PDF for additional data on our operational GHG footprint (ktCO2e).

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Case study

Next generation of leaders driving a sustainable future: KPMG International

In 2021, during the United Nations Climate Change Conference, KPMG in the UK established the first KPMG Leaders 2050 program. The UK program has hosted multiple external-facing events and produced key thought leadership to raise awareness and encourage action on climate change, growing the program to over 2,500 members.

Following the program’s notable success, 26 KPMG firms have now established a Leaders 2050 program, building a network of future leaders across KPMG. These future leaders are collectively breaking down barriers, establishing new ways of working and thinking, and making the difference by helping to drive a fair and just transition to net-zero, clean growth and sustainability.

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Circularity

Circularity promotes greater sustainability by reducing material use and the emissions associated with the production of materials that traditionally go to waste. Transition toward a circular economy is essential to achieve net-zero emissions.

To play our part, we have developed a circularity strategy and roadmap for our operations, including our supply chain. This has involved taking a holistic view and approach that focuses on circular procurement, avoiding waste, optimizing material use and enhancing products' end-of-life treatment.

We began the process by identifying where these circular principles can be applied within our organization, followed by analyzing our current performance and spotting opportunities for improvement. The scope of our circular strategy is focused on three key areas:

  •  Information and communications technology

  •  Offices and real estate

  •  Catering and hospitality

For each of these themes, we’ve developed a roadmap that outlines the actions that could move the organization toward a more circular model — such as offering repaired, recycled or refurbished IT equipment and sourcing circular furniture — and implementing strategies to help optimize material use and lifetime.

Through ongoing engagement with KPMG firms, we’re helping colleagues better understand the concept of a circular economy and identify where waste is generated across our value chain, while also providing a framework for implementation and reporting.

We want to help clients in this key area too — and recently launched the KPMG Circularity Tracker, using Microsoft Cloud for Sustainability, which measures and tracks circularity at every level of an enterprise, from products and locations to materials. This exciting and innovative solution provides comparisons across products, as well as advice on how to reduce primary resource use and waste generation.

See the PDF for additional data on our climate change performance and our renewable energy performance.

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Case study

Accelerating the transition to a circular economy: KPMG in the Philippines

The government of the Philippines has been working with an international development agency to transition to a circular economy.  

The agency needed help collecting the baseline data required to support the indicators of a circular economy and engaged KPMG in the Philippines to carry out elements of a study. This data was critical to help enable stakeholders and decision-makers of relevant government agencies to monitor and track progress toward a circular economy.

Working with professionals who specialize in the circular economy, KPMG in the Philippines developed baseline reports and coordinated with national government agencies and local governments in target cities to consolidate and analyze all available data in the identified indicators.

As a result of the project, a circular economy framework has been developed and made available by the government of the Philippines as a guide to helping achieve circular economy-supportive policies that accelerate the country’s transition.

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Climate risk

Our commitment: Give financial markets, clients and our leaders clear, comprehensive, high quality information on the impacts of climate change

KPMG recognizes climate change as a key business risk and we are already experiencing its impact. Like many other global organizations, we are on a journey when it comes to climate change. A key milestone in this journey is the publication of our first Climate Risk Report — aligned with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Our Climate Risk Report presents KPMG’s climate-related risks and opportunities. These include our exposure to both physical risk — extreme weather events and the impact on our people, operations and supply chain — and transition risk which assesses the impact of moving to a low-carbon net-zero economy and how we can support our clients with this change.

The report also provides insights into the challenges we face and areas of importance as we move toward 2030 and our long-term net-zero ambition.

To further understand our progress and areas of ongoing development, read the full report here

KPMG played an active role on the TCFD Board. Prior to its disbanding in January 2024 and the integration of its work with that of the IFRS and ISSB, the intent of the TCFD was to foster the right strategic behavior by ensuring that climate risks and opportunities were built into organizations’ risk management processes and strategic planning. We are pleased that their recommendations have been integrated into the climate-related and general sustainability-related disclosure standards of the ISSB. As an integrated whole, these standards will further articulate how organizations should disclose information consistently on climate-related financial risk (and its potential impacts), as well as drawing attention to the strategic benefits of good climate risk management.

