KPMG:
Our Impact Plan
2023 update

KPMG International

kpmg.com/ourimpactplan

Our highlights at a glance
GovernanceInvitedmore than 500 key
global suppliers
to disclose theircarbon-footprint data

Initiated steps with our global
suppliers to

identify potential modern
slavery issues

50:50
gender balanceof our Global Management Team

PeopleLaunched

our first global LGBTQ+
inclusion statement

in collaboration with our Global
Pride Network
Appointed an

Inclusion, Diversity &Equity Leadin all Reporting KPMG Firms1

All KPMG firms whose senior partner is also a Global Board
member haveappointed Heads of Our Impact Plan

to help our organization execute on our commitments and drivechange globally

Representationof women in
leadership
across our KPMG firms
sits at 27.4%, up
0.8 percentage points
from FY21

48.5%
representation of womenin overall headcount based on partners and staff employed asof 30 September 2022, up by 0.1 percentage points from FY21

1 “Reporting KPMG Firms” means KPMG member 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. The corresponding data from FY20 and
FY21 included data from Russia which is no longer part of the KPMG network.

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KPMG: Our Impact Plan

2

Planet

Prosperity

9% emissions reduction

Building a sustainable global organization withagainst FY21 performance — and a 25% reduction
against our 2019 baseline

Reporting KPMG Firms

reached the targetof 100% renewableenergy in FY22

Started working with the CDP
Supply Chain program to help

improve the accuracyof our reporting

Developed a circularity strategy
and roadmap for our operations, including our
supply chain

US$34.64 billion

in annual aggregated revenues for KPMG firms globally, up
14% from FY212

US$148 million

US$2.0 billion

in financial support to local
communities, up

in operational taxes paid
across Reporting KPMG
Firms (up from
US$1.8 billion in FY21)3

18% from FY21
618,000
volunteer hours
up 28% from FY21

2 14 percent is based on the growth in continuing operations and excludes the FY21 and FY22 revenues from businesses sold or countries from which KPMG exited during this period.
When not restated, the revenue growth is 13 percent.
3 Operational taxes include employer payroll and social security taxes, non-creditable sales taxes, property taxes, entertainment taxes and other miscellaneous taxes; they don’t include thepersonal tax member firm partners pay.

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KPMG: Our Impact Plan

3

A message from our
Global Chairman and CEO
Making change meaningful

KPMG is at its best when our many thousands of people
are working side by side with each other and our clients
to solve problems, both big and small. We do it every day,bringing the best people, the most innovative technology,
and all of our collective experience to help businesses,
governments, non-governmental organizations and thecommunities in which we work.

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KPMG: Our Impact Plan

4

Through Our Impact Plan, we turn the mirror on
ourselves, which is why I am pleased to provide
this annual update on our progress to meet ourcommitments. We analyze what we can and should
be doing to meet our responsibility to help shape abetter future by doing what we do best — solving
problems to make lasting, meaningful change.
This past year saw us make important strides ineach of our four priority areas: Governance, People,
Planet and Prosperity. Highlights include reaching a
25 percent carbon emissions reduction against our2019 baseline, achieving a 50:50 gender balance on
our Global Management Team, and using our scale toinvite more than 500 key global suppliers to disclose
their carbon footprint data. There are plenty more
examples showing the actions we are taking to meet
our responsibility.

We know that we need to do more to match the
expectations and needs of a world that is changing
very quickly. That’s why we want to be transparent
about our progress. We want our people, our clientsand everyone who relies on us to understand where
we are and where we are going. But one of the mostimportant lessons we’ve learned since we started thisjourney is that meaningful change takes commitment
and, ultimately, time.
I am confident that we’ll get there though, and it’sgoing to take the focus and determination of all of our
260,000 people to do it.
With people across the world impacted by the
many significant global challenges, it’s importantto focus perspective on what matters most. I firmly

believe businesses are a critical component to themany solutions needed to the pressing challenges
our communities and society face. And I remain
convinced, seeing it at KPMG every day, if confronted
with a problem, that humanity's capacity to create asolution is limitless.
We continue to work together to create meaningfulchange, and Our Impact Plan is our roadmap to getthere. Thank you for taking the time to learn more
about how KPMG is changing itself — Together. For
Better.
Bill Thomas
Global Chairman and CEO
KPMG International

We analyze what we can and should be doing to meet
our responsibility to help shape a better future by doing
what we do best — solving problems to make lasting,meaningful change.

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KPMG: Our Impact Plan

5

Contents

77

07

Activating
our ESGcommitments

Material topics
Understanding thematerial topics relevant
to our business and our
stakeholders.

Further
insights
Global Transparency
Report 2022
2022 Corporate
Reporting

11

27

48 62

GovernancePeoplePlanetProsperity

Our Purpose and Values
guide everything we do.

Creating a caring,
inclusive and Valuesdriven culture for ourpeople.

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

How we’re making
a positive social andeconomic impact.

How our ESG
commitments areembedded into how
we operate as a globalorganization.

80

Indexes andexplanations

All images in this report are of KPMG people from around the world.
For details on the basis of preparation and our alignment with the World Economic Forum International Business Council's Stakeholder Capitalism Metrics, refer to the “Indexes and explanations” section on page [80].
Our Impact Plan represents the collective environmental, social and governance commitments of independent KPMG member firms, affiliated with KPMG International Limited. The data represented in Our Impact Plan isaggregated data from KPMG member firms for the 12 months to 30 September unless stated otherwise. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients.
Where the terms “KPMG”, “firm”, “we” or similar references are used without definition, they are intended to refer to KPMG International Limited and the independent KPMG member firms.

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KPMG: Our Impact Plan

6

01 Material topics

02 GovernanceMaterial topics

03 People

04 Planet

Understanding the material topics relevant to our business and our stakeholders.

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our approach to materiality
We’re committed to building a better KPMG. One way we’re doing that is through regular materiality assessments
to help ensure we’re focusing our attention and resources in the areas where we can make the largest impact.
In the past year, we reexamined the list of our
12 material topics shared in last year’s Our Impact
Plan within the context of recent geopolitical events,changes in our stakeholder and business priorities,
relevant reporting standards like the Global Reporting
Initiative (GRI), and emerging data and insights fromour key stakeholders. We took the following into
consideration:•	data from independent trust research conductedannually (3 May to 15 July 2022) in our eight
key markets (Australia, Canada, China, France,
Germany, Japan, the UK and the US), including
views from the C-suite, wider stakeholders(including industry and trade associations,academics, non-governmental organizations

and advocacy groups, multilateral organizations,business analysts and investors) and theinformed public•	data from the Employee Engagement Index and
Employee Trust Drivers from our Global People
Survey•	our most significant business risks using
our proprietary Dynamic Risk Assessment
methodology

In the past year, we
reexamined the list of our
12 material topics sharedin last year’s Our ImpactPlan•	material topics identified by KPMG firms andthose published by other large global professional
services organizations© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

7

01 Material topics

02 Governance

We’re committed to continuing to improve and refine
our methodology as well as reporting on our material
topics. We anticipate that our reporting will, overtime, transition to adopt the new standards set by theInternational Sustainability Standards Board (ISSB).
We continue to disclose and explain how we’ve
applied the World Economic Forum International
Business Council Stakeholder Capitalism Metrics,
as well as other reporting frameworks, including theUnited Nations (UN) Global Compact Principles.

03 People

12 material topics
Our assessment exercise confirmed that the 12
material topics identified in our previous materiality
assessment continue to be the most relevant toboth our stakeholders and our organization acrossfour priority areas: Governance, People, Planet
and Prosperity. In Our Impact Plan, we set out
commitments that respond to these material topics,
reporting our progress transparently and identifying
where we have gaps.

04 Planet

While all material topics remain the same this year,
three topics have increased in focus:

05 Prosperity•

06 Activating
our ESGcommitments
07 Indexes andexplanations

Our Impact Plan sets out the commitments
we’re making on our journey to become a betterbusiness and reaffirms our commitments to
the UN Global Compact Principles and the UN
Sustainable Development Goals.

•	
Talent experience: We heard from our people
in the annual Global People Survey that talentexperience — which includes compensation,
inclusion, diversity and equity, employee healthand well-being — continues to be the mostimportant material topic for our people. To help
address that, we’ve rolled out significant programs
to support our people and provide them withresources to help them stay healthy and remain
productive, as detailed in our People section.

Environmental sustainability: Most external
stakeholders surveyed in our independent
trust research conducted in 2022 noted that
“demonstrating commitment to environmental
sustainability” was increasingly important for
professional services organizations. We continue
to see this as a priority and have committed
to making ESG a watermark that runs throughour business and operations, as detailed in ourPlanet section.

•	
Information protection: There’s continued
focus on information and data protection due
to an increase in cyberattacks globally and theneed for all businesses, including large global
professional services organizations, to protect
and manage data in an effective and secureway. We’ve built, maintained and evolved an
information security program that supports
the protection of our people’s and clients’ data
against loss and exploitation, as detailed in our
Governance section.

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KPMG: Our Impact Plan

8

How our 12 material topics connect to our commitments outlined in Our Impact Plan:

01 Material topics

Governance
1. Ethics, integrity and independence

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

We’re committed to the highest standards of
personal and professional behavior in everything
we do. Ethics and integrity are core to who we are
and why everyone at KPMG is responsible andaccountable for their conduct.
• Acting transparently with accountability and integrity• Human rights

4. Information protection

5. Purpose, culture and values

We have policies, processes and controls that
address confidentiality, information security and data
privacy. We provide annual training on confidentiality,
information protection and data privacy requirements.
Our clients and stakeholders entrust us with sensitive
information, and we’re committed to observing
applicable laws and regulations and investing insystems to help keep them safe and secure.

We’re led by our Purpose — to inspire confidence
and empower change — and driven by our Values increating a caring and inclusive culture that provides ourpeople with opportunities to make an impact, solve
challenges and tap into their passion for doing workthat matters.
• Purposeful business: Our Values and what
we stand for• Purposeful business: Client confidentiality,
information security and data privacy

2. Transparency and accountability
All KPMG firms are committed to our shared
Purpose and Values, standards and service quality
expectations. Our clear governance and practicemanagement standards help ensure we’re driving
consistency and accountability across our entire globalorganization.
• Acting transparently with accountability andintegrity
3. Relevant, quality services in the public interest
We have a fundamental commitment to serve thepublic interest and build trust. We do this by leading
in audit quality, driving responsible tax practices andadvising clients on ways in which they can transformtheir business to help create sustainable value —embedding ESG into client services.
• Purposeful business• Economic contribution© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

9

01 Material topics

02 Governance

03 People

PeoplePlanetpace of technological change, positioning us for future
success so we can meet stakeholder expectations andgrowth objectives.

6. Talent attraction, development and retention

9. Environmental sustainability• Purposeful business

By fostering an environment that values continuous
learning and development, we empower our people
with tools to help them succeed and make their mark.
We’re focused on growth and upskilling our talent withleading technologies and future-proof skills.

• Decarbonization• Learning and development

Human activity has changed the Earth’s natural
capabilities — pushing planetary boundaries andthreatening humanity’s very existence. Addressing
climate change, water pollution, deforestation andbiodiversity loss is a key to enabling responsible
growth. We’re committed to driving a culture ofsustainable practices within our global organization,
supply chain and beyond to help ensure a healthyplanet for generations to come.

• Employment• Decarbonization• Inclusion, diversity and equity• Health and well-being

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

7. Inclusion, diversity and equity (IDE)
Unique experiences and perspectives enhance
KPMG and help create the drive for a fairer, more
equitable society that includes everyone. We’recommitted to embedding and improving IDE acrossour global organization — encouraging people tocome as they are.
• Inclusion, diversity and equity• Employment
8. Health, well-being, workload and job security
To create opportunities for themselves and others,
our people should be at their best, both physically andmentally. Our responsibility is to help our people to behealthy, secure and supported through the challenges
in their personal and professional lives — enablingthem to thrive.
• Health and well-being

12. Impactful community initiatives
We’re committed to having a positive impact on
the communities we serve, and we’re increasing
our investment in a wide range of social initiatives
with an emphasis on education for youth andunderrepresented populations.
• Uplifting our local communities• Climate risk
• Nature and biodiversity

Prosperity
10. Financial, operational and brand resilience
Through a diverse business model that emphasizes
strong and agile processes and practices, we’re well
positioned to remain resilient in increasingly complex
and volatile environments — promoting wider
economic growth and prosperity.
• Economic contribution
11. Technology and innovation
Our continual investment in technology and innovation
helps ensure we’re keeping up with the accelerating© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

10

01 Material topics

02 Governance

Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our Purpose and Values guide everything we do.
For more than 150 years, we’ve inspired confidence while empowering change.
Our purpose is rooted in rich history, built on our role to protect the public interest
while shaping a better future for our people, clients and broader stakeholders.
The pressures on business and society are rapidly increasing. With newchallenges facing the world, our purpose is more relevant than ever.
At KPMG, we know that trust is earned by doing the right thing. To inspire
confidence and empower change, we need to consider the economic,
environmental and social impact of our activities, align our financial and societal
performance as part of a shift toward stakeholder capitalism, and have strong
governance in place to oversee all of our activities.

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“We must be ready to see and respondto the business opportunities — not justthe risks — presented by transforming
businesses and communities to address
ESG challenges. Without a healthy world,
there is no sustainable business.”

Jane Lawrie
Global Head of Corporate Affairs
KPMG International

KPMG: Our Impact Plan

11

Our commitments
01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Purposeful business• Always act with a clear purpose• Lead the profession in audit quality• Drive a responsible tax practiceActing transparently withaccountability and integrity• Act lawfully, ethically and in the public interest• Work against corruption in all its forms, including extortion and bribery

Human rights• Respect human rights© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

12

Purposeful business
01 Material topics

Our commitment: Always act with a clear purpose
02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

We commit to always acting with a clear purpose,reflecting the meaningful work we do for our clientsand our positive impact on society as a whole tosustainably grow our business. That’s how webelieve we’ll achieve our ambition: to be the mosttrusted and trustworthy professional services
organization.
We will continue to strive toward ESG as thewatermark that runs through KPMG — empowering
our people to become agents of purposeful change,
leveraging our global talent to help clients andseeking to apply industry best practices throughout
the global organization.

Our structure and governance
KPMG has strong governance for overseeing ouractivities, setting policies and aligning our strategy with
our purpose. KPMG International Limited acts as theco-ordinating entity for the overall benefit of the KPMG
global organization. Its governance bodies are composedof the Global Council, the Global Board, the Global
Management Team (GMT) and Global Steering Groups.

Our Purpose
By inspiring confidence in our people, clientsand society, we help empower the change
needed to solve the toughest challenges andlead the way forward.
PeopleWe are a people business.
Our people crave opportunities to domeaningful and impactful work whiledeveloping a thriving career in an inclusive,
diverse and caring culture.
Clients
We stimulate trust and confidence in business.
Our clients seek our expertise to overcome
vast challenges ahead and to grow sustainably.
Society
We have a responsibility to build a sustainable
future.
Society expects a fairer, more equitable futurethat doesn’t come with such deep costs topeople and our planet.

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Global Board
The Global Board is the principal governance andoversight body, currently consisting of 22 members
from diverse jurisdictions that reflect KPMG’s global
presence. The key responsibilities of the Global
Board include approving global strategy developedby the GMT working together with the Executive
Committee of the Global Board; protecting,promoting and enhancing the KPMG brand andreputation; overseeing the activities of the GMT;
and approving significant policies with which KPMG
firms must comply. It also approves the admittanceor termination of KPMG firms as members of ourglobal organization. Find out more about our Global
Governance in our Global Transparency Report 2022.
Global Management TeamThe Global Board has delegated certain
responsibilities to the GMT. These responsibilities
include developing the global strategy by working
together with the Executive Committee of the Global
Board, jointly recommending the global strategy to
the Global Board for its approval and overseeing theactivities of the Global Steering Groups. The GMT
also supports KPMG firms in their execution of the
global strategy and KPMG International decisions
and policies, including holding them accountable
to their commitments. The list of GMT members isavailable on the leadership section of our website.

KPMG: Our Impact Plan

13

Our Values and what we stand for

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our Values guide our day-to-day behaviors,
informing how we act, the decisions we make andhow we work with each other. They’re embeddedin the entire employee journey, in our businessprocesses and in all of our stakeholder interactions.
By living our Values and considering the impact of ourwork from a broad range of perspectives, we aim to
be a purposeful business, fostering prosperity andhelping address key issues faced by our clients andtheir stakeholders.
In 2022, KPMG in the UK conducted the first Values
Week — designed to build better awareness andunderstanding of our Values, and to encourage ourpeople to take greater ownership and accountability forliving them. Each day focused on a different Value witha diverse line-up of guest speakers. The result was thatthe majority of the almost 12,000 participants reported
that they believed that KPMG is committed to building
a culture guided by our Values.
Many of our member firms use the Values to guiderecognition programs that regularly remind ourpeople of the behaviors we value. In addition, they’reembedded in a number of core processes, such as
our 360-degree assessments that have been adopted
by 48 KPMG firms.
Our Values are:• Integrity: We do what is right.
•	
E xcellence: We never stop learning and improving.
• Courage: We think and act boldly.
•	
Together: We respect each other and draw strength from our differences.
For Better: We do what matters.
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KPMG: Our Impact Plan

14

People of KPMG
01 Material topics

Richard Boele
KPMG Australia

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

In 2022, I became KPMG Australia’s first
Chief Purpose Officer (CPO) and the firstamong KPMG firms.
Having spent my early career working in andwith businesses to identify and addresshuman rights risks, I have always been
profoundly aware of the impact
organizations have on the world aroundthem and the critical role they can playwhen combining purpose with profit.
As CPO, I’ve been given a mandate to
make purpose the North Star that defines
everything KPMG Australia does. I’m
responsible for helping the Australian firmnavigate toward that North Star.
I’m also a challenger. I sit on various
committees, constructively challenging mycolleagues to put purpose at the center of theirdecision-making and helping them to consider
how their decisions sit alongside thecommitments we made as a firm.
And the third part of my role is to enable. I workwith partners across the Australian firm, as wellas other KPMG firms, to help articulate their
purpose and explore how that purpose nests
with our global purpose. I also help them findways to meaningfully act on it.
It’s exciting to be part of a business that puts
purpose at the top of its strategy and is carving
out new roles, like my own, that can help makeits purposeful commitments a reality every day.
I hope that the lessons and experiences I havein this role will help KPMG firms create
structures that better drive our commitments
and purpose.

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KPMG: Our Impact Plan

15

Creating future leaders
We’re fostering and investing in programs that will
help enable purpose-driven future leaders within
KPMG.
01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations•	The Leaders 2050 network empowers young
professionals with the skills and platform to play
an active role in shaping the transition to net
zero. After launching in KPMG in the UK, we’ve
expanded the program globally, welcoming
members from all sectors and backgrounds
connected by a passion for making a positive
impact. At the UK firm, the Leaders 2050 network
launched the Diversity for Net Zero Report.
•	The Next Generation Council (NGC) is set up
to represent the voice of the next generationof leaders at KPMG and help make meaningful
contributions to and expand our perspective on
key strategic issues like ESG. A number of KPMG
firms have also adopted an NGC to help informtheir priorities and act as sounding boards forsenior leadership.
•	
One Young World’s annual summit empowers
and develops leaders under 30 from aroundthe world in all sectors to marry their desire
for a corporate career with their social andenvironmental activism. KPMG has been involvedin the summits for over a decade with morethan 10 KPMG firms sending delegates, and wehave more than 300 ambassadors across theorganization.

