0
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.Decorative Background imageKPMG Logo
KPMG UK
ESG Assurance 
Services
Building confidence in your ESG disclosures
October 2021
kpmg.com/uk

© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global 
organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.Background image of Windmill
Introduction
Demand for clear and transparent ESG information 
is growing as government regulation strengthens 
and stakeholder expectations rise. As a result, 
companies are increasingly reporting on non-
financial information in their annual reports and suite 
of ESG reporting. ESG is now a Board level issue for 
many companies in the UK. There is also an 
expectation on financial statement auditors to 
perform additional procedures on the front half of 
accounts, and management are looking to ESG 
reporting to convey strategy, meet public 
expectations, and help to manage risk. Lenders 
focus on reporting to inform credit availability, and 
investors use ESG reporting to inform capital 
allocation decisions, risk premiums, and to assess if 
a firm suits their investment mandate or strategy. 
Finally, regulators are showing increasing interest 
through requirements under the UK Companies Act, 
the Taskforce for Climate Related Financial 
Disclosures, the Department for Business, Energy 
and Industrial Strategy (BEIS) and EU Requirements. 
KPMG are experts in delivering a number of 
different types of ESG assurance to help companies 
build confidence in their ESG reporting within this 
changing landscape, with over 50 KPMG member 
firms in our global network offering specialist 
knowledge and understanding of the complexity of 
diverse regulatory frameworks. Our specialised
team has amassed a wealth of experience working 
with large global clients. Our technical experience 
on ESG reporting enables us to provide feedback 
and recommendations throughout the assurance 
process, thereby ensuring each client receives the 
highest quality assurance and the utmost care. 
KPMG has a dedicated ESG Assurance team which 
can provide both data assurance and principles-
based assurance, depending on our client’s needs. 
Our assurance services can be provided to both 
audited entities and non-audit clients. This can 
include assurance over principles such as the Global 
Reporting Initiative (GRI) or the Task Force for 
Climate-Related Financial Disclosures (TCFD), green 
bonds assurance, ESG-linked financing assurance, 
full report assurance, or specific data metrics 
assurance, as well as readiness assessments for 
non-audit clients. 
11

2
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
2
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
The value of assurance Decorative icon in each section
Enhanced creditability
Signal to stakeholders not only that 
these metrics have been reviewed by 
an independent party, but also that the 
metrics are genuinely important to 
company.
Benchmark to best practice
We can provide insight into disclosures 
seen elsewhere in the market and 
enhance the overall quality of non-
financial reporting.
Audit efficiency
There are a number of synergies to 
benefit from when KPMG are providing 
ESG assurance alongside the statutory 
audit. 
Drive improvement
In addition to our ISAE (UK) 3000 ESG 
assurance opinion, we can provide 
improvement observations on the 
company’s ESG process and controls. 
This will focus on the quality of data 
which is frequently an area where 
management oversight and rigor is not 
as strong as for financial reporting.
Regulatory red lines
Understanding and proactively 
managing your risks is key to 
developing a business that is ‘regulation 
ready’ and resilient to changing 
legislative demands.
Why KPMG
Audit rigour
Our team combines ESG subject matter 
experts with qualified accountants, 
experienced in the rigour and 
requirements of financial audit and non-
financial information assurance. 
Connected team
Our team works collaboratively with 
other ESG specialisms and teams 
across KPMG in the UK and globally to 
make sure that clients get the right 
subject matter experts.
Reporting is often both the start and the 
end of a client’s ESG journey.
Tailored approach
Our team understand that every client is 
different, and we tailor our approach 
accordingly.
We are experienced at designing 
support to all budgets, and provide 
valuable insight and challenge at the 
right level for each individual client.
Reporting experts
Our team is passionate about 
integrating ESG information into broader 
corporate reporting, to ensure that 
businesses efficiently articulate their 
true value and long term sustainability.
We understand broad corporate 
reporting requirements, in addition to 
specific ESG requirements.
Latest developments
The ESG reporting landscape is 
changing rapidly, with new mandatory 
requirements being introduced and 
existing standards becoming more 
aligned to one another.
Our team are at the forefront of these 
changes and can provide insight into the 
future of reporting.