We also continue to report annually to CDP on our collective performance and management for climate-related issues. This year we maintained a B grade, displaying a coordinated action on climate issues. To further strengthen our rating, over the last year we’ve focused on quality assurance, supply chain engagement and assessing climate risk under a range of scenarios using the KPMG Climate IQ platform — a multi-industry risk management tool that enables companies to identify, quantify and manage their exposure to physical and transition risks due to climate change.

We are committed to furthering our efforts to fully understand and articulate our climate-related impacts and to embed them into the heart of our business, while continuing to engage with key stakeholders to support our ongoing climate journey.

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Case study

Boosting climate change resilience across Africa: KPMG in Norway

The African continent is experiencing a concerning rise in the scale and frequency of extreme climate-related events, many of which cause social and economic disasters that can erase decades of development in a matter of minutes. The inherent uncertainty and magnitude of these events, coupled with competition for limited fiscal resources, have left governments across the continent struggling to proactively and effectively manage the risks and adequately respond when they take place.  

Recognizing the urgent need to bolster countries’ resilience and response capabilities, the African Development Bank (AfDB) has taken proactive measures to support disaster risk management systems. The AfDB commissioned KPMG in Norway to pilot the design of a comprehensive program known as the Africa Climate Risk Insurance Facility (ACRIF), aimed at facilitating countries' access to disaster risk financing, including insurance products. 

KPMG in Norway played a crucial role in shaping the program, engaging stakeholders from participating country governments, establishing clear objectives and targets, and designing a robust institutional framework to support the implementation.  

This program has served as a cornerstone for AfDB, enabling them to mobilize US$8.9 million in climate-related funding from the Global Environment Facility (GEF), a multilateral environmental fund. 

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Nature and biodiversity

Our commitment: Understanding and improving our impact on nature and biodiversity

As nature positivity and biodiversity are foundational for the health of the planet, we are conducting an assessment across our global organization to better understand our nature-related impacts. KPMG International actively participates in the new Taskforce on Nature-related Financial Disclosures (TNFD), helping to drive improved transparency on how businesses manage their relationship with nature.

We are actively engaged in fostering a transition toward nature positivity.

KPMG firms around the world are working closely with their clients to support them with their own nature-related policies and initiatives. Simultaneously, we are committed to gaining a better understanding of, and addressing, our own nature-related impacts and dependencies. With this in mind, we have undertaken a nature-related impacts and dependencies assessment across our global organization, the outcome of which will inform our ongoing management and reporting.

As part of our commitment to nature, KPMG International actively participates in the Taskforce on Nature-related Financial Disclosures (TNFD), playing a key role in the development and implementation of the new TNFD framework. We firmly endorse the TNFD’s mission to integrate nature considerations into business frameworks, urging transparent disclosure and reporting on the risks, impacts, dependencies and opportunities. This collective effort underscores KPMG's continued dedication to influencing positive change in how businesses worldwide comprehend and manage their relationship with nature.

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Collaboration spotlight

Investing in ecosystem protection and restoration with WWF

KPMG International has chosen to allocate its internal carbon price (ICP) funds to two collaborative projects with WWF-UK, each of which spans three years — one in Colombia and another in East Africa.

Expanding our current involvement in project finance and people engagement, we are working with more KPMG firms to expand our funding and involvement with WWF initiatives. Similar collaborations with WWF exist in KPMG firms in China, Germany and Australia, which collectively contribute over US$1 million to WWF globally and form the foundation for growing KPMG and WWF collaboration.

“At WWF, our mission is to create a future in which people and nature can thrive together. KPMG International is supporting our urgent efforts to halt the decline of nature and protect and restore ecosystems, specifically in two key WWF-UK supported programs, the Trillion Trees initiative in East Africa and our work to secure Colombia’s Protected Areas in the Amazon. Furthermore, we are excited to be exploring how both organizations can use our collective skills, reach and influence to advance the business and nature agenda — making a difference for the planet and society.”