People of KPMG
Safia Mirza
KPMG in Canada
The opportunity KPMG gave me to attend the
One Young World (OYW) Summit, a forum foryoung leaders to confront humanity’s biggest
challenges, transformed my career and theimpact I’ve had through it.
As a sponsor of OYW, KPMG sends delegatesto the Summit each year. When I attended theSummit as a delegate from KPMG in the UK,
I was blown away by how positive andinspirational the event was. Hearing otherpeople my age talk about how they wereembracing their purpose and the impact they
had made me want to do the same.
Prior to the Summit, I had learned to code andcreated a six-week coding course. The course
was designed to give disadvantaged people andthose underrepresented in technology theopportunity to develop programming skills that
employers value.
OYW pushed me to go even further, andI started delivering my course firstly with acharity (The Prince’s Trust) and later at a local
university for women who would not otherwise
have had access to equipment. I also widened
access to the course by live-streaming it — afirst for KPMG in the UK. The course has now
been viewed by more than 17,000 people inover 30 countries and territories.

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And, in January 2023, I helped launch a Code
Ambassadors program in schools in areas of low
mobility. By teaching schoolchildren how to codeand giving them access to KPMG mentors and theskills to train others, I hope to create a ripple effectof learning.
I was also recently given the opportunity to makethe move to KPMG in Canada, where I havecontinued to teach my course and expand thenumber of people I reach.
I’m proud to say that KPMG has not only supportedme, but also enabled me, to achieve what I have.
From support at the highest levels of leadership, to
my manager helping me build my course, I feel
lucky to work somewhere where I’m encouraged
and empowered to turn big ideas into reality.

KPMG: Our Impact Plan

16

People of KPMG
01 Material topics

Marwa Mahmoud
KPMG in the Netherlands

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

When I joined KPMG in the Netherlands asa Climate Risk and Decarbonization
Strategies Manager in September 2022
and told my manager that I wanted toattend the 27th Conference of the Parties(COP27) just two months later, theresponse was, “If you want it to happen,
we will make it happen.”
And so, just weeks into my new role, I was
flying to Egypt to work with a delegation of
future leaders to help make KPMG’scontribution to COP27 a success. At COP,
I was proud to have organized a series of
events in collaboration with the Regional
Center for Renewable Energy and Energy
Efficiency and secured access to the bluezone (the main negotiating zone) for me andtwo of my colleagues. I developed apresentation for a session on just energy
transition where I introduced potential

global strategies to transition to clean energy
and coordinated a session that assessed thecurrent state of the energy crisis, leveraging
insights from recent KPMG thought leadership.
My experience at COP has provided me withunique insights into the interplay between
policy and industry in tackling climate change
and what it takes to help ensure a just transitionof energy. I apply these insights as I help clientsof KPMG in the Netherlands to decarbonize andassess their climate risks. It also gave me theopportunity to build an invaluable network ofclimate change contacts from across the globe.
As a new recruit, I thought that asking to go to
COP27 was a long shot. Instead, I learned that
at KPMG the sky is the limit, and I will besupported in endeavors that can leverage myexpertise to help make a positive difference tothe world around us.

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KPMG: Our Impact Plan

17

Our approach to identifying risks

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

At KPMG, we help inspire confidence in our people,
clients and society, and we recognize how important
it is to identify, manage and plan for risks. Every
KPMG firm is required to identify and manage its
risks through a formal risk assessment process forwhich each firm’s leadership takes responsibility.
At the global level, our GMT is responsible for theEnterprise Risk Management Program, including
ensuring effectiveness of mitigating controls, under
the oversight of the Global Board’s Quality, Risk
Management and Reputation Committee, Executive
Committee and any other committee of the Global
Board designated by the Executive Committee inrespect of a specific risk area.
Our global client and engagement acceptance andcontinuance policies and processes help member
firms identify and evaluate potential risks, ethics orcompliance issues prior to accepting or continuinga client relationship or performing a specificengagement. Member firms are required to consider
a range of factors as part of this evaluation, including
the client or potential client’s risk profile (e.g. its
management and ultimate beneficial owners),
potential independence and conflict of interest
issues (using our conflicts and independence
checking system), intended purpose and useof engagement deliverables, public perception,
and whether the services would be unethical orinconsistent with our Values, as well as factors
specific to the type of engagement. Where client or
engagement acceptance or continuance decisions
pose significant risks, additional approvals are
required. Read more in our Global Transparency
Report 2022.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

18

Client confidentiality, information
security and data privacy

03 People

The importance of maintaining client confidentiality
is emphasized through a variety of mechanisms,
including our Global Code of Conduct. We
have policies that address information security,
confidentiality and data privacy. Member firms
also provide their personnel with annual training
on confidentiality, information protection and data
privacy requirements.

04 Planet

Speaking up safely

01 Material topics

02 Governance

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

People of KPMG
Tamara Lajara
KPMG in the UK
I’m one of KPMG in the UK’s Ethics
Champions.

KPMG has a detailed approach for monitoring andreporting any illegal or unethical acts. Our Global
Code of Conduct and policies and procedures set out
a clear process for anyone seeking advice or wanting
to report illegal or unethical behavior, and we openly
encourage a culture of speaking up without any fearof reprisal. We prohibit retaliatory behavior when ourpeople report ethical issues, breaches or suspected
breaches in good faith.

Ethics Champions are a network of trusted
colleagues at the UK firm who are trained
about and will listen to concerns raised
about unethical working practices orsituations in which colleagues aren’t living
our Values. We do this role alongside ourday jobs and this network exists alongside
our other speak-up reporting channels. Any
reports we take are escalated to colleagues
who will look into the matter and decide on
appropriate steps to be taken.

KPMG firms are required to establish, communicate
and maintain clearly defined channels to allow KPMG
people and third parties to make inquiries about, raise
concerns in relation to, provide feedback on, andnotify of reportable matters without fear of reprisal, in
accordance with applicable laws and regulations.

Ethics isn’t always clear-cut, and it can bedifficult to work out what the right course ofaction is on your own. So my job as an
Ethics Champion is to listen to colleagues —in a safe space and without judgment —and help them to get the support they need.

Supporting our speak-up culture, KPMG International
has a hotline which is a mechanism for our people,
KPMG firms’ clients and other third parties toconfidentially report concerns they have relating
to any activity by KPMG International, KPMG
firms or KPMG people. This is in addition to othermechanisms that may exist within KPMG firms.

As an Ethics Champion, I wear a differently
colored lanyard so I can be easily identified
by my colleagues in the office.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Our network is made up of colleagues atmanager grades who work in different parts of
the UK firm so you can always find someone you
are comfortable speaking with.
Becoming an Ethics Champion gave me firsthand insight into the importance KPMG places
on walking the talk when it comes to its
commitments and Values. From the regulartraining I’m receiving, through to the support andflexibility I get from leadership to do this role,
acting ethically is at the heart of what KPMG is.

KPMG: Our Impact Plan

19

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Focusing on audit and assurance quality

Leading a responsible tax practice

Our commitment: Lead the profession in audit
quality

Our commitment: Drive a responsible tax
practice

Quality and integrity are the foundations thatstrengthen trust in the companies and stakeholders
we serve. Audit quality is fundamental and is a key
measure on which our professional reputation stands.
We’re committed to ensuring our approach to audit
quality evolves as the audit itself continues to bereshaped with new technologies and methods that cancreate a better experience for clients and our teams.
Across our global organization, we’ve strengthened
the consistency and robustness of our system of
quality management that enables compliance with
the International Standard on Quality Management(ISQM 1), issued by the International Auditing andAssurance Standards Board (IAASB), which tookeffect on 15 December 2022. We consider this to bea transformational and fundamental change for KPMG
firms. Find out more about our relentless focus on
quality in our Global Transparency Report 2022.
Our role in ESG assurance: KPMG is committed
to fulfilling our public interest role in providing
robust assurance that can benefit investors andother stakeholders. We believe the same level ofprofessionalism, quality, consistency and trust should
apply to ESG disclosures as to financial data. That’s
why KPMG firms are making significant investmentsin putting ESG at the heart of the organization. During2022, as part of our commitments to meeting boththe public interest and market demands, a Global
Head of ESG Assurance was appointed, an online
sustainability reporting resource center was launchedand guidance was provided on the financial reporting
impacts of climate change.

Our Tax services aim to deliver targeted approaches
that help tax leaders embrace their role in ESG. This is
made possible through resources like our tax impact
reporting methodology to help clients assess their
existing tax governance, access relevant tax data andprepare transparency reports. In FY22, we revised our
Global Principles for a Responsible Tax Practice — animportant part of our ethical framework — to provide
greater simplicity and readability without changing
their essential nature.
Our FY22 tax initiatives included the following:• Building trust with revenue authorities: In
September 2022, the Organisation for Economic
Co-operation and Development (OECD) released
a report (Tax Morale II: Building Trust between
Tax Administrations and Large Businesses)
based on a series of global roundtables, in which
KPMG was involved, and a survey of global
revenue authorities. The report indicated there
was room to improve the relationship between
business and revenue authorities. KPMG isdeveloping a program to discuss what practicalmeasures can be taken to build trust on taxation
matters.
• Tax transparency: There will be increased focus
on transparency, with voluntary reporting throughthe GRI standards and mandatory public countryby-country reporting being introduced in theEuropean Union (EU) and Australia.

changes in taxation in decades. This initiative,
which started with the OECD and Group of
20 (G20), now includes more than 130 countries
and territories. We’ve provided support to a large
number of companies globally in relation to thetax rules surrounding this initiative, including datacollection, accounting disclosures and how tomeet future compliance obligations.
•	
Taxation and carbon: We’ve issued a number ofpublications on the role of taxation in the energy
transition and have held roundtables and a debate
to discuss different forms of carbon taxation,
including taxes, trading programs and hybridarrangements.
Crypto assets reporting: There’s considerable•	
uncertainty surrounding the treatment of crypto
assets. The OECD has agreed on a frameworkfor participants to provide information to revenue
authorities, and KPMG has made submissions to
the OECD concerning the shape of these rules, aswell as assisting clients to help ensure they meettheir taxation requirements.
We believe it’s imperative that we use our voice inthe market to provide multinational organizations
with a global view on the tax implications for theirbusinesses — and the impact their choices haveon society. We’re committed to acting lawfully
and with integrity, providing high-quality advice
and building mutually trusting relations with tax
authorities. This is consistent with our Values andGlobal Code of Conduct.
Read our full Principles for a Responsible
Tax Practice.

•	
Global minimum tax: The introduction of a
global minimum tax is one of the most significant© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

20

Driving purposeful transformations

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Technology continues to evolve, shape andtransform how businesses function and peopleinteract. We’re working with organizations to shape
this change and transform purposefully, helping
them to create lasting value and responsible growththrough new technology and business models.
Our Advisory professionals work with leadingorganizations to help create and protect thesustainable value of their business. For instance,
we’re looking at the opportunities to help clientsnavigate corporate sustainability reporting
requirements and climate-related disclosures.
Our capabilities are powered by a suite of digitaland business transformation solutions that provide
clients with the resources they need to help
optimize risk, automate compliance and support
the identification of opportunities driven by a rapidly
evolving landscape and regulatory change. We’ve
brought together insights, tools and methodologies
that provide detailed paths to agility and businessresilience. We call this digital transformation
Connected. Powered. Trusted.
We’re committed to ensuring that ESG is thewatermark that runs through our business, providing
enhanced approaches and services for clients.
• Our newly launched Climate Change andDecarbonization Center plays a critical role incoordinating our efforts with professionals across
KPMG firms on a range of topics, including
energy transition, built environment, climate
policy, climate risk, carbon markets and more.

• We’re leveraging technology and helping
clients assess their climate risks under a rangeof scenarios with KPMG Climate IQ, a multiindustry risk management tool that enables
companies to identify, quantify and manage
their physical and transition risks due to climatechange. The tool was launched at the end of
FY21 and scaled and evolved through FY22.
We continue to embed ESG in our tools and services
and into our work with clients and will continue thisjourney in FY23 across three pillars of opportunity:transformation, reporting and assurance.

We’re committed toensuring that ESG is thewatermark that runs throughour business, providing
enhanced approaches andservices for clients.

ESG transformation

ESG reporting

ESG assurance

Advising on ESG strategy,transition and implementation,
including specialist areas likeclimate change and human rights.
Transformative ESG initiatives areplanned on a multi-year roadmap
and may include climate risk,
decarbonization, circular economy,
biodiversity, workforce, IDE orgreen corporate governance.

Helping clients to understandtheir ESG readiness andprepare for ESG reporting. Ourfunctional and operative
support includes assisting witheffective reporting (e.g.
workshops, materiality
assessments, benchmarking,compliance reviews, etc.),
standards alignment, data
quality and climate accounting.

Providing external assurance on ESG
reporting by businesses. We’ve taken
a number of steps to help ensure our
ESG Assurance service delivery is
subject to the same level of rigor andquality control as our Audit practice.
Our functional support includes
KPMG-led workshops, the KPMG
Ready for Assurance Service and theInternational Standard on Assurance
Engagements (ISAE) 3000 and ISAE
3410 external assurance standards.

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KPMG: Our Impact Plan

21

People of KPMG
01 Material topics

Marc van MeelKPMG in the Netherlands

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

As technology evolves, it’s critical that it’saligned with human values.
We have a responsibility to shape a worldthat is free from invasions of privacy,
discrimination against minority groups, thetarnishing of reputations and breaches ofautonomy. All of this means that thedevelopment of ethical artificial intelligence(AI) has become much more than anice-to-have. It’s a vital part of businessand society.
As part of the “AI in Control team” at
KPMG in the Netherlands, I work withgovernments and businesses to help
integrate ethics into the development anddeployment of their algorithms.

But it’s also important for me to talk to as wide
an audience as possible to help all the
stakeholders in our future world — including
business leaders, technology professionals andthe public who use services and products driven
by AI — understand the issues at play.
KPMG in the Netherlands has given me thesupport and bandwidth to do this. The firm has
supported my commitments publishing, teachingand speaking on the topic of trustworthy andethical AI. Most notably, I was given the timeand flexibility to attend PyData in the
Netherlands, a conference for data science
professionals, as a keynote speaker.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

22

01 Material topics

Acting transparently with integrity
and accountability

02 Governance

03 People

Setting the highest standards of ethicalconduct

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our commitments:• Act lawfully, ethically and in the public
interest• Work against corruption in all its forms,
including extortion and bribery

We’re committed to the highest standards of personal
and professional behavior in everything we do.
The KPMG Global Code of Conduct (the Code)outlines our ethical principles and expectations as
to how all KPMG people treat each other, clientsand the public. It demonstrates how our Purpose
and Values inspire and guide all of our behaviors andactions. It defines what it means to work at and bepart of KPMG, as well as our individual and collective
responsibilities. We regularly review our Code to
make sure it’s a clear reflection of these principles
and expectations. In addition, all of our people are
required to confirm their understanding of, andcompliance with, the Code upon joining KPMG andthereafter on an annual basis.

Consistent with being signatories to the UN Global
Compact, we work against corruption in all of its
forms, including extortion and bribery. The Codeclearly states that we don’t tolerate illegal orunethical behavior within KPMG or from clients,
suppliers or public officials with whom we work.
Bribery and corruption are unethical, even insituations where it might not be considered illegal ina particular jurisdiction.

seriously and our member firms hold our people
accountable for any behavior of this kind. Our member
firms learn from these incidents and have taken
steps to strengthen their controls, policies and ethicalculture, including leveraging technology. We have alsoenhanced our mandatory ethics and integrity training
which all KPMG people complete annually. KPMG
is committed to taking all necessary action aimed atpreventing incidents like this in the future.

All KPMG firms are required to have processes
to assess prospective clients, third parties andsuppliers in relation to bribery and corruption.
Firms must also assess their bribery and corruption
environment annually and establish and maintainprocesses to monitor, manage and control how theirpersonnel and their agents interact with government
entities and government officials so as to ensurecompliance with applicable laws and regulations
and to maintain public trust. Find out more about
our position on bribery and corruption.

Additionally, KPMG firms and professional
accountants are bound by the International Codeof Ethics for Professional Accountants, includingInternational Independence Standards issued by theInternational Ethics Standards Board for Accountants(IESBA). These standards are in alignment with
KPMG’s ethical principles and expectations.

We take seriously any incidents that are inconsistent
with our Values or in breach of the Code. As an
industry we must have the highest standards ofintegrity. In FY22, news emerged of employees ina small number of KPMG firms sharing answers intraining. KPMG takes incidents like this extremely© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Integrity training completion
KPMG firms provide regular mandatory training
to partners and employees on a range of topics,
including the Code and our anti-corruption policies
and procedures. The following table shows thecompletion rate for our We Do What is Right: Integrity
at KPMG course, which covers a range of topics
including the Code, ethical principles, policies
and more.

KPMG: Our Impact Plan

23

Integrity training completion
By region
Americas
01 Material topics

02 Governance

03 People

Notes:

Asia Pacific

EMA

Total

99% 100% 99% 99%
99% 99% 99% 99%
FY22 completion rate

FY21 completion rate

1. Data represents partners and employees who completed the We Do What is Right: Integrity at KPMG training across Reporting
KPMG Firms.
2. Data is based on the training issued and due for completion in the reporting year.
3. The data excludes those who are exempt. Only those on extended leave from their roles are given exemptions from taking thetraining.
4. KPMG people are required to complete anti-corruption training upon being hired and every year after that.
5. We Do What is Right: Integrity at KPMG includes but is not limited to training on our Global Code of Conduct, ethical principles,policies and scenarios.
6. Refer to the “Indexes and explanations” section for further details.

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

24

Human rights
01 Material topics

Respecting human rights
02 GovernanceOur commitment: Respect human rights
03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

KPMG International is committed to respecting
human rights, as outlined in our Business andHuman Rights Statement, which is in line with theUN’s Guiding Principles on Business and Human
Rights and builds on our longstanding support for
the UN Global Compact. This means supporting theprotection of human rights, avoiding being complicit
in human rights abuses (including those involving
business relationships) and helping to eliminate allforms of forced, compulsory and child labor.

Addressing modern slavery risks
Since our last report in 2022, we continued with
our efforts to further embed modern slavery
considerations in our business operations andsupply chains, both at the global and member firmlevel. A number of KPMG firms are also assisting
their clients in assessing and addressing the risks ofmodern slavery in their operations given the demand
for greater transparency on how businesses are
dealing with it.
At the global level, we take a proactive approach toeffectively address and manage these issues:

While the professional services industry is not
typically considered a high-risk sector for laborrelated breaches, we recognize we have an
important role to play in managing potential harmto people through a risk-based approach to humanrights due diligence.