3
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
3
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
ESG Assurance
Overview
Environmental, Social and Governance (ESG) metrics and disclosures are an increasing focus for 
businesses as they respond to a wave of scrutiny from stakeholders - from investors and regulators to 
employees, customers, and the public. Expectations are changing rapidly, and the range of ESG 
metrics and disclosure frameworks used is vast and varies by sector, size, and complexity of 
business, as well as global location. 
How KPMG can help and what we offer 
We offer assurance over KPIs across the E, S, and G of ESG, including this non-exhaustive list of 
examples: 
E (Environmental)
Energy and climate
— Energy consumption
— % of renewable energy
— Energy intensity
— Reduction in energy, emissions, 
and intensity
— Scope 1, 2 and 3 emissions
Air Quality and Emissions
— NOx and SOx
— Air emissions
Materials
— Volume of materials used
— Recycled materials %
— Reclaimed products
— Packaging composition
Supply chain
— Suppliers screened using 
environmental criteria
— Environmental impacts in the 
supply chain
Waste
— Waste generated
— Waste disposal
— % waste sent to landfill
Water
— Withdrawal volume
— Consumption 
— Recycled and reused 
water volume
— Discharged
— Water quality (BOD, COD)
Biodiversity
— Operational sites in 
protected areas
— Site in areas of high 
biodiversity value
— Impact on biodiversity
— Habitats protected / restored

4
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
4
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
ESG Assurance cont.
S (Social)
Employee benefits and satisfaction
— Employee turnover
— Parental leave
— Notice period length
— Benefits for full time and part 
time employees 
Human rights
— Child labour
— Forced labour
— Collective bargaining
— Human rights policies
— Employee training
Laws and regulations
— Non-compliance with health and 
safety regulations
— Political contributions
— Non-compliance with labelling 
and disclosures
— Customer data protection
Health and safety
— Occupational health and safety
— Injuries and illnesses
— Reportable incidents
— Incident rate 
Diversity
— Gender diversity and pay gap
— Ethnicity pay gap
— Governance bodies’ composition
— Ratio of salary and remuneration 
by gender
— Discrimination incidents
Supply chain
— Impact on communities
— Development programmers
— Suppliers screened using 
social criteria
G (Governance
Structure
— Governance structure
— Delegating authority
— Body responsible for ESG
— Role of the highest body in 
setting strategy
— Evaluation of performance
Compensation
— Remuneration policies
— Process for determining remuneration 
— Stakeholders’ involvement in remuneration 
— Annual total compensation ratio
Measurement and review
— Identifying ESG impacts
— Effectiveness of risk 
management processes
— Communicating concerns
— Nature and total number of critical 
ESG concerns

5
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
5
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
Other Assurance
Gender Pay Gap 
Overview 
Reporting on pay gaps helps companies to understand the size and causes of their pay 
gaps and identify any issues that need to be addressed. Employers in the UK with more 
than 250 employees are required to publish gender pay gap data every year. Employers 
must publish six calculations which reflect the difference in bonus and base pay between 
males and females across the whole organisation, irrespective of their role or seniority.
How KPMG can help and what we offer  
KPMG can review your Gender Pay Gap disclosures and perform assurance under ISAE 
(UK) 3000 over the reported metrics and disclosures, in line with UK Government 
regulations. This provides confidence to stakeholders that reported figures are in line with 
legal requirements and best practice for Gender Pay Gap reporting. 
Carbon Emissions Reporting
Overview 
The Companies Act (2006) requires all UK large companies to report on their greenhouse 
gas emissions as part of their annual Directors’ Report. Under the recently introduced 
Streamlined Energy and Carbon Reporting (SECR) requirements, large companies must 
disclose their UK energy use, greenhouse gas emissions and intensity metrics. 
Additionally, quoted companies must report on their global emissions and energy use. 
Whilst not a SECR requirement, obtaining assurance is recommended as best practice to 
ensure the accuracy, completeness and consistency of data.
How KPMG can help and what we offer  
KPMG can provide both pre-assurance and assurance over Scope 1, 2, and 3 emissions, as 
well as the intensity metrics reported. We can help ensure that our clients are reporting in 
line with regulatory requirements and industry standards, ensuring best practice in reported 
metrics and disclosures.