Claudia Codsi
Director of Private Sector Partnerships, WWF-UK

People of KPMG

Fiorella's portrait

Fiorella Sanchez

KPMG in Belgium

I’m a biologist, passionate about nature and biodiversity, and I came to KPMG to make the difference.

In my role with KPMG in Belgium, I advise and help guide clients to shape their business practices to meet environmental regulations.

I was born and raised in Costa Rica, a land of nature. I’ve worked for non-profits throughout my career and coming to KPMG was an opportunity to increase my impact. I believe businesses have huge potential to make transformative change. The possibilities for innovation, efficiency, speed of progress — you can’t find that anywhere else. As a consultant, I am able to support and advise clients in many different sectors on strategies, actions and recommendations that help get us one step closer to a nature-aligned society.

My work goes hand-in-hand with the efforts of many of my extraordinary colleagues from across other KPMG firms to advance the biodiversity agenda. I am able to work with people from all over the organization who have expertise in biodiversity, but also in other areas such as strategy, technology, supply chain and the circular economy. Together, we jointly deliver multi-disciplinary projects that we wouldn’t be able to deliver without collaboration.

I’m currently working on a project close to my heart, delivering tangible and actionable opportunities for companies to use for their own circular economy approaches and help reduce their impact on biodiversity.

As I continue this journey, my commitment remains unchanged — to work collaboratively toward a future where businesses harmonize with the environment, creating a positive impact on both nature and the communities in which we work and live.

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Case study

Powering the blue economy in Papua New Guinea: KPMG Australia

KPMG is taking on a world-first project to help devise and launch a blue economy business incubator in collaboration with the United Nations Development Program (UNDP). The project brings together KPMG professionals from Papua New Guinea, Canada and Australia and subject matter experts from across the globe.

The 18-month pilot will take place in Kimbe Bay, a picturesque hotspot for ocean biodiversity in the West New Britain Province of Papua New Guinea. The project will focus on: accelerating sustainable livelihood opportunities linked to the marine environment, empowering women-led enterprises and supporting Papua New Guinea’s incredible coral reef ecosystems.

KPMG will first identify potential participants and then draft a plan for the incubator businesses and revenue plans.

The team will then work with five chosen businesses, each one related to the local coral reef and sea, to help develop prospectuses and build their reach, whether it be ecotourism, sustainable fishing or seaweed harvesting.

The blue economy presents opportunities for new business models that enhance marine biodiversity and climate resilience. This growing sector is making a significant impact on the economies of all Pacific nations. The three KPMG firms are working closely together to deliver this exciting engagement for one of our largest clients in the development aid sector.

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Report hub

Download our reports for more detail on KPMG activities this year, and in previous years.

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Throughout this content, “we”, “KPMG”, “us” and “our” refers to the global organization, to KPMG International Limited (“KPMG International”), or to one or more of the member firms of KPMG International Limited, each of which is a separate legal entity.

“Reporting KPMG Firms” means KPMG firms in 20 large countries and territories, including member firms whose senior partner is also a Global Board member. These countries and territories are Australia, Brazil, Canada, China, France, Germany, India, Ireland, Italy, Japan, Mexico, the Netherlands, Poland, Singapore, South Africa, South Korea, Spain, Switzerland, the UK and the US.

KPMG International Limited provides services and support to, or for the benefit of, KPMG firms and does not provide professional services directly, or indirectly, to clients. Professional services to clients are exclusively provided by KPMG firms who remain solely responsible for and liable in respect of these services.

KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity, and/or to KPMG International Limited. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit kpmg.com/governance.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Climate change performance data for FY23 has been collected from 75 KPMG firms including Reporting KPMG Firms. Although KPMG International has not obtained third-party verification of the emissions data in this report, a number of the KPMG firms have had their underlying data independently verified. To estimate total emissions on a global basis on the basis of the data collected from the relevant KPMG firms, KPMG International’s methodology for relevant emissions and/or carbon claims is in accordance with the globally recognized Greenhouse Gas Protocol (GHG Protocol), developed by the World Business Council for Sustainable Development and the World Resources Institute. The GHG Protocol provides standards and guidance for companies and other organizations preparing a GHG emissions inventory, also known as a carbon footprint. For more information download the full PDF.