•	We remain focused on our supply chain. We’rereviewing the results of self-assessment surveys
we sent to all suppliers contracted using ourglobal procurement process, which represent a
majority of our third-party suppliers. The purposeof these surveys is to further understand risks inour downstream supply chain and how we might
mitigate and address them.

Ethical behavior is of utmost importance to us,
as reflected in our Business and Human Rights
Statement. Additionally, our Global Code of Conduct
articulates our zero tolerance for behavior that isillegal, unethical or breaches human rights — withinboth our global organization and our suppliers.

•	We’ve revised our supplier code of conduct,
which requires our suppliers who have adopted
it to meet the same standards and practices as
ours in relation to eradicating modern slavery andhuman trafficking. Our supplier code of conduct
also requires our suppliers who have adopted it to© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

provide us with assistance to expose and address
modern slavery risks, including, for example,
responding to due diligence questionnaires
and providing us with information required to
remediate those risks.
•	Members of our senior leadership, ourprocurement professionals, commercial
contracting and procurement lawyers, andother professionals attended a modern slavery
training workshop in order to understand ourefforts in addressing modern slavery and to raiseawareness of key risks.
•	Our KPMG International hotline allows forreporting of concerns regarding modern slavery.
To date, the hotline has not received any
substantiated modern slavery complaints.

Ethical behavior is ofutmost importance to us, as
reflected in our Business andHuman Rights Statement.

KPMG: Our Impact Plan

25

Case study

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Assessing modern slavery risks,
KPMG Australia
Modern slavery is a complex global problem and cannot be dealt with through a set-andforget process. It takes rigor, resources, time and commitment from senior leadershipand throughout an organization.
KPMG Australia is going beyond regulatory requirements to lead the way in its response
to modern slavery and human rights.
The Australian firm has a human rights working group which is chaired by its Chief
Operating Officer/Chief Financial Officer and Chief Risk Officer and works closely witha dedicated Human Rights Manager to implement a comprehensive multi-year modern
slavery response.
KPMG Australia assesses modern slavery risk in all prospective clients and suppliers andengages proactively with high-risk organizations to address issues rather than walk awayfrom them.
It has made a human rights and modern slavery e-learning module available to all staff
and mandatory for people in specific roles. This complements ongoing engagement withrisk, procurement and client-facing teams to help manage modern slavery risks in theirown work.
KPMG Australia has also developed a Modern Slavery Measurement and Evaluation
Framework, which assesses the impact of its efforts every six months, helping to drive
meaningful change.
Collaboration is crucial to making sustained progress in respecting human rights.
Recognizing this, the Australian firm shares lessons from its modern slavery responsewith peers through forums, including the UN Global Compact Network Australia, andworks with other member firms in the Asia Pacific region to apply leading practices andlearnings to their own operations.
Everything the Australian firm does is backed by the expertise of KPMG Banarra, adedicated business and human rights consultancy based in KPMG Australia.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

26

01 Material topics

02 GovernancePeople03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Creating a caring, inclusive, Purpose-led and Values-driven culture for our people.
We’re a people business. When the best people build a careerwith us, we can all thrive: our clients, our colleagues, ourcommunities and our planet. We want the world to think of ourpeople when they think about KPMG.
People’s needs have changed, including their expectations of what work is,where it happens and what it gives them. We have an opportunity to improve
what work is by delivering a more human relationship between KPMG and ourpeople. It’s about understanding our people as individuals and respecting the factthat they care about their work but also their life as a whole.
We developed a new employee value proposition (EVP) — the articulation of thebenefits we offer our people — in line with the emerging new ways of working toreflect what’s unique about the KPMG people experience. We gathered insightsfrom current and prospective KPMG people across countries and territories tounderstand what motivates them and what we can do so they can perform attheir best. This way, we deliver a people experience that helps us attract andretain the best talent.

“Businesses are having to navigate complex tensions
in the new world of work, and we’re no different. We’rethinking hard about the lessons learned over the past
few years and what we want to be known for. We need tohelp ensure our people feel they are being actively heard,
looked after and responded to while enabling them withthe skills they need to develop exciting careers doing
work that matters and thriving as individuals.”© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Nhlamu Dlomu
Global Head of People
KPMG International

KPMG: Our Impact Plan

27

Our commitments
01 Material topics

02 Governance

03 People

Inclusion, diversity andequity (IDE)• Have an inclusive culture built on trust• Foster an educated, empathetic workforce

04 Planet• Advocate for equal opportunity

05 Prosperity

Health and well-being

06 Activating
our ESGcommitments
07 Indexes andexplanations• P rotect the health of our people — both physically and mentally — andenable them to be effective and productive

Continuous learning• Develop a continuous learning culture© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

28

Our refreshed employee value
proposition

01 Material topics

02 GovernanceYour insight can create opportunities for you andcontribute to a better future. Do work that matters,
supported by a community that values difference
and cares about you. Gain learning that’ll last you
a lifetime and be recognized for the impact you
make. Find opportunity everywhere with KPMG.
•

 o work that matters: Every day, in waysD
big and small, you make a meaningful andpositive difference for clients, people and thecommunities we serve. Help create opportunity
in a world of increasing complexity.

•

 ome as you are: Your unique experiences andCperspectives belong here. Both individually andas a team, you will understand and value thedifferences that lead to stronger insights andinnovation.

•

 hrive with us: Build relationships withTcolleagues who take care of each other. You
will have the KPMG community at your side,
providing the support you need to be at yourbest and create opportunities for yourself andothers.

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations••

 earn for a lifetime: Grow your own way inLan environment where learning is continuous.
Feed your curiosity, work with the best on
emerging practices and technologies, and gain
an advantage for life.
 ake your mark: Your aspirations andM
initiative make KPMG better. Wherever you
work, be recognized for the impact you make,the leadership you show and the success you
create with others.

External collaborations• Signatory to Valuable 500• Signatory to Partnership for Global LGBTI Equality• Member of Out Leadership — Business for LGBTQ+ Equality• Signatory for Champions for Change, Catalyst• Signatory to WEF’s Partnering for Racial Justice in Business• Signatory of UN Women’s Empowerment Principles
World Economic Forum (WEF) Good Work Alliance: This year we became a member of the WEF GoodWork Alliance. The alliance’s objectives are to co-create a framework for good work with companies and otherstakeholders; to support the development of relevant metrics; and to promote measurable commitments bycompanies to core good work goals. These objectives are aligned with Our Impact Plan commitments and ourdesire to build a healthy, resilient and equitable future of work.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

29

Inclusion, diversity and equity
01 Material topics

Come as you are
02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

IDE underpins our Values and is vital to our
Purpose. There’s an expectation from our people,
clients and society that we have a robust IDE
agenda — linked to Our Impact Plan and ourstrategy. Improving our EVP to attract and retain
the best talent also aligns with the “S” in our ESG
commitments.
We strive to do what’s right, which means we must
provide all of our people with the environment tohelp them be the best version of themselves —their true selves. What makes us different is whatmakes us stronger.
How we define IDE:
• Inclusion is about belonging: We commit tocreating a safe environment built on trust, where
we can bring our authentic selves to work andfeel valued for our unique contributions andperspectives.
• Diversity is about difference: We commit
to embracing and respecting the variety of
unique experiences, cultures, identities andperspectives we collectively bring to KPMG.
• Equity is about access to opportunities:
We commit to standing against systemic
barriers and biases. We help level the playing
field and ensure everyone can succeed andthrive at KPMG.

Our commitment: Have an inclusive culture built
on trust
Building a culture that welcomes everyone without
exception takes purposeful work, which KPMG
firms around the globe have focused on in FY22.
We believe we’re on the right path as we focus on
creating communities that empower us to makebetter decisions, innovate and build a culture where
our people can stand up and do what is right.
Leveraging our people’s input, in 2021, we created
our IDE Collective Action Plan. We focused onbuilding a strong foundation that resulted in thecreation of a new Global IDE Center of Excellence,
the release of a global IDE policy, the launch ofstandard global IDE goals and the expansion of ourdata collection, to name a few.

We strive to do what’s right,
which means we must
provide all of our people withthe environment to help
them be the best versionof themselves — their true
selves.

“IDE is core to KPMG: building teams with diverse views that represent the world
we live in plays a key role in unlocking our full potential across member firms. It’s
incredibly encouraging to see IDE principles being reflected across the globe. Given
the trajectory we’re on, I can’t wait to see what we’ve achieved a year from now.”© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Kristine Remedios
Global Head of Inclusion, Diversity & Equity, KPMG International

KPMG: Our Impact Plan

30

Deepening our focus on the communities weserve
Analyzing the current state of disability inclusion
01 Material topics

04 Planet

To support our disability inclusion efforts, we conducted acurrent state analysis of recruitment, retention and advancement
for people living with disabilities in our Reporting KPMG
Firms. Although we’re making progress, the outcome of ourassessment will focus our collective efforts on continuing to
expand our data collection, educating our people on disability
inclusion language and digital accessibility, and working together
with our disability employee resource group leads.

05 Prosperity

Our first LGBTQ+ inclusion statement

02 Governance

03 People

06 Activating
our ESGcommitments
07 Indexes andexplanations

In collaboration with our Global Pride Network, we launched
our first global LGBTQ+ inclusion statement. As a globalorganization, we’re committed to actions that promote LGBTQ+
awareness and making sure our people feel safe, recognizedand heard. A key action from this statement is to support KPMG
firms in appointing Pride Partner Champions to help address
the challenges faced by our LGBTQ+ people. Pride Partner
Champions are KPMG leaders aligned with their Pride Networks
and responsible for championing their firm’s LGBTQ+ inclusion
efforts inside and outside of the workplace.
Taking a stand against racial discrimination
We engaged professionals from around the globe in practicallearning and actions through the International Day for
the Elimination of Racial Discrimination (IDERD) actionsbased initiative, where our people made more than 2,500
commitments to take a stand against racial discrimination.
Topics included the importance of creating psychologically safe
workspaces, challenging microaggressions and colorism.

In collaboration with our Global Pride Network, welaunched our first global LGBTQ+ inclusion statement.
As a global organization, we’re committed to actions
that promote LGBTQ+ awareness and making sure ourpeople feel safe, recognized and heard.

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KPMG: Our Impact Plan

31

People of KPMG
01 Material topics

Jess Wood-Waikari
KPMG in New Zealand

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

I come from the Eastern Tribe of Ng ti
Porou in New Zealand and am Founder ofthe KPMG Kiwa Mentoring Program.
The Kiwa network is a home and family
for M ori and Pasifika colleagues at KPMG
in New Zealand. The name Kiwa comesfrom the M ori name for the Pacific Ocean,
Te Moana-nui-a-Kiwa, which represents
the diversity of nations and cultures theocean brings to the New Zealand firm.
The network helps to drive KPMG in
New Zealand’s aim to have a workforce
that is culturally competent, isrepresentative of the communities it
serves and does meaningful work tofuel the country’s prosperity.
When I joined KPMG in New Zealand as a
graduate, I was very aware of the obstacles
facing M ori and Pasifika applicants. So,with my colleagues, I created a mentoring
program designed to shed light on theapplication process for prospective M ori
and Pasifika applicants, build theirconfidence to apply and — most importantly —build connections between students and staff
to make KPMG feel more like a place M ori andPasifika students could see themselves working
at in the future.
The program not only gives us a positive reason
to come together as Kiwa colleagues, but also
has the greater purpose of giving back to thenext generation of M ori and Pasifika graduatesand growing the support given to talented
young people from M ori and Pasifika
communities as they move into their careers.
The Kiwa Mentoring Program has been runningfor five years, with four of the New Zealandfirm’s national offices working alongside local
universities and tertiary providers. It has
graduated around 250 students, and I feelhonored that just under 50 of those have joined
KPMG in New Zealand as graduates and/orinterns. I can vividly remember the first time mymentee was offered a job at KPMG, and I am soproud and excited every time a mentee joins our
Kiwa family.

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KPMG: Our Impact Plan

32

Case study

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Bringing value through diversity,
KPMG in Japan
KPMG AZSA Officemate Ltd. (AZOM) is a subsidiary of KPMG in Japanand employs over 100 people (members), mainly with intellectual
disabilities.
In Japan, a company that employs 43.5 people or more is legally required
to ensure that 2.3 percent of its permanent workforce are people
with disabilities. As a knowledge-based business driven by KPMG’s
Values, KPMG in Japan wanted to create jobs specifically designed forpeople with intellectual disabilities who may not otherwise have had an
opportunity to work in a knowledge industry. It also wanted to foster adiverse environment to support its growth.
AZOM members support the smooth running of KPMG in Japan in anenvironment that is suited to — and supports — their individual abilities.
Members are engaged in administrative tasks that contribute to theefficiency of the Japanese firm, including helping set up for meetings,
logging event feedback and graphing results, printing, binding, filingand shipping. Many AZOM staff members are also stationed at various
divisions at KPMG in Japan, including its Audit and Advisory practices.
Over time, the range of this work has expanded and diversified.
AZOM members are assigned a job coach who helps ensure they are
comfortable in the workplace and make the most of their abilities at work.
Upon joining AZOM, some members are also teamed up with a seniorstaff member who explains the work and is a ready-made point of contact
for questions or concerns.
As AZOM grows, it will strive to continue to give its members a workplace
where they feel valued, can develop and can gain social independence
through employment.

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KPMG: Our Impact Plan

33

Driving accountability

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Established in FY21, the aim of our inauguralglobal IDE policy is to ensure we have aconsistent method for IDE across our globalorganization by setting baseline requirements.
To drive accountability in all KPMG member firms
and measure how we are effecting change, we’re
tracking progress against policy milestones.
One of these core requirements is for all KPMG
firms to appoint an IDE lead. In FY22, all Reporting
KPMG Firms appointed an IDE lead, which wascritical to driving change.
In addition, we developed a set of dedicatedglobal IDE goals to help all of our people
understand expectations, build their skills andembrace actionable commitments as they
progress through their careers at KPMG. This
year, we’ve seen an uptake from the majorityof Reporting KPMG Firms. Our people areembracing these goals, including them in theirgoal setting and engaging in activities that
support their progress.

We’ve grown our IDE community globally,
focusing our attention on supporting theseroles and creating a community of IDE leads
who come together, share leading practices
and provide input on key IDE initiatives basedon local country context.

People of KPMG
Patricia Molino
KPMG in Brazil
As the co-chair of the newly created global
chapter of the KPMG Network of Women(KNOW), I’m proud to be helping KPMG
achieve its intention to have women in
one-third of leadership roles by 2025.
KNOW is responsible for delivering a widearray of women’s programs and activities
that support the advancement of KPMG
women and help create a more compelling
work environment. KNOW was founded tocreate communities of like-minded women(and men), enabling them to connect
internally and externally with peers andcolleagues, meet mentors and share career
experiences. KPMG firms around the world
lead their own chapters, and I led the
KNOW chapter in Brazil from 2016 to 2021.
I’ve been at KPMG in Brazil for more than
25 years and was one of its first woman
partners. One of the many reasons I’ve

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stayed at KPMG for so long is because of theopportunities I’ve had to shape a rewarding andpurpose-led career.
As the co-chair of the global chapter of KNOW,
I’m able to create opportunities for other womenin KPMG firms across the world and help ensure
women can succeed at the leadership level.

KPMG: Our Impact Plan

34

Advocate for equal opportunity
Our commitment: Advocate for equal opportunity
01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Globally, we set an intention to have women in
33 percent of leadership roles by 2025, which includes
member firm partners and directors. This will help drive
our commitment to advancing gender equality acrossall KPMG member firms. This intention was driven
from the bottom up based on the local aspirations set
by our Reporting KPMG Firms through to 2025. Asof the end of FY22, the representation of women in
leadership across our KPMG firms sits at 27.4 percent,up 0.8 percentage points from FY21.
As we close in on 2025, we know there’s still work
to be done to close the gap. We’ve set ourselves aseries of milestones moving forward to continue
to support all of our member firms to attract, retain
and advance diverse talent in order to accelerate
progress and achieve our collective goal by 2025.
To support KPMG firms in reaching our 33 percent
goal, we’ve developed a process to track yearover-year progress, produced a guide to drive more
impactful, inclusive and equitable practices in ourtalent processes, and renewed our focus on the
KPMG Network of Women.
Another area of our focus moving forward is developinga recommended global approach to conducting
analyses of pay by gender, based on leading practices,by level and grade accounting for factors that include
performance, skills, geography, experience and lengthof service with the organization — to help increase ourtransparency, establish a baseline approach and inform
recommendations to close identified pay gaps.

Gender by level, FY22 vs. FY21
Leadership (partners and directors)
FY22
27.4%
72.6%

FY21
26.6%
73.4%

Total partners and employees
FY22
48.5%
51.5%

FY21
48.4%
51.6%

Women

Men

We’ve seen a number of member firms being
recognized for their work. For example, KPMG
in Canada was named one of Canada’s Best
Diversity Employers; KPMG in Japan ranked Goldin the 2022 PRIDE Index in recognition of theirinitiatives in support of LGBTQ+ colleagues; andKPMG in Malaysia was named UN Women 2022
Malaysia WEPs Awards runner up in the Gender
Inclusive Workplace category.

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50:50
Our Global Management Team is made up of
50% women, as of 1 October 2022. Thesesenior leaders are responsible for developing ourglobal strategy with the Executive Committeeof the Global Board and driving alignment across
our KPMG firms.

KPMG: Our Impact Plan

35

Creating safe spaces
Our commitment: Foster an educated,
empathetic workforce
01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our global learning programs focus on building
allyship, listening to the voices of our people andeducating ourselves on the perspectives and life
experiences of others, with the aim of creating anenvironment in which all of our people can bring
their best and most authentic selves to work.
In FY22, we continued to leverage technology tobring our people together to support one anotherwith digital on-demand training, dedicated global
learning summits and campaigns in recognitionof International Day for the Elimination of Racial
Discrimination, International Day of Persons with
Disabilities, International Women’s Day and Pride
Month.
•	Our people from more than 45 countries or
territories have taken IDE e-learning courses
from global inclusion experts Culture Wizard — amore than 60 percent year-over-year increase inparticipation.
•	We created an allyship guide to provide ourpeople with the tools to help them be better
allies to foster a more supportive workplace.

KPMG colleagues from 90 countries
participated in our FY22 global learning summits.
Year over year, there was also a 14% increasein global attendance and 9% leadership
attendance at these summits.

People of KPMG
Asma Hasan
KPMG in Canada

If someone asked me a few years ago if I
wanted to be a partner, I would havequietly smiled and shaken my head. I
would think to myself, “Me? A partner?
I’m a woman of color, a proud Muslim
who wears the hijab (head covering) and amother to a little girl with autism.”
In my mind, I had the odds stacked up
against me and simply didn’t believe
people like me could become partners. It
was something I didn’t dare dream of, letalone aspire to. Over the years, I had built
up so many barriers in my mind, but
thanks to the support of some amazingcolleagues at KPMG in Canada whoreminded me to believe in myself, I wasable to move past them.
I was given the time and space toprogress at my speed and forge a careerthat worked for me and my family while
receiving the encouragement to take thenext step when I was ready.
And now that I’m in this position, I’m
passionate about helping others to break
down their own barriers.