6
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
6
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
Other Assurance cont.
Climate-related Financial Disclosures
Overview 
Financial markets are increasingly demanding comprehensive information from companies 
about the risks and opportunities associated with climate change. The Task Force on 
Climate-related Financial Disclosures (TCFD) aims to improve and increase reporting of 
climate-related financial information. The UK has made TCFD-aligned disclosures 
mandatory (comply or explain) for premium listed companies for periods starting on or after 
1st January 2021, with the intention of expanding the scope across the economy by 2025. 
Assurance is not currently compulsory, however receiving external assurance over these 
TCFD disclosures helps to safeguard investors’ interests and ensures disclosures are in 
line with best practice based on assurance of similar front half of annual report ESG 
disclosures. We also expect that assurance will become mandatory in the near future.
How KPMG can help and what we offer  
KPMG can review and provide assurance over your governance, strategy, risk 
management disclosures and the metrics reported under ISAE (UK) 3000. Additionally, 
KPMG can review disclosures to confirm adherence to the TCFD principles as set out 
within the TCFD Implementation Guide.
Green, Social, and Sustainable Bonds 
Overview 
The transition to a sustainable global economy has driven increased interest in the 
financing of investments that provide a clear ESG benefit. This is reflected in the rapid 
growth of the fixed income market, in particular the use of bonds with a clear use-of-
proceeds structure, such as green bonds, social bonds and sustainability bonds. The ICMA 
Green Bond Principles (GBP), the Social Bond Principles (SBP) and the Sustainability Bond 
Guidelines (SBG) have become the leading framework for the issuance of sustainability 
bonds. Although voluntary, this guidance recommends assurance of these bonds for 
transparency.
How KPMG can help and what we offer  
KPMG can perform verification over the use of proceeds or impact reports, offer non-
audited entities a readiness assessment, and offer a workshop to upskill staff on the 
requirements of the assurance process for green bonds.

7
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
7
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
Other Assurance cont.
Sustainability-Linked Financing
Overview
ESG factors are fast becoming a strategic priority which has resulted in rapid market 
growth for sustainability-linked bonds (SLBs) and sustainability-linked loans (SLLs). These 
are forward-looking performance-based instruments with a flexible structure which offers 
a reduction in basis points associated with performance against ESG metrics, which are 
typically linked to KPIs in annual reporting. ICMA’s Sustainability-Linked Bond Principles 
(SLBP) dictates that SLB issuers should publish information on their performance against 
the selected KPIs and should obtain a verification assurance report relative to the 
Sustainability Performance Targets. Additionally, some UK companies have begun to offer 
their suppliers sustainability-linked financing to encourage companies to monitor, report 
and improve their impact.
How KPMG can help and what we offer 
KPMG can provide limited/ reasonable assurance per ISAE (UK) 3000 in respect of the 
KPIs which underpin the sustainability-linked finance. Additionally, KPMG can provide 
limited/ reasonable assurance per ISAE (UK) 3000 regarding the Sustainability Performance 
Targets, as advised by the ICMA’s SLBP guidance. Additionally, in some instances, KPMG 
can meet the requirements for facility agreements with regards to sustainability-linked 
loans with Agreed-upon-Procedures under ISRS 4400. For supplier sustainability-linked 
financing, KPMG can provide assurance over metrics used to measure performance of 
suppliers and can also critically challenge and assure the processes and controls in place 
for monitoring the supply chain.Background image of Mountains