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I co-chair the Salam Network, a group thatconnects the Muslim community at KPMG in
Canada with each other, clients and the wider
community. I co-founded the Special Family andFriends Network, which helps to ensure a
supportive working environment for mycolleagues who are parents and family
members of children who are neurodivergent,and their friends and allies. And I mentor young
professional women both at KPMG and beyond.
I’m gratified to say that I’m a partner at KPMG in
Canada, where inclusive culture is in our DNA.

KPMG: Our Impact Plan

36

Measuring our impact

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

IDE Index

We measure progress consistently to help ensure we stay on the rightpath. We work together with KPMG firms to continue to expand ourcollection of global IDE data. In line with the objectives set for our IDE
ambition, we’ve created an IDE Index to help us measure the impactof our work from quantitative and qualitative perspectives.

What we will measure
to track progress

We’re pleased to see the FY22 results of our first IDE Index, whichshows favorable overall IDE scores in each area. We look forward tobuilding on this progress, which includes building additional metrics tomeasure the impact of the work we do.

01

We also developed a global set of custom demographic questions
for KPMG firms to use in our annual engagement survey to enable
them to understand the lived experiences and perceptions of different
diversity groupings. This has led to more than 30 additional countries
and territories having the ability to look at engagement from a diversity
lens, including 60 percent of Reporting KPMG Firms.

02

03

An advocate for
equal opportunity

Inclusive culture
built on trust

An educated,
empathetic workplace

Measured by
feedback fromour people

Measured byparticipation andfeedback from ourpeople in our Global
IDE learning summits

Measured byrepresentation,
hiring, retention andadvancement fromour global IDE data

92% of summit

Representation of
women in overall
headcount in 2022
has increased to

80% ofrespondents in our
Global People
Survey have an
overall favorable
view of IDE in ourorganization, up
2 percentage
points from FY21

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attendees surveyed
said they felt moreeducated on the lived
experiences of ourpeople after
attending

48.5%

KPMG: Our Impact Plan

37

Each member firm that set ethnicity
goals has reported positive progressin their reports:
01 Material topics

KPMG in the UK

has committed to having
02 Governance

20%

03 People

of its partners represented by people from an
ethnic minority by 2030.

04 Planet

KPMG in the US
has an aspiration of

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

50%

partner and managing director representationfrom underrepresented groups, including
doubling Black representation, by 2025.

KPMG in Canada
committed to26%

of its partners being represented by peopleof color by 2025.

KPMG Australia
has committed to20%

of its partners being culturally diverse by 2025.

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KPMG: Our Impact Plan

38

KPMG continues to be committed to building an inclusive culture. We’re working with KPMG firms to set targets that will drive our commitment to advancing IDE acrossthe global organization — and it all starts with measuring and reporting on our progress.

Total headcount
01 Material topics

02 Governance

03 People

04 Planet

265,646
48.5%
143

Asia Pacific

56,386

Women

54%

Total member
firms

women

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Americas66,892

49%
women

EMA

142,368

46%

women

*We recognize that gender is a spectrum. KPMG is committed to inclusivity and better monitoring of gender identity beyond binary definitions going forward.
Headcount reported above based on partners and staff employed as at 30 September 2022. EMA=Europe, Middle East and Africa, including India.

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KPMG: Our Impact Plan

39

KPMG firms’ gender headcount by level and region

FY22
01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

FY21

FY20

Gender by level

Total

Women

Men

Total

Women

Men

Total

Women

Men

Partners

12,321

22.2%

77.8%

11,455

21.2%

78.8%

11,115

20.8%

79.2%

Directors

10,781

33.4%

66.6%

9,842

32.9%

67.1%

9,213

31.6%

68.4%

Leadership

23,102

27.4%

72.6%

21,297

26.6%

73.4%

20,328

25.7%

74.3%

Senior managers

26,250

40.6%

59.4%

23,540

40.5%

59.5%

22,177

39.5%

60.5%

Managers

35,665

45.6%

54.4%

32,181

44.9%

55.1%

30,557

44.7%

55.3%

Management

61,915

43.5%

56.5%

55,721

43.1%

56.9%

52,734

42.5%

57.5%

Senior associates

63,578

50.1%

49.9%

58,894

49.4%

50.6%

57,545

48.8%

51.2%

Associates

117,051

54.5%

45.5%

100,345

55.4%

44.6%

92,023

55.3%

44.7%

Team members

180,629

52.9%

47.1%

159,239

53.2%

46.8%

149,568

52.8%

47.2%

Total partners
and employees

265,646

48.5%

51.5%

236,257

48.4%

51.6%

222,630

47.9%

52.1%

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KPMG: Our Impact Plan

40

KPMG firms’ gender headcount by level and region (cont’d)

01 Material topics

02 Governance

FY22

FY21

FY20

Gender by region

Total

Women

Men

Total

Women

Men

Total

Women

Men

Americas66,892

48.6%

51.4%

59,325

48.1%

51.9%

55,979

47.7%

52.3%

Asia Pacific

56,386

54.4%

45.6%

50,449

53.5%

46.5%

46,950

52.4%

47.6%

EMA

142,368

46.1%

53.9%

126,483

46.5%

53.5%

119,701

46.2%

53.8%

Total partners
and employees

265,646

48.5%

51.5%

236,257

48.4%

51.6%

222,630

47.9%

52.1%

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Notes:
1. Total member firm partner and employee headcount based on KPMG people employed as of 30 September, excluding contingent labor.
2. KPMG member firms’ local grade and level structures are mapped to the corresponding KPMG International grade or level.
3.	K PMG recognizes that gender is a spectrum, and we’re committed to inclusivity and better monitoring of gender identity beyond binary definitions going forward. The headcount data presented is based on what is currently
available and is a mix of sex and gender identity.
4. Refer to the “Indexes and explanations” section for further details.
5. In FY22, the average full-time equivalent (FTE) total partners and employees was 255,738 (FY21 — 230,477).

In addition to partners and employees, KPMG firms also have a contingent labor force. In FY22, the contingent labor force was 28,942 (FY21 — 27,619;
FY20 — 21,737), bringing the total workforce to 294,588 (FY21 — 263,876; FY20 — 244,367).

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KPMG: Our Impact Plan

41

KPMG firms’ promotion by gender

FY22
01 Material topics

02 Governance

03 People

04 Planet

FY21

Partner promotions

Total

Women

Men

Total

Women

Men

Americas

326

32.2%

67.8%

310

29.7%

70.3%

Asia Pacific

317

26.2%

73.8%

218

34.7%

65.3%

EMA

617

28.0%

72.0%

299

27.8%

72.2%

Total

1,260

28.7%

71.3%

827

30.3%

69.7%

Total

Women

Men

05 Prosperity
06 Activating
our ESGcommitments

Director promotions

1,783

37.0%

63.0%

07 Indexes andexplanations

Senior manager
promotions

4,553

41.4%

58.6%

Manager promotions

8,015

45.9%

54.1%

Notes:
1. Data represents promotions across Reporting KPMG Firms.
2. Data is based on the announcements in the financial year and therefore includes promotions effective on 1 October of the following financial
year.
3.	K PMG recognizes that gender is a spectrum, and we’re committed to inclusivity and better monitoring of gender identity beyond binary
definitions going forward. The headcount data presented is based on what is currently available and is a mix of sex and gender identity.
4. The director, senior manager and manager promotion data collection is new data that was collected for the first time in FY22.
5. In FY20 there were 490 partner promotions: 27.1 percent women and 72.9 percent men.
6. Refer to the “Indexes and explanations” section for further details.

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KPMG: Our Impact Plan

42

Ratio of minimum wage to graduate-entry wage
Across Reporting KPMG Firms, where the country or territory has set a minimum wage, the ratio of average graduate entry-level salary compared to the country
minimum wage for FY22 ranged from 1.3 to 3.2 times the minimum wage (for FY21, it ranged from 1.3 to 3.1). The range across member firms is mainly driven by regionalvariations and the difference in ratio between men and women is minimal.
01 Material topics

02 Governance

Generational split of active headcount by level

FY2203 People

FY21

FY20

04 Planet

Age range

<25

25–35

34–45

45–55

55+

<25

25–35

34–45

45–55

55+

<25

25–35

34–45

45–55

55+

05 Prosperity

Leadership

–

3%

39%

42%

16%

–

3%

40%

42%

15%

–

3%

40%

42%

15%

06 Activating
our ESGcommitments

Management

–

40%

39%

15%

6%

–

40%

39%

15%

6%

–

41%

39%

14%

6%

07 Indexes andexplanations

Team members

26%

59%

9%

4%

2%

25%

60%

9%

4%

2%

23%

61%

10%

4%

2%

Total partners 18%
and employees

49%

19%

10%

4%

17%

50%

19%

10%

4%

15%

51%

20%

10%

4%

Notes:
1. Total member firm partner and employee headcount based on KPMG people employed as of 30 September, excluding contingent labor.
2. KPMG firms’ local grade and level structures are mapped to the corresponding KPMG International grade or level.
3. Refer to the “Indexes and explanations” section for further details.

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KPMG: Our Impact Plan

43

01 Material topics

Health andwell-being

02 GovernanceThrive with us
03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our commitment: Protect the health of ourpeople — both physically and mentally — andenable them to be effective and productive
Everyone deserves strong and accessible support,
and we put our people’s physical and mental healthfirst. We commit to protecting the health of ourpeople, enabling them to be effective, productive
and to thrive with us. We believe when we’re at ourbest, our best work happens, and that’s why wecreate opportunities that can help each of us achieve
physical and mental health on our own terms.
In FY22, we reopened our offices and leveraged our
digital transformation and learnings from the past
two years to develop new work practices that alignwith our people’s desire for flexibility. All our largest
member firms have adopted working models thatprovide flexibility between the office, client sites andhome, with a focus on using time in each location in apurposeful way.
Feedback on the approach has been positive, with
84 percent of respondents in our 2022 Global People
Survey having a favorable response to the question:“I can work where I am most effective to meetclient, business and team needs.” We continue tolisten closely to people across our organization as we
experiment and learn. While flexibility can enhancewell-being, it can also bring challenges in maintaining ahealthy work-home balance, so we’ve provided training
and support to help managers and their teams navigate
these new ways of working.
Managing workload and creating sustainable work
practices is a challenge that can impact well-being. We
carried out a global review of workload, initially focusing
on our Audit teams, identifying actions that could help
create a long-term, sustainable people experiencethat supports well-being outcomes. We’ve launcheda global framework centered around five themes —portfolio management, increasing capacity, processoptimization, enabling culture and vision of the future —and are working with KPMG firms to activate this. We’recommitted to implementing the recommendations
across the organization.

In the past year, we increasingly focused on ensuring
our people have time away from work to recharge,
including providing opportunities for breaks throughoffice closures or abridged working weeks. For example,
KPMG in Canada gave Fridays off to all of its employees
throughout July and August 2022, and KPMG Australia
had a two-week summer office shutdown in late
December.
Looking at ways to create a work environment that
supports each individual’s well-being and promotesa healthy workforce will continue to be a priority.
In a coordinated effort to have research-backed
evidence, KPMG International and KPMG in the UK arecollaborating with the University of Cambridge to identify
ways to improve mental
well-being at work.

Case study

University of Cambridge collaboration,
KPMG International and KPMG in the UK
KPMG International and KPMG in the UK joined forces with the University of Cambridge to undertake
research focused on understanding ways to improve mental well-being at work.
Using KPMG as a case study, the program will first look to discover how to correctly measure mental
well-being, what works from an intervention perspective and understand the interrelations among mental
well-being, productivity and the workplace. The program’s aim is to develop the foundations needed torewire businesses and create environments that are conducive to promoting mental well-being as a firstprinciple.
We will use the research to look at how variations in working scenarios — including across businesstypes, locations and types of interactions in the workplace — can impact the mental health of a workforce
and develop effective interventions that can be deployed to better promote and protect the mental healthof workforces in the future. Trial and test interventions will be set up before opening up the findings to
help make a difference, including to other businesses and policymakers.

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KPMG: Our Impact Plan

44

Case study

Embedding well-being into workplace design,
KPMG in Singapore

01 Material topics

KPMG in Singapore recently moved to a new office location, embedding the well-being of ourpeople and new ways of working into its design.

02 Governance

It was an opportunity to reimagine what work can — and should — look like, both now and in the
future. Our ambition was to design a workplace for the evolving needs of colleagues, clients andcommunities.

03 People

04 Planet

05 Prosperity

The new office was co-created with our people to support their preferred ways of working. It was
designed to support hybrid working, be sustainable, flexible and resilient, drive greater learning andcollaboration, and — most importantly — enhance well-being while at work.

06 Activating
our ESGcommitments

The fit-for-future design came to life through a deliberate process to listen to the needs of ourpeople, bringing them in at critical stages. We held surveys and focus groups before design orconstruction even began.
One of the key things we heard was the need for the move to be sustainable, and we’ve made thatcommitment by moving to a LEED Platinum building, among other carbon-friendly initiatives. For
example, we launched a reduce, reuse, recycle program, including gifting previous office furniture to
local charity groups.

07 Indexes andexplanations

When paired with meaningful hybrid work policies, the workplace helps facilitate adaptable, fit-forpurpose interactions — whether online or in person — for a sustainable future of work. The central
clubhouse can easily convert from an event space for clients to a dedicated space for employee
events or networking. As we grapple with ever-changing ways of working, social interaction andconnection is something we all need.
KPMG in Singapore’s new LEED Platinum building(the highest certification level in the green
building rating system)

KPMG in Singapore created a space intended to help everyone feel safe and able to be their best
selves, while providing flexibility to personally own what new ways of working mean for bothindividuals and teams.

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KPMG: Our Impact Plan

45

Learning and development
01 Material topics

Learn for a lifetime
02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our commitment: Develop a continuous learning
cultureLearning and development (L&D) is embedded in our
Values, our brand and Our Impact Plan commitments.
It equips our teams with the technical know-how,skills and ethical behaviors to best serve our clients,
our colleagues and our communities. Member firms
have invested significantly in continuous learning,
including an average spend of US$1,049 and 63 hoursof formal learning per employee in FY22, up from
51 hours in FY21.
At a global, regional and member-firm level, we’reevolving L&D to deliver a continuous learning culture
through learning in the flow of work. We’re also
pivoting from the narrow remit of L&D that tended tofocus on formal training courses.
Our new learning approach adopts an enabling,value-adding definition of L&D that extends beyond
the classroom to include on-the-job and just-in-time
solutions, supported by a manager, mentor or coach.
This encompasses learning in its broadest sense,
growing our people’s capabilities, helping to skill andreskill with speed and agility, and ultimately allowing
them to better respond to the complex realities oftoday’s world.

The investments we made helped us to increase ourannual hours of formal learning per employee over theprior year. Looking ahead, we’ll move away from only
measuring L&D success using investment figures,
which don’t necessarily provide an accurate view ofthe effectiveness of learning solutions; instead, we’llgather actionable, qualitative data on the benefits oflearning solutions, as reported by learners and theirperformance managers.

84%

of our people agree
they have “learning
opportunities that help
[them] develop skills to
succeed in the future”
4%from 2021

85%

of our people agree
those they work for“do a good job sharing
their knowledge andexperience”
2%from 2021

Our learning technology•	Our chosen global learning experience platform —Degreed — has been deployed in more than 90
countries or territories to date. Through Degreed,
our people can easily access on-demand andtailored learning. Learners have access to morethan 20 external content providers to help themtarget their individual interests.
•	Another pivotal technology is Kaltura, which
provides access to live virtual classrooms andvideo hosting for virtual or hybrid learning andfeatures enhanced viewer reporting for ISQM
1 and Continuing Professional Education (CPE)requirements.
•	Looking ahead, we plan to launch a global badge
program, enabling our learners to demonstrate
their growing skillset and expertise internally andexternally.

Source: 2022 KPMG Global People Survey respondents.

Member firms have invested significantly in continuous
learning, including an average spend of US$1,049 and63 hours of formal learning per employee in FY22, up from
51 hours in FY21.

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KPMG: Our Impact Plan

46

Training cost and hours per individual

FY22
01 Material topics

02 Governance

03 People

Per individual

FY21

FY20

US$

Hours

US$

Hours

US$

Hours

1,049

63

1,071

51

1,019

54

Notes:
1. Based on Reporting KPMG Firms.
2. FY22 data doesn’t include data from member firms that exited the network in FY22.

04 Planet

3.	Includes continuous professional education and excludes KPMG International central costs. Professional designation training, such as training to become a certified public or chartered accountant, is excluded.
4. Includes instructor classroom-led training as well as digital and virtual training.
5. Includes training development, licenses, administration and delivery. The opportunity cost of completing training is not included.

05 Prosperity

6. Includes travel and venue costs, including KPMG dedicated training facility location costs.
7. “Per individual” is based on average total partner and employee headcount.

06 Activating
our ESGcommitments
07 Indexes andexplanations

8. Refer to the “Indexes and explanations” section for further details.

Accelerator learning
KPMG core skills
This 4.5-day program is for first-year employees,
equipping them with the skills to help them succeed
from day one. These skills include self-management,
communication, operating high-performing teams,
stakeholder management, problem solving andpresentation skills.
ESG learning
Through collaborations with leading academic
institutions, including the University of Cambridge
Judge Business School and New York University, alongwith internally developed programs, we’ve launchedfoundational ESG learning to all KPMG professionals.
ESG 101 is our foundation-level program that aims togive all of our people a solid understanding of what

ESG is, why it matters, what KPMG is doing about
it and how they can make a positive impact. The
program consists of three modules: an introduction to
ESG for all KPMG professionals; how KPMG is making
an impact both internally and externally, addressing
Our Impact Plan commitments; and how clientfacing KPMG professionals can have ESG-focusedconversations.
Digital and Data Foundations
This multi-year program is aimed at raising KPMG
professionals’ collective digital and data literacy,
providing a strong understanding of the technology
trends and concepts that are reshaping the businessworld.
C75 program

attributes that demonstrate their potential to be
successful in future leadership roles. Participants are
given a series of regional and international experienceswith a focus on global priorities and challenges
through peer-to-peer and collective sessions, alongwith executive coaching and mentoring.
Elevation growth academy
The Global Lead Partner and Global Sector Headroles are some of the most high-profile roles at
KPMG, with a responsibility to help drive businessgrowth. This academy supports and equips theseleaders with insights into what it takes to be truly highperforming in their roles, and we provide them with askills development framework, alumni mentoring andexecutive coaching programs.

This program brings together high-potential partners
who possess the skills, experiences and personal© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan47

01 Material topics

02 Governance

Planet03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Reducing our impact on the environment to build a more sustainable and resilient future.
To help reduce global warming and ensure a fair and just transition, organizations
and governments need to invest more in low- and zero-carbon energy grids — inboth advanced and low-income economies. It’s also important to move awayfrom short-term thinking and ensure that climate strategies are resilient and able towithstand external shocks. This means balancing short-term needs with long-termchange and taking into account major geopolitical and economic events.
KPMG is committed to reaching net-zero carbon emissions by 2030. This requires halving our carbon
emissions by 2030 — while continuing to look at how we address climate change, water pollution,
deforestation and biodiversity loss. We’re implementing sustainable practices within our global organizationand evaluating our supply chain to help ensure a healthy planet for generations to come. What we dointernally mirrors the services we provide to our clients as we work across sectors, helping to ensure
long-term protection from the worst effects of the climate crisis.
Our commitments mirror the policy and science resulting from COP events, the UN Sustainable
Development Goals and the wider international community. We don’t operate in isolation, which is why we
set a science-based target (SBT) and why we’ve developed our approach to nature and biodiversity, climate
risk and circularity in our journey to net zero. Our role as a trusted adviser to our clients, the influence we haveacross our value chain and the impact we have in our wider communities are guided by these frameworks.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

“We’re working together withbusinesses, government andstakeholders to help ensure theworld is able to transition to net
zero in a fair and just way. This will
require collaboration, innovation
and a willingness to invest in the
future of the planet.”
John McCalla-Leacy
Head of Global ESG
KPMG International

KPMG: Our Impact Plan48

Our commitments
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments

Decarbonization• Achieve net-zero carbon emissions by 2030

Climate risk
• G
 ive financial markets, clients and our leaders clear, comprehensive,high-quality information on the impacts of climate change

Nature and biodiversity• Understanding and improving our impact on nature and biodiversity

07 Indexes andexplanations© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

49

Case study

Alliance for a Just Energy Transformation
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

The Alliance for a Just Energy Transformation (AJET) was launched by the United Nations
Development Programme and World Wildlife Fund at COP27 with the support of KPMG. This
voluntary initiative aims to accelerate the implementation of just transition policies around the world
and is designed to accelerate progress toward achieving global net-zero goals while prioritizing thewider social agenda.
As a founding member, KPMG works with other AJET organizations to facilitate conversations that
advance a just energy transformation around the world. Our aim is to use our global network of firms,
clients and external stakeholders to help improve public and private sector collaboration in driving
climate action and ensure that developing and emerging countries and territories are engaged in
critical just energy transition debates.

Case study

Net Zero Urban Program
The Net Zero Urban Program is designed to accelerate the scale and speed at which the world canachieve net zero in urban environments.
The program is dedicated to developing impactful urban decarbonization solutions in critical sectors
such as the built environment, mobility, energy and industry infrastructure, water, and waste. It aims
to reach 10,000 cities, scale up 100 solutions and raise US$25 billion of capital by 2030.
Recognizing that new types of public-private co-investment and blended finance investment will beneeded to fund a transition to net zero, the program bridges the gap between high-level ambitions andpromising initiatives. The program matches game-changing technologies and innovative start-ups or
projects with the right financing to facilitate net-zero breakthroughs.

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KPMG: Our Impact Plan

50

Decarbonization
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments

Before we collated and analyzed our data for FY22, wemade two assumptions:

Our commitment: Achieve net-zero carbon
emissions by 2030
As a global organization and provider of ESG-related
services, we have a responsibility to look at the
impact of our operations and play our part in the global
decarbonization effort. Our focus has been on reducing
emissions and collecting more accurate data to support
this effort and understand where we need to focus ourenergy in the years ahead. Decarbonization is critical to
our collective net-zero efforts, and our goals are alignedwith the 1.5°C Paris Agreement target, with a near-term
SBT to decarbonize our business by 50 percent by 2030,
compared to our FY19 baseline.

07 Indexes andexplanations

1.	Our business travel was likely to increase. While
KPMG International and our network of member
firms are collectively developing and taking a moresustainable approach to travel, our travel emissions in
the previous financial year had decreased significantly
from prior years due to pandemic-related travel
restrictions. As restrictions relaxed around the world,
the need for us to reconnect with our clients andcolleagues would naturally lead to increased businesstravel. While we anticipated an increase comparedto our previous financial year, we still expected thisnumber to be lower than our FY19 baseline.
2.	There was potential for a significant change to our
Scope 3 purchased goods and services emissions

due to a change in methodology. Through the CDP
Supply Chain program, we’ve engaged our largest
suppliers to obtain “allocated emissions” — aproportion of a supplier’s emissions specificallyattributable to KPMG due to the goods and services
we purchase from them. We will look to supplement
this data using factors provided by the CDP, which
they’ve refined from their experience of working indifferent supply chains across many sectors. Though
we now have greater confidence in our data for thiscategory (typically one of the most difficult emissions
areas to measure), we wouldn’t necessarily be able
to make a like-for-like comparison to our data fromprior years. Read more about our supply chain andprocurement approach in the Integrating supply chain
into our commitments section.

Our route to net zero
Decarbonization

Energyefficiency
A core requirement
for any
decarbonization
strategy.

Net zero

TravelRenewables
We’re committed
to sourcing 100%
renewable
electricity acrossthe globalorganization by2030.

Pre-pandemic,
travel accounted
for one-third of
our total carbon
emissions.

Supply chain
More than
50% ofour globalorganization’s
emissions comefrom our supply
chain.

Circularity
Circularity — asystem of productionthat reduces waste
and material use —is an enabler toachieve net zero.

Nature positive
Being nature
positive — enhancing
the planet’s resiliencethrough reversing
nature loss — is anenabler to achieve
net zero.

Carbon removals
As we approach net
zero, investment inexternally verified
carbon removal
solutions will beneeded.

Internal
carbonpriceInternal
carbonprice© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

51

Our carbon greenhouse gas footprint

01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

We had a nine percent emissions reduction from lastyear, and a 25 percent reduction against our FY19
baseline year. We also saw a reduction to 38 tCO2e
per US$1 million revenue (net), from a baseline year
value of 60. Compared to last year’s figures, while
our overall gross emissions have decreased, we’veseen noticeable increases in certain areas, which
can largely be attributed to the gradual relaxing of
pandemic restrictions globally.
With the updated FY21 emissions data, we saw anincrease in Scope 1 emissions in our FY22 figures.
We can attribute part of this to an increase in officebased working, with the most significant increase
due to business travel (which was expected as we
returned to our offices and visited client sites). While

we’ve seen a modest increase in Scope 2 energy
and gross emissions, a larger proportion of electricity
sourced is renewable and highlights progress toward
our ambition to use 100 percent renewable energy
across the global organization by 2030.
The most significant increase (relative to FY21)
was in our Scope 3 business travel emissions(where air travel is captured). While this increased
by approximately 230 percent compared to FY21,
it’s 37 percent of our FY19 baseline and within therange we were hoping to achieve at this stage. These
reductions were made possible in part by improved
management, a climate-focused view on businesstravel and the easing of restrictions partway throughFY22. Overall, our people took a measured approachto business travel, and we’ll continue to monitor

business travel and the impact climate-conscious
travel policies are having on our travel emissions.
Our Scope 3 purchased goods and services
emissions continue to be our most significant sourceof tCO2e, even with the change in accounting
methodology. This new methodology means we’ll
have increased confidence in our data going forward.
Our progress toward a low-carbon supply chain, partof our ESG procurement approach, is not just about
getting better emissions data — it’s about engaging
our suppliers and working with them to help reduce
their emissions. As we continue to work with
suppliers and enhance our value chain data accuracy,
we’ll work toward re-baselining our emissions
with this more robust accounting methodology forpurchased goods and services.

Our operational GHG footprint (unit of measure ktCO2e)
Scope 1

Scope 2 — location-based

50

120

115

42
40

28

30

19

1,677

60

1,500

0

0
FY21

1,321

1,403

FY20

FY21

1,266

500

20

FY20

2,000

40

10

FY19
(base year)

86

89

80

34

20

104

Scope 3FY22

FY19
(base year)

0
FY20

FY21

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FY22

FY19
(base year)

FY22

KPMG: Our Impact Plan

52

Notes:Climate change performance
ktCO2eFY22

01 Material topics

FY21

FY20

FY19
(base year)

02 Governance

03 People

Gross emissions

1,383

1,508

1,459

1,834

By region
640

970

846

995

Asia Pacific

230

207

195

256

05 Prosperity

EMA

513

331

418

583

06 Activating
our ESGcommitments

By category and source
Scope 1

28

19

34

42

Scope 2 — location-based

89

86

104

115

Scope 3 — purchased goods and services

979

1,272

975

986

Scope 3 — business travel (air travel)

157

33

197

465

Scope 3 — business travel (other)

49

30

52

89

Scope 3 — commuting

41

38

60

96

Scope 3 — other

40

30

37

41

07 Indexes andexplanations

Net emissions
Intensity of net emissions

2. The tCO2e per individualis calculated using average
total partner and employee
headcount.
3. The tCO2e per US$1 million
revenue is based on theaggregated global grossrevenues.

Americas04 Planet

1.	Climate change performancedata reflects the data ofapproximately 60 KPMG firms
including the Reporting KPMG
Firms that have been used toestimate total emissions on a
global basis.

1,330

1,446

1,395

1,778

4.	In FY22, the methodology forcalculating Scope 3 purchased
goods and services wasrefined and updated as partof ongoing improvement
to ESG data. The updated
methodology incorporates
allocated emissions fromsuppliers (specific to KPMG)
based on CDP data where it’savailable. The remainder iscalculated on a spend-based
method using sector-based
data emissions factors. FY21,
FY20 and FY19 have not been
represented for this change ofbasis, however, we anticipate
that we will recalculate themin the future when morecomprehensive supplierspecific data is available.
5. Renewable energy has
been recalculated for FY21,
FY20 and FY19 as updated,
more accurate data became
available.
6. Net emissions are grossemissions adjusted forrenewable energy offsets andcertificates.
7. Refer to the “Indexes andexplanations” section forfurther details.

tCO2e per individual

5.35

6.30

6.24

8.23

tCO2e per US$1 million revenue

38

45

48

60

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KPMG: Our Impact Plan

53

Renewable energy
The trend toward sourcing 100 percent renewable energy across our organization by 2030 has continued. All Reporting KPMG Firms reached this goal by theend of FY22.
01 Material topics

02 Governance

Purchased electricity (GWh)

03 People

Renewable energy (GWh)
04 Planet

Renewable energy (%)
05 Prosperity
06 Activating
our ESGcommitments

Energy per FTE (MWh per FTE)

FY22

FY21

FY20

FY19
(base year)

234
184
79%
0.94

236
163
69%
1.03

272
151
56%
1.22

282
140
50%
1.31

Note: Renewable energy has been recalculated for FY21, FY20 and FY19 as updated, more accurate data became available.

07 Indexes andexplanations

Reporting KPMG Firms
reached the target of
100 percent renewableenergy in October 2022 byfinding the best solution
for their respective
regions.
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KPMG: Our Impact Plan

54

Renewable energy

01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

We have a target of sourcing 100 percent renewableelectricity across our organization by 2030. As wecontinue to make progress toward this goal, we’ve hit
an interim — and significant — milestone: Reporting
KPMG Firms reached the target of 100 percent
renewable energy in October 2022 by finding the bestsolution for their respective regions.
In terms of total electricity usage, the levels remained
very similar — demonstrating that despite increased
office usage the efficiency initiatives KPMG firms
have taken have balanced this. Additionally, theproportion of renewable energy across our globalorganization increased from 69 percent in FY21 to79 percent in FY22. The challenge now is to support
the remainder of our member firms in sourcing
renewable energy to achieve our 2030 goal.
Some of our firms are now looking beyond electricity
to help reduce their energy impact. For example,
KPMG in Ireland now sources 100 percent biogas for
its offices as a replacement for natural gas, chosen for
its minimal life cycle emissions as a source of energy,
which reduces the life cycle emissions associatedwith heating the offices.

The challenge now is tosupport the remainder of ourmember firms in sourcing
renewable energy to achieve
our 2030 goal.
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KPMG: Our Impact Plan

55

ESG reporting tool
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Last year, we started to invest in our
approach to ESG reporting and how
we manage our data. To enhance ourown ESG data gathering and reporting
capabilities, initially focusing on the
climate and emissions data, thisinvestment will help drive consistency
across our global organization.
Once implemented, we’ll be able tounderstand and analyze performance
more meaningfully and efficiently,
which can help us make better-informed
decisions to manage our emissions. Thisis a crucial step to help improve how
we manage operations and transition
to net zero and meet our wider ESG
commitments.

People of KPMG
Tomi Adepoju
KPMG in Nigeria

I’m part of a multi-market team at KPMG in
Nigeria working with a leading full-service
commercial bank with operations spanning
sub-Saharan Africa, Europe and Asia tohelp reduce the bank’s greenhouse gas
emissions. The project is one of the first of
its kind for the banking sector in Nigeria.
Our work with the bank helped thebusiness set a baseline for its greenhousegas emissions, benchmark itself against its
peers, set emissions targets and develop
a carbon abatement and offset strategy.
The bank is now tracking, monitoring anddisclosing its progress using frameworks
that my team developed.
Delivering the work with our colleagues at
KPMG in India made our engagement
experience value-driven as we harnessed
their experience while projecting ourunderstanding of the local realities. It’s the© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

ability to tap into the expertise of our global
network of KPMG professionals to collaboratethat makes us stronger.
The entire team is proud of the work we’ve donewith the bank. As Nigeria thrives to balance
economic growth alongside its emissions
targets, my team and I are proud to be playing
our part in helping us get there. Indeed, at
KPMG, we do work that matters.

KPMG: Our Impact Plan

56

Internal carbon price

01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Building on last year’s report, we set an internalcarbon price (ICP) at KPMG International and within
our Reporting KPMG Firms. An ICP helps incentivize
changes in behavior and ensure climate is integrated
into our decision-making process. We set the floor
price (i.e. minimum price) at US$15 per tCO2e. We
encouraged each participating firm to choose a pricethat best suited their decarbonization objectives andlocal market conditions, so ICPs range from US$15
to US$50 per tCO2e across the organization. We
will look to deploy this further in the coming years,
recognizing the price will likely need to increase overtime to help ensure we accurately and appropriatelyreflect the true impact of climate on our business.
The ICP funds raised will be invested at the discretionof our member firms in decarbonization activities they
feel will be most impactful, and we’ve seen a variety
of innovative and exciting ideas — from facilities’
efficiency through to nature-based solutions. We’reconfident the ICP will continue to be a key tool in ourdecarbonization journey.

We encouraged eachparticipating firm to choosea price that best suited theirdecarbonization objectives
and local market conditions.

People of KPMG
Hannah Richardson
KPMG in the UK

As Head of Travel and Venue Services at
KPMG in the UK, I know that travel-related
emissions make up a significant part of theUK firm’s carbon footprint. Central to the
UK firm’s Sustainable Procurement
program is an ambition that KPMG in the
UK is thinking carefully about: finding ways
to limit the impact we have on the planet,
including how we travel for work.
One of the ways we have done this is bylaunching a carbon emissions travel app.
The app was custom built for KPMG in the
UK by the firm and educates individuals on
the emissions their business travel is
responsible for.

ability to make peer-to-peer comparisons. The
idea is to arm colleagues with the insight theyneed to make informed decisions about whenand how they travel.

The app has been designed to relay
information in relatable ways. For
example, it can tell a user that their flight
to New York emitted the same amount ofcarbon as heating an average UK homefor over two years would. It also gives
users travel hints and tips, as well as theDeveloping the app was no easy feat, but it wasmade possible thanks to close collaboration withmy colleagues in corporate responsibility anddata. And, throughout the process, I was given
the full weight of support from my firm’s
leadership team, as well as the confidence thatI’m doing the right thing.

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KPMG: Our Impact Plan

57

Decarbonization challenges

01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

state 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; and catering andhospitality.

Overall, we’re making progress on our decarbonization
journey while we continue to address a number ofchallenges. In general, we’re focused on ensuring
accuracy in our reporting, and we recognize the need tocontinuously update our methodology with new areas
and realities as they become material (e.g. emissions
associated with working from home). While measuring
emissions and improving data is a fundamental partof this, we’ve identified two key decarbonization
challenges:

For each of these themes, we’ve developed aroadmap that outlines the initiatives that could
be taken to move the organization toward a morecircular model — such as offering repaired, recycled
or refurbished IT equipment and sourcing circularfurniture — and implementing strategies to help
optimize material use and lifetime.

1.	
Scope 3 purchased goods and services emissions
continue to be an area we need to measure — andmanage — better. While we’ve made changes
to our supplier engagement approach, and we’re
grateful of the efforts our suppliers are continuing to
make to decarbonize their operations, as previously
stated, a proportion of the year-on-year change isbased on the new accounting methodology. Oneof our critical goals is to decouple emissions from
economic growth, so it’s essential that our rate ofsupply chain decarbonization exceeds our rate of
growth. This won’t be easy, but we’re committed tohelping our member firms and suppliers.
2.	Even though we anticipated this year’s increasein business travel — and at face value, our FY22
emissions are lower compared to our baseline
year — we will be conscious of how the trend
continues. Professional services is a peoplecentered industry, and while there are numerous
benefits of flexible working, we recognize there
are occasions where being in the same room ascolleagues and clients is the best option. We needto manage any further increases to help achieve alevel and balance appropriate for our climate goals
and our client relationships.

As we developed our global approach to circularity,
we also looked at what KPMG firms were doing. For
example, KPMG in the UK committed to becoming
a zero-waste business by 2030 by eliminating all
avoidable wastes, cutting the volume of materials
used within its operations. Numerous KPMG firms
have implemented reuse and recycling schemes for
IT equipment and mobile phones. KPMG China and
KPMG in Canada have implemented “green corners,”
where colleagues can donate quality items they nolonger need and take any items they want (e.g. books,
clothes and toys).

Circularity
In FY22, we developed a circularity strategy androadmap for our operations, including our supply
chain. This involved taking a holistic approach that
focuses on circular procurement, avoiding waste,
optimizing material use and enhancing end-of-life
treatment.
We started the process by identifying the key areas towhich these circular principles can be applied within
the organization, followed by analyzing the current© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Through engagement with member firms, we’reempowering colleagues to understand the conceptof a circular economy and where waste is generated
across our value chain while providing a framework
for implementation and reporting.

A circular economy reduces material use andthe emissions associated with the productionof the materials that traditionally go to waste.