8
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
8
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
Other Assurance cont.
Impact Reporting
Overview
Investors are increasingly concerned about the Environmental, Social and Governance 
(ESG) impact of their investments. This has created a demand for asset managers to report 
on both the positive and negative impact of their investments. The Operating Principles for 
Impact Management (OPIM) provides a reference point against which the impact 
management systems of funds and institutions may be assessed. Signatories are required 
to publish an annual Disclosure Statement in which they describe how the OPIM Principles 
are incorporated into their investment process and the extent of its alignment with each 
Principle. Additionally, each Signatory must provide regular independent verification of the 
alignment of its impact management systems with the Impact Principles.
How KPMG can help and what we offer 
KPMG can provide limited/ reasonable assurance for asset managers over Impact 
Reporting under ISAE (UK) 3000, this assurance can either cover the full report or specific 
sections of the report. In respect of the OPIM Principles, KPMG can provide independent 
verification of the alignment of impact management systems with the Impact Principles 
and can highlight aspects of systems and processes where alignment may be enhanced.
UN PRB
Overview
The United Nations Principles for Responsible Banking (UN PRB) helps the banking 
industry demonstrate how it makes a positive contribution to society. The UN PRB 
includes six principles which provide the framework for a sustainable banking system, 
encouraging alignment with the Sustainable Development Goals and the Paris Climate 
Agreement. 18 months after signing the UN PRB, signatory banks must report on their 
impact, how they are implementing the Principles, the targets they have set and the 
progress they have made. No later than four years after becoming a signatory to the 
Principles, banks are required to obtain limited assurance over these disclosures. 
How KPMG can help and what we offer 
KPMG can provide limited/ reasonable assurance over the UN PRB disclosures under ISAE 
(UK) 3000 and was involved in the development of the UN PRB Guidance for Assurance 
Providers. The assurance provided is principles-based and evaluates whether the 
description of the bank’s processes and activities and their outcomes sufficiently reflect 
what the bank has done, rather than evaluating the applied approach itself.

9
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
Assurance optionsBackground image of trees
There are a range of third party assurance options that 
KPMG can provide to businesses seeking assurance 
over ESG disclosures. Assurance products can be 
strengthened in subsequent reporting cycles until the 
desired level of assurance is obtained. Assurance can 
be provided over selected quantitative or qualitative 
disclosures or over the full suite of disclosures. 
Assurance Readiness
Assessment:Decorative icon in each section
The first step on the road to third party assurance is for 
an entity to develop in-house reporting criteria based 
on relevant guidance. In our assurance readiness 
assessment, we assess whether your reporting criteria 
are a suitable basis for third party assurance by 
considering the crucial qualities of relevance, 
completeness, reliability, neutrality, and 
understandability. Gap analysis is provided to show 
where any development is needed.
Agreed Upon Procedures:
A tightly defined scope of work set by the entity 
seeking a factual report of findings over selected 
areas of ESG disclosures.

10
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.
Assurance options (cont.) 
There are various options for this 
type of assurance:
Assurance opinions can be made privately or made available to the public.
Private opinion
A private opinion can be issued for internal use. 
This may be a desirable option for first-time 
assurance, providing the option to learn from the 
assurance process before committing to public 
assurance. 
Public opinion
A public opinion may be made available to the public and 
is published alongside the disclosures that are being 
assured. This demonstrates the completeness and 
accuracy of disclosures to users of the report.
We can provide limited or reasonable assurance.
Limited assurance
A lower level of assurance than that provided in a 
financial statements audit.
The assurance provider performs a more limited set of
procedures compared to those required to give 
reasonable assurance. 
Reasonable assurance
Reasonable assurance is a similar level of assurance 
as provided in a financial statement audit.
 Although this level of assurance is less common for 
ESG disclosures in the UK, we believe that the 
importance of this subject matter means market 
leaders will adopt reasonable assurance voluntarily in 
the coming years, while the longer term regulatory 
horizon suggests this could ultimately become 
mandatory.

11
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, 
a private English company limited by guarantee. All rights reserved.KPMG logo
Contact UsHeadshot of George Richards;
George Richards;
ESG Corporate Reporting & Assurance Lead;
T: +44 7919 110279’
E: George.Richards@kpmg.co.uk;

Headshot of Sophie Bailey;
Sophie Bailey;
Assurance Senior Manager;
T: +44 07468 365967;
E: Sophie.Bailey@kpmg.co.uk;

Headshot of Annie Curie;
Annie Curie;
Assurance Assistant Manager;
T: +44 7596 952842;
E: Annie.Curie@kpmg.co.uk;


Some or all of the services described herein may not be permissible for KPMG audited 
entities and their affiliates or related entities.
kpmg.com/ukSocial media icons
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 endeavour 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.
© 2021 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG 
global organisation of independent member firms affiliated with KPMG International 
Limited, a private English company limited by guarantee. All rights reserved. 
The KPMG name and logo are trademarks used under license by the independent member 
firms of the KPMG global organisation..
Designed by CREATE | CRT137836A