KPMG: Our Impact Plan

58

Climate risk
01 Material topics

Our commitment: Give financial markets, clientsand our leaders clear, comprehensive, highquality information on the impacts of climatechange02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Climate risk refers to how we assess theconsequences, likelihood and responses to theimpacts of climate change and how we, as abusiness, will adapt to meet these challenges. This
includes our whole value chain — from how wework with our suppliers through to the services weprovide our clients.
We continue to report annually to CDP on ourcollective performance and management forclimate-related issues. This year we maintained a
B grade,4 displaying co-ordinated action on climate
issues. To further strengthen our rating, over thelast year we’ve focused on quality assurance, supply
chain engagement and assessing climate risk undera range of scenarios using the KPMG Climate IQ
platform, a multi-industry risk management tool thatenables companies to identify, quantify and manage
their exposure to physical and transition risks due toclimate change.
In FY22, we conducted a Task Force on Climaterelated Financial Disclosures (TCFD)-compliant
scenario analysis to explore our exposure to transition

4

risk across the largest countries and territories
in which KPMG firms operate. The assessment
financially quantified the risks and opportunities
arising from climate change and the low-carbon
transition. The outcomes of this assessment are
being reviewed and integrated into our quality andrisk and other relevant processes. They will form
part of the evaluation of our climate strategy andperformance, which our Global Board reviews
annually. This scenario analysis will form a foundation
for future CDP responses and TCFD reporting.
KPMG plays an active role on the TCFD Board,which includes Simon Weaver, Partner and CoHead of Climate Risk and Strategy at KPMG in the
UK. Through the TCFD, we’re helping drive howorganizations should disclose consistent information
on climate-related financial risk and the potential
impacts, as well as drawing attention to the strategic
benefits of good climate risk management.

Climate risk refers to how we assess the consequences,likelihood and responses to the impacts of climate change andhow we, as a business, will adapt to meet these challenges.

A B-score indicates that a company is showing some evidence of managing its environmental impact but is not undertaking actions that mark it
out as a leader in its field.

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KPMG: Our Impact Plan

59

Nature and biodiversity
01 Material topics

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

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

WEF has estimated that more than half of the world’s
gross domestic product (US$44 trillion5) is moderately
or highly dependent on natural ecosystems and therate of degradation in nature over the past 50 years
is unprecedented. Business activities contributeto direct and indirect drivers of nature loss, which
creates risks — and opportunities — for businessand society.
We have a role to play in the transition toward nature
positivity. Since our last report, we implemented abiodiversity plan as part of our ambition to become anet-zero business. This includes supporting the global
journey toward a nature-positive future through workfor our clients and in our operations. We will continue
to develop our thinking, aligned to leading practices
through initiatives like the Taskforce on Naturerelated Financial Disclosures (TNFD) to help ensure
our approach to business considers the impact anddependencies on nature.
Our biodiversity approach focuses on the office
footprint, employees, external collaborations andsuppliers:•	
O ffice footprint: We’re using the Integrated
Biodiversity Assessment Tool to understandour impact on biodiversity, protected areas,
5threatened species and critical habitats across
KPMG’s global office footprint and to help inform
how we manage our office footprint.
•	Employees: We’re implementing an ESG
employee education initiative — the global
ESG learning curriculum — which incorporates
biodiversity and will align with our nature-positive
position statement.
• External collaborations: KPMG is an active
participant in global biodiversity forums that seek
to advance the understanding of, and action on,
biodiversity. Along with TFND, WEF and GRI, ourexternal collaborations include the Sustainable
Markets Initiative (SMI) and the World BusinessCouncil for Sustainable Development (WBCSD).
We’re a member of the WBCSD Nature Working
Group, and we’ve committed our support to
the GRI’s development of a new biodiversity
standard. We’re a founding partner of the SMI,
which sets out a 2030 roadmap for businesses tomove toward a sustainable future by supporting
the protection and restoration of 30 percent of
biodiversity on land and below water by 2030 and
50 percent by 2050.
•	
Suppliers: We plan to work with our suppliers
to inform and widen our understanding of ourbiodiversity impacts. This work will complement
our ESG supplier engagement program as we
support our suppliers to help reduce their impacts.

Source: Reuters, “Explainer: How close are we to passing 1.5 degrees Celsius of global warming?” 14 November, 2022.

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Case study

Nature Positive Challenge,
KPMG Australia
Protecting and enhancing biodiversity is one of thebiggest and most urgent issues facing our planet.
To help address this challenge, KPMG Australia
launched its Nature Positive Challenge, designed
to support some of the most innovative start-ups
working on ideas, solutions and technologies toaddress nature and biodiversity challenges.
More than 50 start-ups submitted entries to thechallenge, and four were shortlisted as finalists.
The finalists have been given free access to KPMG
Australia’s advisory services designed to help
them scale and grow, and the winner also received
AUD100,000 in funding. Over the course of thechallenge, the finalists also had opportunities to share
their ideas with critical stakeholders in Australia’s natural
capital ecosystem, including the New South Wales
State Minister for the Environment and Heritage, as
well as research, industry and community partners.
Through the challenge, KPMG Australia has directly
supported entrepreneurs with growth and scale-up
plans for their innovative solutions, including a carbonnegative and home degradable plastic alternative, a
digital twin for sustainable agriculture, tree-planting
drones and a natural capital intelligence platform.

KPMG: Our Impact Plan

60

People of KPMG
01 Material topics

Sumouleendra Ghosh
KPMG in India

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

The Ganga is the longest river in India andholds immense economic, sociocultural andreligious value to the people of the country.
However, pollution, deforestation,
unplanned urbanization and thedevelopment of industry and infrastructurein the river basin have all contributed to its
long-term deterioration.
I lead KPMG in India’s work with theGovernment of India’s National Mission for
Clean Ganga (NMCG) — the implementing
agency for a US$4 billion river rejuvenation
initiative called Namami Gange Mission.
During the time we’ve spent working on theinitiative so far, our team has provided
support to NMCG, helping to restore someof the most polluted stretches of the river.
I feel proud that in 2022, Namami Gange
Mission was selected as a World
Restoration Flagship of UN Decade. The

selection recognizes the project as one of themost promising examples of large-scale andlong-term ecosystem restoration in the world.
The recognition was also publicly acknowledgedby the Prime Minister of India, Narendra Modi.
And as Global Infrastructure Water Sector
Lead, I have a unique opportunity to help other
KPMG firms make their mark. For example,
I have been working with KPMG firms in East
Africa to launch a water mission week, bringing
together water access stakeholders in theregion to discuss opportunities to work together
in the future.
Access to clean water is going to be one of
the biggest issues that humanity faces, so it’s
important to me to be able to work on projects
that have a real impact and make use of theextensive knowledge KPMG has in the watersector.

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KPMG: Our Impact Plan

61

01 Material topics

02 Governance

Prosperity

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Making a positive social and economic impact.
We’ve made progress in unlocking our organization’s contribution toward economic and social prosperity, in line with
the UN Sustainable Development Goals. To us, prosperity is about what businesses are doing to make a positive
contribution to and impact on society and the communities in which they operate — being a good corporate citizen.
This means we strive to create meaningful employment opportunities; we generate wealth and contribute to
the economy through growing our business and paying taxes; we provide services for clients to help them drive
sustainability; and we invest in our communities through volunteering and donations.

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KPMG: Our Impact Plan

62

Our commitments
01 Material topics

02 Governance

03 People

04 Planet

Making a positive socialand economic impact• Support education and lifelong learning• P rovide UNESCO with pro bono resources for the Global
Education Coalition

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

63

Employment
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

We take our role in society seriously and are proudof the jobs we create and the careers we develop —whether it be the people who build a long-term career
at KPMG or the people we develop and enable withprofessional qualifications in their early careers whothen go on to varied roles in the private and public
sectors across the world.
In FY22, we brought more than 96,000 new hires
into our global organization and created nearly 30,000
net-new roles, investing in our workforce to support
growth by adding specialists and subject matter
experts at all levels. We face geopolitical uncertainty
and a turbulent economic environment, and while
continuing to invest in our people, we’ll remain vigilant
to ensure our workforce aligns with current andanticipated demand in the market.
KPMG firms overall hired more than 25,000
graduates, representing more than 25 percent of thetotal new hires throughout the KPMG organization.
These new hires will have the opportunity to benefit
from our structured development, including funded
professional qualifications and accreditations —gaining learning for a lifetime. They will haveopportunities to make an impact with their work as
well as outside of KPMG through volunteering andcommunity initiatives.

These new hires will have the opportunity to benefit fromour structured development, including funded professional
qualifications and accreditations — gaining learning for a lifetime.

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KPMG: Our Impact Plan

64

New hires and hire rate by gender

FY22
01 Material topics

Total new hires
02 GovernanceBy level

03 People

LeadershipManagement
Team members

04 Planet
05 Prosperity
06 Activating
our ESGcommitments

FY21

FY20

Total

Women

Men

Total

Women

Men

Total

Women

Men

96,558

48.1%

51.9%

71,974

48.7%

51.3%

42,354

48.5%

51.5%

1,605
11,731
83,222

28.3%
38.0%
49.9%

71.7%
62.0%
50.1%

1,084
7,639
63,251

25.4%
36.5%
50.6%

74.6%
63.5%
49.4%

847
4,498
37,009

26.2%
37.4%
50.3%

73.8%
62.6%
49.7%

21,526
19,74855,284

48.3%
56.3%
45.0%

51.7%
43.7%
55.0%

17,81017,50836,656

46.5%
57.2%
45.7%

53.5%
42.8%
54.3%

8,429
10,04323,882

48.6%
53.7%
46.2%

51.4%
46.3%
53.8%

By region
Americas
Asia Pacific
EMA

07 Indexes andexplanations

FY22
Total new hire rate

FY21

FY20

Total

Women

Men

Total

Women

Men

Total

Women

Men

38.8%

38.5%

39.1%

31.4%

31.7%

31.1%

19.0%

19.2%

18.8%

7.1%
19.5%
50.2%

7.4%
17.0%
47.1%

7.0%
21.4%
53.6%

5.2%
13.7%
41.4%

5.0%
11.7%
39.5%

5.2%
15.3%
43.7%

4.2%
8.5%
24.8%

4.3%
7.5%
23.6%

4.1%
9.2%
26.1%

34.1%
37.1%
41.7%

34.1%
38.7%
40.7%

34.2%
35.2%
42.6%

30.9%
36.1%
29.8%

30.0%
39.0%
29.3%

31.8%
32.8%
30.2%

14.9%
21.5%
20.0%

15.3%
22.0%
20.0%

14.5%
20.8%
20.0%

By level
LeadershipManagement
Team members

By region
Americas
Asia Pacific
EMA© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

65

Leavers and turnover by gender

FY22
01 Material topics

Total leavers
02 Governance

03 People

FY21

FY20

Notes:

Total

Women

Men

Total

Women

Men

Total

Women

Men

62,997

46.8%

53.2%

57,805

47.0%

53.0%

44,153

47.2%

52.8%

1,885
12,456
48,656

27.3%
39.7%
49.4%

72.7%
60.3%
50.6%

1,740
11,12544,940

25.5%
39.0%
49.8%

74.5%
61.0%
50.2%

1,736
8,627
33,790

25.2%
38.9%
50.5%

74.8%
61.1%
49.5%

13,88913,54735,561

46.3%
54.0%
44.3%

53.7%
46.0%
55.7%

14,368
13,61629,821

44.9%
54.7%
44.4%

55.1%
45.3%
55.6%

9,883
10,10824,162

44.7%
52.3%
46.2%

55.3%
47.7%
53.8%

By level

04 Planet

LeadershipManagement
Team members

05 Prosperity

By region

06 Activating
our ESGcommitments

Americas
Asia Pacific
EMA

07 Indexes andexplanations

FY22
Total turnover

FY21

1.	N ew hires and leavers by gender based
on KPMG partners and employees for the
fiscal years ended 30 September, excluding
contingent labor.
2.	F Y22 new hires include direct external hires
and hires by acquisition. In prior years, newhires by acquisition were excluded, in all
periods new hires by acquisition represent
less than one percent of the total hires.
3.	K PMG recognizes that gender is a spectrum,
and we’re committed to inclusivity and better
monitoring of gender identity beyond binary
definitions going forward. The headcountdata presented is based on data collectedacross sexual and gender identity.
4. Refer to the “Indexes and explanations”
section for further details.

FY20

Total

Women

Men

Total

Women

Men

Total

Women

Men

25.3%

24.5%

26.1%

25.2%

24.6%

25.8%

19.8%

19.6%

20.0%

8.3%
20.7%
29.3%

8.4%
18.9%
27.3%

8.3%
22.1%
31.6%

8.3%
20.0%
29.5%

8.0%
18.1%
27.6%

8.4%
21.4%
31.5%

8.6%
16.2%
22.6%

8.4%
14.9%
21.6%

8.6%
17.2%
23.7%

22.0%
25.4%
26.8%

21.1%
25.4%
25.8%

22.9%
25.4 %
27.8%

24.9%
28.1%
24.2%

23.4%
29.0%
23.2%

26.4%
27.1%
25.1%

17.4%
21.6%
20.2%

16.4%
21.6%
20.2%

18.4%
21.6%
20.3%

By level
LeadershipManagement
Team members

By region
Americas
Asia Pacific
EMA© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

66

New hires and leavers by age

FY22

FY21

01 Material topics

Age range

<25

25–35

35–45

45–55

55+

<25

25–35

35–45

45–55

55+

02 Governance% new hires by age

36%

49%

11%

3%

1%

36%

49%

10%

4%

1%

Hire rate

80%

38%

22%

13%

9%

% leavers by age

17%

63%

14%

4%

2%

13%

65%

14%

4%

4%

Turnover

25%

32%

19%

11%

14%

21%

31%

16%

10%

16%

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments

Notes:

07 Indexes andexplanations

3. Hire rate is calculated by dividing the number of new hires in the year by the average headcount in the relevant group of partners and employees.

1.	F Y22 new hires and leavers by age based on all KPMG partners and employees for the fiscal year ended 30 September 2022, excluding contingent labor. FY21 new hires and leavers by age based on KPMG partners andemployees across Reporting KPMG Firms. The data coverage was extended to the full network in FY22 as part of ongoing ESG reporting development.
2. The hire rate by age data is being reported for the first time in FY22 and comparative data is not available.
4. Turnover is calculated by dividing the number of leavers in the year by the average headcount in the relevant group of partners and employees.
5. Refer to the “Indexes and explanations” section for further details.

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KPMG: Our Impact Plan

67

Economic contribution
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments

During continued economic and geopoliticaluncertainty, robust numbers and consistent growth
were achieved across all functions at KPMG firms.
For FY22, KPMG reported annual aggregated global
revenues of US$34.64 billion — an increase of
14 percent from FY21.6 Advisory achieved the largest
growth increase — up 19 percent on FY21 across
KPMG firms globally. Tax & Legal7 experienced
10 percent growth while Audit grew eight percent,benefiting from a combination of the investments
made in technology and our KPMG firms’ globallyconnected local knowledge.

FY22 revenue includes more than 15 percent inlocations that the UN categorizes as developing
regions, and the growth we saw in some of those
Gross revenue by function
regions exceeded the levels of growth we saw in
KPMG firms across the global KPMG network.
AdvisoryThisgrowth has led to the addition of specialists Auditand subject matter experts at all levels, and as
we grow, our ability to strengthen our community
support does, too.

$15.44$34.64Gross revenues

Financials (FY22, US$ in billions)

Tax & Legal$7.35

07 Indexes andexplanations

Gross revenue by function
Advisory$15.44

For FY22, KPMG reported annual
aggregated global revenues of
US$34.64 billion — an increase
6of14
percent
from
FY21.
$11.85Strong revenues promote prosperity

Gross revenue by region
Audit$34.64$11.85

EMA$14.62Gross revenues$34.64Gross revenues

Tax & Legal$7.35

Americas$13.71

Asia Pacific$6.31

Gross revenue by region
6

14 percent is based on the growth in continuing operations and excludes the FY21 and FY22 revenues from businesses sold or countries fromwhich KPMG exited during this period. When not restated, the revenue growth is 13 percent.

7

Certain member firms of the KPMG global organization, including the US firm, do not provide legal services or have KPMG Law service entities.

EMA$14.62$34.64Gross revenues

Americas$13.71© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

68

Gross revenue by function and region

01 Material topics

Gross revenue
by function

FY22
US$ billions

FY21
US$ billions

FY22change in US$

FY21change in US$

FY22 change inconstant FX

FY21 change inconstant FX

Audit

11.85

11.46

3%

4%

8%

1%

Tax & Legal

7.35

7.02

5%

8%

10%

5%

Advisory

15.44

13.65

13%

17%

19%

13%

Total

34.64

32.13

8%

10%

13%

6%

Americas

13.71

11.88

15%

6%

16%

6%

Asia Pacific

6.31

5.97

6%

13%

13%

8%

EMA

14.62

14.28

2%

12%

11%

7%

Total

34.64

32.13

8%

10%

13%

6%

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Gross revenue
by region

Notes:
1. Gross revenue data presented for the fiscal years ended 30 September.
2. Reflects KPMG’s financial performance expressed in US dollars. Based on gross revenues, including travel and other client reimbursable expenses.
3.	T he financial information set out represents combined information of the independent KPMG member firms that perform professional services for clients, affiliated with KPMG International Limited. The information is
combined here solely for presentation purposes. KPMG International Limited performs no services for clients nor, concomitantly, generates any client revenue.
4.	Revenue growth in FY22 from continuing operations was 14 percent, this excludes the FY21 and FY22 revenues from businesses sold or countries from which KPMG exited during the year. When not restated, therevenue growth is 13 percent.
5. Refer to the “Indexes and explanations” section for further details.

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KPMG: Our Impact Plan

69

Operational taxes paid

01 Material topics

02 Governance

03 People

04 Planet

FY22
US$ billions

FY21
US$ billions

Employer payroll taxes

1.7

1.5

Non-creditable sales tax

0.2

0.2

Other taxes

0.1

0.1

Total

2.0

1.8

Notes:
1. Includes entertainment, property, fringe benefit and other taxes.

05 Prosperity

2. Operational taxes data are for Reporting KPMG Firms.
3. Refer to the “Indexes and explanations” section for further details.

06 Activating
our ESGcommitments
07 Indexes andexplanations

Our approach to tax
KPMG firms generate and pay taxes in the countries
and territories in which they operate. Generating
and paying taxes is a key means by which we canmake a meaningful contribution to the communities
in which KPMG firms operate. These contributions
to governmental revenues support governmental
functions, public benefits and the development of
infrastructure such as health systems, education andtransport networks.
We have a responsible approach to tax, strong
governance and policies and are committed totransparency around tax.
•	
Our tax contribution: KPMG firms’
contributions include taxes paid directly, thosecollected on behalf of governments and those
paid directly by partners and employees.

•	
Tax paid directly (operational taxes): In FY22,
Reporting KPMG Firms paid a total of US$2.0
billion in operational taxes (up from US$1.8 billion
in FY21), which included employer payroll andsocial security taxes, non-creditable sales taxes,
property taxes, entertainment taxes and othermiscellaneous taxes.
• Tax on profits: As a network of member firms,
KPMG does not have a requirement to prepare
consolidated financial statements. The legal
structure of KPMG firms varies. Many firms
are structured as partnerships that are “flowthrough” for tax purposes, although there areother structures, such as corporate entities
that pay corporation tax. Tax laws and reporting
requirements also vary by jurisdiction. The
characteristics of a partnership are such thatthe obligation to pay tax on the profits is on the© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

individuals rather than the partnerships, and many
KPMG firms don’t have access to the details of
individual partners’ tax paid.
• Taxes collected on behalf of governments:
With revenue in FY22 of US$34.64 billion, KPMG
collects a significant amount of taxes on behalfof the governments in the jurisdictions in which
KPMG firms operate, particularly in relation toemployee payroll taxes and sales taxes.
•	
Approach to tax policy: KPMG has a global
policy to set the standard and expectations aroundmember firm and partner tax affairs. There are alsorisk management practices in place to help ensurethat tax affairs have been conducted in accordancewith the relevant local laws and regulations and inharmony with global tax principles.

KPMG: Our Impact Plan

70

Communities
01 Material topics

Uplifting our local communities
02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our charitable and non-profit support isdirected toward organizations and initiatives
that meet a compelling community need. We’refocused on areas where we have a significant
presence — such as education and lifelong
learning — and on programs and initiatives
where we can make a meaningful impact.
In FY22, we made significant investments
in social impact through our sponsorships,
fundraising, contributions to the communityand donations, focusing on social impact
priorities. Through these investments, we
utilize the range of skills within our organization
to have a strong impact on those in need, while
also using our public voice to support those
who are marginalized.

618,000 US$148

millionvolunteer andpro bono hours
by KPMG peopleof financial
support to local
communities

up

up

28%

18%

from FY21

from FY21

People of KPMG
Briana Haines
KPMG in the US
I’m passionate about accessibility andinclusivity. I believe that bringing people ofdifferent perspectives and abilities to work
together is the key to unlocking progress
and prosperity.
Championing accessibility is something
I do every day in my role at KPMG in the
US working with our document processing
and graphics teams — but mycommitments go beyond this.
I’m heavily involved with the Special
Olympics, a sports organization for people
with intellectual disabilities. I serve as aboard member for my state’s Special
Olympics program, am the secretary of theexecutive committee, chair thedevelopment committee, and am involvedin organizing local events. I’m also aSpecial Olympics-appointed Unified Sports
Delegate for golf, which saw me attend
the Special Olympics World Games in Abu
Dhabi, as well as the Special Olympics
German National Games in Berlin.
My experience with Special Olympics was
one of the most fulfilling experiences of© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

my life, and I have KPMG to thank for it. I firstgot involved as a direct result of KPMG in the
US’s sponsorship of the organization and apartner in my local office encouraging me to put
my hand up for a role organizing our KPMG
volunteers. And as time has gone on, I have had
the full backing of a team that recognizes theimportance of what Special Olympics does andgives me the time and flexibility to attend eventsand meetings, even during busy periods.
I feel lucky to work for a firm that really walks thetalk and gives me so many opportunities to put
what I stand for into practice.

KPMG: Our Impact Plan

71

Community investment value and hours

FY22

FY21

FY20

US$ millions

US$ millions

US$ millions

Cash donations by KPMG partners and employees

30

26

30

02 Governance

KPMG member firm and Foundation donations

62

51

49

03 People

Cash contributions from KPMG member firms, partners and people

92

77

79

Pro bono engagements

10

12

12

Volunteering

26

18

17

Total pro bono and volunteering

36

30

29

Other (including management costs)

20

18

16

Total community investment value

148

125

124

Value
01 Material topics

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Hours

No. of hours '000

Pro bono engagements

69

81

81

Volunteering

549

403

395

Total community investment hours

618

484

476

Notes:
1. Community investment data based on information received from 39 member firms (38 member firms in FY21 and FY20) including Reporting KPMG Firms.
2.	F Y21 includes a small number of additional firms compared to FY20, as part of ongoing ESG reporting development. Their contribution was approximately US$3 million and 8,000 hours.
3.	Values reflect the activity supported, including for pro bono engagements, which are valued at marketplace value and other volunteering activities which are based on cost to KPMG or minimum wage.
4. Refer to the “Indexes and explanations” section for further details.

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KPMG: Our Impact Plan

72

Communities

01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

reach, we will leverage technology, make donations
and expand volunteering and pro bono work.

Our commitments:

Global Skills Academy• Support education and lifelong learning

In collaboration with UNESCO, we’re forging an
innovative collaboration to scale up the Global
Skills Academy (GSA), which includes 23 membersof the Global Education Coalition. The GSA aims
to provide access to free and demand-driven
online training opportunities to increase learners’
employability and resilience in a changing labormarket. The objective is to encourage and inspire
existing and new GSA members to further
collaborate and combine skills and resources
to create a more inclusive, equitable andprosperous world as set out by the UN Sustainable
Development Goals.

• Provide UNESCO with pro bono resources for
the Global Education Coalition
Focus on education
KPMG is focused on making significant contributions
toward achieving UN Sustainable Development Goal
4 to help ensure inclusive and equitable education
for all.

10by30 strategy
In FY22, we made progress on our commitments to
help economically empower 10 million disadvantaged
young people by 2030 through education, employment
and entrepreneurship opportunities. KPMG isdelivering on this vision through a framework that will
equip students with the skills to succeed in the labormarket; support job transition by providing students
with knowledge, mentorship and opportunities
to access work; and help transform the education
ecosystem by upskilling educators and helping tocreate more effective education institutions.
As part of KPMG’s ongoing commitment to help
young people develop the skills to help them
become future-ready, we’re working with KPMG
firms around the world to support them on theirjourney toward the world of work.
We’re continuing to strengthen our global
collaboration with UNESCO and rallying behind an
initiative we call “IT’s Her Future” to empower girls
and women with technology skills. To scale ourTo ensure the plan is informed by data andevidence-driven insight, UNESCO has undertaken
research — funded by KPMG — to analyze thelabor market opportunity, skills gap and bestpractice approaches to bridging the deficit at scale.
The labor market analysis examines the skills inhighest demand for decent jobs — whether throughemployment or entrepreneurship — at a global
level and also in priority geographies. This is being
compared to the supply of these skills to identify
the greatest skills gaps that the GSA, together withits members, can invest in, to open up economic
opportunity for young people being left behind. The
research is also analyzing the most effective ways
to address those skills gaps and support students totransition from education to work.

increasing the capacity of technical and vocational
education and training institutions, and deploying
enabling technology.
Planned pilot initiative
As part of KPMG and UNESCO’s Cooperation on
Youth Economic Empowerment Initiative launchedin March 2022, KPMG in India is providing theexpertise and knowledge of 100 mentors based inIndia, to be paired up with 100 young people aged
18 to 25 currently being trained by the National Skill
Development Corporation International. The selected
mentees hail from a low-income background, withequal participation from both women and men.
Ukraine secondees
KPMG funded two secondees from our office in
Ukraine to UNESCO to work on education initiatives
for young people displaced by the war. The
development of the post-war education recovery
strategy includes analysis of gaps both before andarising from the war; identification of programs,
capabilities and resources available at UNESCO that
could be used to close these gaps; and discussion of
the identified gaps and matching UNESCO resources
with the Ministry of Education and Science of
Ukraine for the purposes of developing a steps planfor post-war recovery.

The findings from this research are informing the
GSA’s delivery plan. This will include leveraging
existing UNESCO platforms and processes,© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

73

People of KPMG
01 Material topics

Maksym Zavalnyy
KPMG in Ukraine

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Since Russia’s war in Ukraine began, I havefelt a need to do whatever I can to makeeven the smallest difference in people’s
lives and help my country navigate themany challenges it now faces.
So, when my colleague and I were offered
the chance to be seconded to work for
UNESCO in Ukraine, setting up its base here
and helping transition the education system,
we couldn’t say yes quickly enough.
As UNESCO secondees, we help in a
number of ways. We’ve been involved in a
program to give Ukrainian teachers the
skills and tools they need to teach remotely
now that it’s no longer safe to meet theirstudents in physical classrooms. As part ofthis, I helped manage the import anddistribution of more than 50,000 donatedlaptops to teachers across the country.
We’ve also been involved in work tosafeguard the mental health of, and help
ensure the availability of, psychosocial

support to teachers and students.
In addition, I have been working closely with
UNESCO departments to develop Ukraine’s
post-war education recovery strategy, which is
closely tied to government economic recovery
plans. To be part of a project like this has given
me hope as I look toward the future.
As well as giving me the opportunity to put myskills and knowledge to good use to help ourcountry, KPMG in Ukraine has been critical in
making sure I have everything I need to work.
I have a young son, and KPMG in Ukraine has
always made clear that my safety and that of myfamily come first.
The situation is uncertain right now, but I’m
proud to work at KPMG, where ourcollaborations and networks give people like me
opportunities to contribute positively to some of
the biggest challenges the world faces.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan74

IT’s Her Future

01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

This is a global program designed to encourage more
women into technology careers and to support their
ongoing development and progression, whether
they’re still in school, just setting out on a career pathor are looking to move into senior roles. The goal is
to champion change for women in the IT industry.
The program includes providing mentors, internaland external events, networking opportunities andtargeted learning, as well as opportunities to serve
as non-executive members of boards, even from ajunior level.
Member firm initiatives:•	
KPMG in the US: Summer Immersion Programwith Girls Who Code, focused on computerscience, resumes and interviews.
•	
KPMG in the UK: Tackling gender diversity at
KPMG and beyond through school workshops,
career talks, mentoring and work shadows with
Next Tech Girls, Code First Girls and others.
(Participation has also expanded to Australia,
China (HK), the Netherlands, Belgium and Malta).
•	
KPMG in France: “Les Ambitieuses Tech forGood” is a nine-month program with La Ruche
for women who drive social entrepreneurshipprojects. It includes coaching, training and scaleup strategy support.
• K
 PMG in India: Supporting 260 girls throughAspire with technology and other skills, laptops
and financial support. The program is designed tohelp build the skills and abilities of disadvantaged
girl students through quality education, regularmentoring and other pertinent inputs thatenhance their employability.

People of KPMG
Arline Kitoto
KPMG in Kenya

As a firm believer in the value of
mentorship, when KPMG in Kenya offeredme the opportunity to become a mentor
via the Global Give Back Circle, I knew thiswas the perfect way for me to make apositive impact on the lives of others.
The Global Give Back Circle is an
education, mentorship and employmentreadiness program designed to help at-risk
girls in Kenya become economicallyempowered leaders, with a specific focus
on science, technology, engineering andmathematics (STEM). The program’s‘circularity’ comes from those it hashelped, later giving back by supporting thenext generation of girls in their community.
KPMG in Kenya supports the Global Give
Back Circle by providing mentorship to thegirls it’s working with and participating inand supporting its awareness-raising andeducational events.
As a mentor, I’ve had the opportunity towork with a university student who, justlike me when I was her age, needed help

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

working out her next steps after graduating. I
was able to use my professional experiences at
KPMG in Kenya to provide meaningful guidanceand support with job applications. I’m proud tosay that my mentee is now pursuing a career inaccounting — something she felt she would nothave been equipped or confident enough to do
before participating in the program.

KPMG: Our Impact Plan

75

Case study

STEM is HER Future, KPMG China
01 Material topics

02 Governance

03 People

04 Planet
05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Technology is going to be a critical part of how we work and live in the future, but moreneeds to be done to nurture women’s talents in STEM.
KPMG China runs the STEM is HER Future program in collaboration with the Yiyou
Youth Center, which aims to help promote STEM careers to promising womenstudents. In 2022, the program was recognized by UN Women at the National Women’s
Empowerment Principles awards as the top winner in the Community Engagement andPartnerships category.
The program sees young women attend a series of specially designed online courses, allof which have been developed to help them write a business plan for a solution or service
that uses STEM to tackle looming industry issues. The students present their plans toa panel of KPMG professionals, and the best are invited to a final competition at KPMG
China’s office in Shanghai.
The program is designed to give students insights into industry trends and knowledge.
KPMG China also offers participants the chance to attend career workshops. KPMG
China’s volunteers dedicate time to the program as course tutors, program coaches andcompetition judges, using their professional skills to empower students.
In 2022, the program reached over 1,700 women from 281 universities in 27 provinces
in China. And the response from those students is overwhelmingly positive — telling the
Chinese firm that the program improved their confidence in their STEM skills, and they are
more likely to pursue a STEM career as a result. Thirteen students even went on to intern
at KPMG China in the KPMG Digital Ignition Centre and in the Advisory function.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Providing disaster relief
In the wake of disasters around the world, whether
from wars or natural disasters, vulnerable populations
are disproportionately at risk. As a global organization,these issues impact us all. When a crisis hits, we have a
responsibility to help where we can:Ukraine support•	In response to the Russian government’s invasion of
Ukraine, we’ve helped our Ukrainian colleagues andthose affected in the region, including their immediatefamily members, to relocate to safer areas of Ukraineor leave the country if they wished, and supported
them financially throughout. With the help of our
KPMG firms and colleagues, KPMG International andmember firms contributed more than US$4.5 million
to UNICEF’s Ukraine Emergency Appeal, helping toprovide water and sanitation services, child protection,
psychosocial support, health services and emergency
cash assistance.
Pakistan support•	KPMG mobilized to provide critical aid and humanitarian
support to affected families as a result of catastrophic
flooding and made donations from KPMG Internationaland member firms and their people of more than
US$400,000. Significant efforts by KPMG in Pakistan,
supported by member firms and KPMG International,
continue to be provided to the country as it enters its
rebuild phase.

KPMG: Our Impact Plan76

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments

Activating our
ESG commitments

07 Indexes andexplanations

Our ESG commitments are not something we just report on —we strive to embed them across our global organization. We
can help deliver measurable, long-term impact by supporting
KPMG firms to meet our global targets, including how westructure our teams, address emerging standards and integrate
supply chain considerations into our commitments.

“Our Impact Plan is the blueprint for driving our internal
ESG transformation across the global organization and it
requires us to act boldly to achieve our commitments tomake impactful change.”© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Eliza Albronda
Global Head of Our Impact Plan
KPMG International

KPMG: Our Impact Plan

77

Committing to change within theorganization

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Our Global Head of Our Impact Plan has ramped up
progress in operationalizing our ESG commitments
across the global organization to share leading
practices and drive change. We also embedded moreaccountability within our team to better execute on
our commitments to track and report on our progress.
This new program delivery structure establishedleads for each of our Governance, People, Planet
and Prosperity pillars and across horizontal teams,
including member firm engagement, technology andprocurement.
All KPMG firms whose senior partner is also a Global
Board member have appointed Heads of Our Impact
Plan, and other countries and territories have regional
representatives to help them drive Our Impact Plan
progress. Building this accountability across theorganization helps us drive change and ensure we tella consistent story across all of our geographies.
The aim of the Our Impact Plan team is to:• engage the KPMG global organization, develop
guidance and identify and share best practices tohelp KPMG firms drive change and execute on
global ESG commitments• develop and implement global targets andstandards• expand and align our global ESG data reporting• report on progress each year

Doing this work helps ensure that KPMG firms areapplying similar tools, processes and strategies to ourown operations as those suggested when we offer
services to clients.

Integrating supply chain into ourcommitments
Delivery against Our Impact Plan commitments
requires us to assess the entire value chain, including
our supply chain. KPMG firms spend billions ofdollars through our supply chain, which cuts acrossmultiple industries. As a result, our supply chain has asubstantial impact on our ESG agenda, and in turn our
procurement teams — responsible for managing our
supply chain-related functions — are integral to ourjourney to a sustainable future.

The road ahead
Since our last report, we’ve engaged with the CDP
Supply Chain program and have invited more than
500 key global suppliers to disclose their carbon
footprint data through CDP. This year, we’re looking
to encourage increased participation and work with
our suppliers to identify opportunities to reduce thecarbon impact of our supply chain.
We’ve also taken the first steps in engaging our global
suppliers to identify potential modern slavery issues.
Looking ahead, we’re aiming to enhance supplierengagement to promote awareness of these issues
and create relevant risk mitigation plans.

Operationalizing
Our goal is to drive procurement practices acrossthe KPMG global organization that support ourcommitments. To help meet this goal, we’ve:• established a cross-border procurement working
group across key member firms to develop
standards and leading practices and build thecapability to subsequently share such expertisewith the rest of the network• developed a coherent approach to operationalizing
Our Impact Plan commitments that have a
supply chain impact to provide a consistent way
to determine a baseline, define targets, engage
our supply chain, measure performance andimplement improvement strategies that support
Our Impact Plan journey© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Since our last report, we’ve
engaged with the CDP Supply
Chain program and haveinvited more than 500 key
global suppliers to disclose
their carbon footprint data
through CDP.

KPMG: Our Impact Plan

78

ESG reporting standards

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

2022 was a year of intense activity for ESG
reporting standard setting, with a significant paceof development. As focus continues to shift to theimpact businesses have on the world around them,demand for transparency and accountability around
ESG has increased.
Some of the ways we’re embracing this reporting
evolution include, but are not limited to:• ISSB: In 2022, one of the ISSB’s main focuses
was on developing global reporting standards forclimate and sustainability-related matters. Our
membership in the ISSB Integrated Reporting
and Connectivity Council and the Technical
Reference Group shows our commitment tosupport this effort.

thematic areas are currently being used to develop
global standards by the ISSB and other emerging
frameworks globally.
• TNFD: In 2022, the TNFD, of which KPMG is amember, launched the second version of its beta
framework for nature-related risk and opportunity
management and disclosure. The market-led,science-based TNFD framework aims to enable
companies and financial institutions to integrate
nature into decision making.

Our other initiatives

business leaders with meaningful insights on how
they can improve existing levels of disclosure.
The findings in our 2022 Survey of Sustainability
Reporting reflect on the current state of reportingand overarching business strategies that canenable companies to meet increasing regulatory
expectations.
• Sustainability reporting resource center:
In November 2022, we launched our sustainability
reporting resource center, which provides
guidance on getting ready for the ISSB’s IFRS
Sustainability Disclosure Standards.

• Sustainability survey: On a biannual basis,
KPMG analyzes sustainability reporting to provide• WEF International Business Council: To
promote alignment among existing metrics anddisclosure frameworks, WEF and its partners
have identified a set of universal metrics anddisclosures — the Stakeholder Capitalism
Metrics. KPMG continues to support the
Stakeholder Capitalism Metrics initiative, and in
FY22, the WEF group’s efforts were focused on
encouraging key players and standard settersto continue working together toward a global
baseline.
• TCFD: The TCFD, of which KPMG is a member,has developed recommendations for more
effective climate-related disclosures. The
recommendations are structured around fourthematic areas that represent core elements of
how organizations operate: governance, strategy,
risk management, and metrics and targets. Those© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan79

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments

Indexes andexplanations

07 Indexes andexplanations© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

80

ESG data — basis of preparation

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

We anticipate that our reporting of metrics anddisclosures relevant to Our Impact Plan will, overtime, transition to adopt the new standards set by the
ISSB. We’ll continue to monitor developments in bestpractices from the industry through our own expertise
and will work with clients to help ensure that we
keep up with market-leading external reportingof developments and progress as it relates to Our
Impact Plan.
In 2022, we continued to make progress against ourcommitment to disclose or explain how we haveapplied the WEF IBC Core Metrics, as well as otherreporting frameworks, including the GRI standards
and the UN Global Compact Principles, while
reporting against our most material topics.
The tables that follow provide a summary of ourreporting against the key standards with links andreferences to where you can access associateddisclosures and information in our reporting.
Disclose or explain
We continue to be committed to addressing thegaps in our disclosures. To support our focus ontransparency, we apply the “disclose or explain”
principle for all the Stakeholder Capitalism Metrics.
The table on the following page provides details of
where to find our current reporting on a topic, andwhere necessary, outlines the primary reason for any
omission using the following categories:• (M) Materiality: Our assessment did not identify
these topics as the most material topics for our
stakeholders and organization. Therefore, we’ve
not prioritized capturing this data. In recognition
that these remain important issues, we willcontinue to work to develop processes to collectdata for future reporting where relevant.
• (L) Legal considerations: These relate to topics
where there are legal prohibitions or restrictions
to data collection or publication, such as asking
people their ethnicity in certain jurisdictions.
• (D) Data definitions and collection: We
continue to develop the scope and relevanceof our reporting. For these topics, there arelimitations on the availability of the data, or it has
not previously been collected from KPMG firms.

We’ll continue to monitor
developments in bestpractices from the industry
through our own expertise
and will work with clients to
help ensure that we keep up
with market-leading externalreporting of developments
and progress as it relates to
Our Impact Plan.

• (MG) Methodology not established: These are
metrics for which there is not a globally accepted
methodology. For example, there is not yet asector-based methodology to estimate the carbon
impact of the professional services KPMG firms
provide (i.e. our downstream Scope 3 emissions),
but we are committed to continuously improving
our consideration of the social, economic andenvironmental impact of KPMG firms’ services.

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KPMG: Our Impact Plan

81

UN Global Compact
Disclosure recommendation
01 Material topics

02 Governance

Disclosure

Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights; andGovernance: Human rights

2. make sure that they are not complicit in human rights abuses.
03 People

Labour04 Planet

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

05 Prosperity

4. the elimination of all forms of forced and compulsory labour;

06 Activating
our ESGcommitments
07 Indexes andexplanations

5. the effective abolition of child labour; and6. the elimination of discrimination in respect of employment and occupation.

Governance: Human rights
People: Inclusion, diversity and equity

KPMG International and KPMG firms
support freedom of association and,
where applicable, recognize the right tocollective bargaining.

Environment
7. Businesses should support a precautionary approach to environment challenges;

Planet8. undertake initiatives to promote greater environmental responsibility; and9. encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption
10. Businesses should work against corruption in all its forms, including extortion and bribery.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Governance: Acting transparently withintegrity and accountability

KPMG: Our Impact Plan

82

WEF IBC Core Metrics Index

01 Material topics

02 Governance

03 People

Governance
ThemeCore metrics and disclosures

GRI mapping

Location and notes

Governing purpose

Setting purpose

GRI 2-12

Quality of governing body

Governance body composition

GRI 2-9, GRI 405-1a

Stakeholder engagement

Material issues impacting
stakeholders

GRI 2-12, GRI 2-29, GRI 3-2

Material topics

Anti-corruption (D)GRI 205-2, GRI 205-3

Prosperity: Acting transparently with integrity and accountability

A message from our Global Chairman and CEO
Prosperity: Purposeful business

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Ethical behavior

Risk and opportunity
oversight

Protected ethics advice andreporting mechanisms

Governance: Our structure and governanceTransparency Report: Governance and leadership

Prosperity: Purposeful business
GRI 2-26

Integrating risk and opportunity
into business process© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Transparency Report: Living our culture and Values
Transparency Report: Being independent and ethical aterial topicsM
Our Global Quality & Risk Management Steering Group(GQ&RMSG) is chaired by the Global Head of Quality, Risk &Regulatory and its other members are the risk management
partners from the eight largest KPMG member firms and for eachof the three regions. GQ&RMSG is responsible for setting quality
and risk management policies and procedures for the globalorganization and for providing associated guidance.

KPMG: Our Impact Plan

83

PlanetTheme
01 Material topics

Climate changeCore metrics and disclosures

GRI mapping

Location and notes

Greenhouse gas (GHG) emissions (MG)GRI 305:1-3

Planet: Decarbonization
Planet: Climate risk

TCFD implementation (D)02 Governance

Nature loss

Land use and ecological sensitivity

GRI 304-1

Planet: Nature and biodiversity

Freshwater availability

Water consumption and withdrawal inwater-stressed areas (M)GRI 303-5

Planet: Nature and biodiversity

Core metrics and disclosures

GRI mapping

Location and notes

Diversity and inclusion (L)GRI 405-1b

People: Inclusion, diversity and equity

Pay equality (D)GRI 405-2

People: Inclusion, diversity and equity

Wage level (D)GRI 2.21, 202-1

People: Inclusion, diversity and equity

Risk for incidents of child, forced orcompulsory labor

GRI 408-1b, GRI 409-1

Governance: Human rights

Health and well-being

Health and safety (D)GRI 403-9a&b, GRI 403-6a

People: Health and well-being

Skills for the future

Training provided (D)GRI 404-1

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments

PeopleTheme

07 Indexes andexplanations

Dignity and equality© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

People: Learning and development
Transparency Report: Nurturing diverse skilled teams

KPMG: Our Impact Plan

84

Prosperity
Theme
01 Material topics

Core metrics and disclosures

GRI mapping

Location and notes

Absolute number and rate of
employment (L)GRI 2.7, 401-1a&b

Prosperity: Employment

02 Governance

Prosperity: Economic contribution
Prosperity: Communities

03 People

04 Planet

05 Prosperity

Employment and wealthgeneration

Economic contribution (D)GRI 201-1, GRI 201-4

06 Activating
our ESGcommitments

Government assistance — during FY22, several KPMG firms
received payments from governments in the normal courseof business. These represent locally applicable tax credits
and reimbursement of levies, including schemes where firms
had previously paid contributions. There were also a small
number of KPMG firms where COVID-19 related assistance
was received. This was in countries or territories where theschemes provided were mandatory or where support provided
was generally applicable to all employers.
There are limitations on providing certain economic
contribution indicators as KPMG is a network of member firms
and does not produce consolidated financial statements.

07 Indexes andexplanations

There are limitations on providing certain financial-related
indicators as KPMG is a network of member firms and does
not produce consolidated financial statements.

Financial investment contribution (D)Innovation of better
products and services

Governance: Purposeful business
Planet: Decarbonization

Total R&D expenses (D)Transparency Report: Embracing digital technology
Prosperity: Economic contribution

Community and social
vitality

Total tax paid (D)GRI 201-1© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

There are limitations on providing certain financial-related
indicators as KPMG is a network of member firms and does
not produce consolidated financial statements.

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85

GRI content index
KPMG’s Our Impact Plan has been informed by GRI standards (2021 update).

01 Material topics

GRI standard

02 Governance

GRI 2: General Disclosures 2021
03 People

Disclosure

Location

2-1 Organizational details

About usIndexes and explanations: Notes and explanations

2-2 Entities included in the organization’s sustainability
reporting

About usIndexes and explanations: Notes and explanations

2-3 Reporting period, frequency and contact point

Unless otherwise stated, the reporting is for the year ended
30 September 2022. Reporting is on an annual basis.

04 Planet

05 Prosperity
06 Activating
our ESGcommitments

Indexes and explanations: Contacts

2-4 Restatements of information

KPMG is committed to the ongoing development of its ESG data
to support Our Impact Plan commitments. As we work on this data
development, we occasionally have methodology or data scope
improvements where comparative restatements are required. An
explanatory note is provided when this is the case.

2-5 External assurance

A number of larger KPMG firms have external assurance over their
GHG and other ESG metrics.

2-6 Activities, value chain and other business relationships

About usMaterial topics
Governance: Purposeful business

2-7 Employees

People: Inclusion, diversity and equity

2-8 Workers who are not employees

People: Inclusion, diversity and equity
KPMG firms employed more than 28,000 people on a contingent
labor basis at 30 September 2022. Benefits available to employees
are in line or are above the requirements of local employment laws
and regulations.

07 Indexes andexplanations

2-9 Governance structure and composition
2-10 Nomination and selection of the highest
governance body© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

Governance: Purposeful businessTransparency Report: Governance and leadership
Governance: Purposeful businessTransparency Report: Governance and leadership
KPMG: Our Impact Plan

86

GRI standard

Disclosure

Location

2-12 Role of the highest governance body in overseeing
the management of impacts

Governance: Purposeful business
The Global Management Team’s role includes: (i) promoting
KPMG’s global strategy, incorporating KPMG’s public trust andgrowth ambition with the guiding principles of global consistency
and accountability, (ii) promoting the commitment to KPMG beinga multidisciplinary organization, (iii) leading by example by taking
pro-active steps to encourage trust, openness and challenge andby staying close to KPMG member firm markets in the way mostappropriate to their role, and (iv) supporting KPMG member firms
in their execution of the global strategy and KPMG International
decisions and policies, including holding them accountable against
their commitments.

2-13 Delegation of responsibility for managing impacts

Governance: Purposeful business

2-14 Role of the highest governance body in sustainability
reporting

The Global Board reviews and approves Our Impact Plan reporting.

GRI 2: General Disclosures 2021
01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

2-15 Conflicts of interest

Governance: Acting transparently, with integrity and accountability
Transparency Report: Being independent and ethical
Consistent with KPMG’s global policies, all personnel, including
Global Board members, are required to comply with detailed
policies on conflicts of interest and auditor independence, as wellas our Global Code of Conduct, which includes specific additional
responsibilities for leaders.
Global Board members, like all our people, are prohibited from acting
as the director or officer (including company secretary) of any nonKPMG entity except for a non-profit that is not an audit or assurance
client; an entity established for personal family reasons that is not aclient; or an appointment made in the normal course of conducting
restructuring engagements.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

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GRI standard

Disclosure

Location

GRI 2: General Disclosures 2021

2-16 Communication of critical concerns

Material topics
Governance: Purposeful businessTransparency Report: Living our culture and Values

2-17 Collective knowledge of the highest governancebody

Governance: Purposeful business
Global Board members have a broad range of economic and social
competencies, as well as having either economic/finance-relateddegrees and/or accounting qualifications. All have experience inrunning national KPMG practices which entails consideration of
economic, social and environmental issues and receive regular ESG
briefings.

2-22 Statement on sustainable development strategy

A message from our Global Chairman and CEO
Governance: Purposeful business

06 Activating
our ESGcommitments

2-23 Policy commitments

KPMG’s policy commitments are described throughout thisdocument, in the Transparency Report 2022 and on kpmg.com. A linkto the full policy is also provided where publicly available.

07 Indexes andexplanations

2-24 Embedding policy commitments

Code of Conduct
Governance: Purposeful businessTransparency Report: Living our culture and Values

2-25 Processes to remediate negative impacts

Code of Conduct
Governance: Purposeful businessTransparency Report: Living our culture and Values

2-26 Mechanisms for seeking advice and raising concerns

Code of Conduct
Governance: Purposeful businessTransparency Report: Living our culture and Values

2-27 Compliance with laws and regulations

Governance: Acting transparently, with integrity and accountability
Transparency Report: Living our culture and Values
Transparency Report: Being independent and ethical2-28 Membership associations

About usGovernance: Purposeful business

2-29 Approach to stakeholder engagement

Material topics

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan88

01 Material topics

02 Governance

GRI standard

Disclosure

Location

GRI 2: General Disclosures 2021

2-30 Collective bargaining agreements

KPMG International and KPMG firms support freedom of association
and, where applicable, recognize the right to collective bargaining.

GRI 3: Material Topics 2021

3-1 Process to determine material topics

Material topics

3-2 List of material topics

Material topics

3-3 Management of material topics

Material topics

03 People

04 Planet

05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

89

Notes and explanations
Acronyms
Term

Description

Term

Description

AI

Artificial Intelligence

ISSB

International Sustainable Standards Board

AJET

Alliance for a Just Energy Transformation

IDE

Inclusion, diversity and equity

ASPAC

Asia Pacific

IDERD

International Day for the Elimination of Racial Discrimination

AZOM

ASZA Office Mate

CDP

Formerly the Carbon Disclosure Project

ISQM 1

International Standards on Quality Management

CEO

Chief Executive Officer

L&D

Learning and development

COP

Conference of the Parties

LGBTQ+

Lesbian, gay, bisexual, transgender, queer (or sometimes
questioning) and others

CPE

Continuing Professional Education

NGC

Next Generation Council

CPO

Chief Purpose Officer

OECD

Organisation for Economic Co-operation and Development

06 Activating
our ESGcommitments

EMA

Europe, Middle East and Africa, including India

OYW

One Young World

ESG

Environmental, social and governance

SBT

Science-Based Target

EVP

Employee value proposition

SMI

Sustainable Markets Initiative

07 Indexes andexplanations

G20

Group of 20

GDP

Gross domestic producttCO2e/
ktCO2eTonnes/kilotonnes of carbon dioxide equivalent

GHG

Greenhouse Gas

TCFD

Task Force on Climate-related Financial Disclosures

GMT

Global Management Team

TNFD

Taskforce on Nature-related Financial Disclosures

GQ&RMSGGlobal Quality and Risk Management Steering GroupGRIGlobal Reporting Initiative

UNESCO

United Nations Educational, Scientific and Cultural
Organization

IAASB

International Audit and Assurance Standards Board

UNGC

United Nations Global Compact

ICP

Internal Carbon Price

WBCSDWorld Business Council for Sustainable Development

IESBA

International Ethics Standards Board for Accountants

WEF IBCWorld Economic Forum International Business Council

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

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Glossary

Term

Description

Community investment

Community investment is identified by two guiding principles: it is voluntary — there is no legal or contractual obligation to contribute — andit is charitable — it supports an organization or activity that is recognized as having a clear charitable purpose and/or community benefit.

Contingent labor

Contingent labor includes agency staff, KPMG-dedicated outsourced staff, temporary contractors and interns.

KPMG Climate IQ

Climate IQ is KPMG’s multi-industry risk management tool that can run multiple scenarios to address the questions clients have aroundtheir company’s exposure to climate change. It supports formulating strategic decisions in line with business needs and regulatory
requirements.

FY19

1 October 2018 to 30 September 2019

FY20

1 October 2019 to 30 September 2020

FY21

1 October 2020 to 30 September 2021

FY22

1 October 2021 to 30 September 2022

06 Activating
our ESGcommitments

GHG Protocol

KPMG follows 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 andother organizations preparing a GHG emissions inventory, also known as a carbon footprint. The GHG Protocol categorizes a company’s ororganization’s emissions into three separate scopes.

07 Indexes andexplanationsGRI

The Global Reporting Initiative is an international independent standards organization that helps businesses, governments and otherorganizations understand and communicate their impacts on issues such as climate change, human rights and corruption.

ISSB

The International Sustainability Standards Board is a standard-setting body established in 2021-2022 under the IFRS Foundation,
whose mandate is the creation and development of sustainability-related financial reporting standards to meet investors' needs forsustainability reporting.

Reporting KPMG Firms

Reporting KPMG Firms means KPMG member firms in 20 large countries and territories, including member firms whose senior partneris 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, Spain, South Africa, South Korea, Switzerland, the UK and the US. The corresponding
data from FY20 and FY21 included data from Russia which is no longer part of the KPMG network.

KPMG Foundations

Several KPMG firms have established separate community giving entities as KPMG Foundations. A KPMG Foundation typically isfunded by a periodic contribution by the affiliated KPMG member firm(s), has a separate structure, including its own administrative andmanagement costs.

Pro bono

Formal engagements, with a signed engagement letter and engagement code, that provide a professional service, skill or knowledge
which is offered free of charge by a KPMG firm to another organization being a non-governmental organization (NGO), beneficiaryorganization, non-profit organization, charity, social enterprise, school and/or other locally relevant civil society organizations (out-ofpocket costs, such as travel, may be charged to the client).

01 Material topics

02 Governance

03 People

04 Planet

05 Prosperity© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

91

01 Material topics

02 Governance

03 People

Term

Description

RE100

A global initiative bringing together the world's most influential businesses committed to 100 percent renewable electricity.

Scope 1: Direct GHG
emissions

Direct GHG emissions occur from sources the KPMG member firms owns or controls, including on-site stationary fuel combustion, fuelcombustion in owned/controlled vehicles, and fugitive emissions from leaks in heating, ventilation and cooling equipment.

Scope 2: Indirectemissions frompurchased electricity

Indirect emissions from purchased electricity, steam, heat or cooling which arise from the generation of power by a third party that isconsumed by a KPMG firm.

Scope 3: Other indirect
GHG emissions

04 Planet

Includes:05 Prosperity
06 Activating
our ESGcommitments
07 Indexes andexplanations

Upstream Scope 3 emissions include business activities that are relevant to a KPMG firm’s climate impact but are not under the directcontrol of a KPMG firm, such as supply chain, air travel, business travel in personal vehicles, rail travel and energy used in common areasof multi-tenant buildings (e.g. elevators, lobbies) and employee commuting. Downstream Scope 3 emissions would be the carbon impactof our client services. We do not currently estimate these, as there is no established methodology for professional services.

Skills-based
volunteering• Secondments, where KPMG periodically provides resources at no cost to civil society organizations. These may be on a full- or parttime basis over an extended period.
• Board or trustee appointments, where KPMG firm partners and employees frequently serve as board or trustee members ofcommunity organizations.
• Skills-based volunteering, where volunteering for a community-benefit organization and utilizing KPMG professionals’ skillsets. These
differ from pro bono engagements as they are typically shorter periods and not formalized as an engagement.

UN Global Compact

The UN Global Compact is a non-binding UN pact to encourage businesses and organizations worldwide to adopt sustainable and socially
responsible policies, and to report on their implementation.

UN Sustainable
Development Goals

The UN Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as auniversal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
Source: www.UNDP.org

Notes on basis of preparation
1. Throughout this document, “we”, “KPMG”, “us” and “our” refers to the KPMG 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.
2. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any
such authority to obligate or bind any member firm.
3. The financial information set forth in this document represents combined information of the independent KPMG member firms, affiliated with KPMGInternational Limited, that perform professional services for clients. The information is combined here solely for presentation purposes. KPMG International
Limited performs no services for clients nor, concomitantly, generates any client revenue.
4. As of 30 September 2022, KPMG firms operate in 143 countries and territories. All metrics are for the network as a whole unless otherwise stated.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG: Our Impact Plan

92

Contacts
For more information on our ESG journey and the details within
Our Impact Plan, please contact:
Jane Lawrie
Global Head of Corporate Affairs
KPMG International
E: jane.lawrie@kpmg.co.uk

Eliza Albronda
Global Head of Our Impact Plan
KPMG International
E: ealbronda@kpmg.com

To learn how KPMG can support you on your ESG journey,please contact:
John McCalla-Leacy
Head of Global ESG
KPMG International
E: john.mccalla-leacy@kpmg.co.uk

kpmg.com/ourimpactplan

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 suchinformation 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.
© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
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. KPMG International Limited is a private English company limited byguarantee and does not provide services to clients. For more detail about our structure please visit kpmg.com/governance.
Throughout this document, “we”, “KPMG”, “us” and “our” 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.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.
Designed by Evalueserve.
Publication name: KPMG: Our Impact Plan
Publication number: 138640-G
Publication date: April 2023