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      Our commitments

      1. Decarbonisation

      • Become a net-zero business (KPMG Global ambition
      • Source 100% renewable electricity through purchasing renewable energy certificates (RECs) and sourcing renewable energy supplies
      • Report our climate performance 
      • Drive behavioural change to improve environmental practices in our workplace  

      2. Nature and biodiversity

      • Understand our impact on nature and biodiversity, and make positive improvements

      3. Climate risk

      • Give financial markets, clients and our leaders clear, comprehensive, high-quality information on the impacts of climate change
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      In a world facing unprecedented environmental challenges, our commitment to sustainability is not just a responsibility – it is a transformative opportunity. We recognise that our actions today shape the world of tomorrow. By embedding sustainability into our core operations, we are not only reducing our environmental footprint but also fostering a culture of innovation that drives us towards a resilient and sustainable future.

      Jeffrey Wong

      Chief Operating Officer

      KPMG China

      Ivy cheung

      Decarbonisation

      Our global commitment: Become a net-zero business

      Our climate strategy takes into account the key contributors to carbon emissions within our operations, aiming to halve our global emission by 2030 compared to our FY19 baseline. This ambition drives our efforts and shapes our decision-making processes.

      To ensure our approach remains adaptive and effective, we conduct an annual scenario analysis of our carbon performance with the support of our ESG Advisory team, which allows us to refine our strategies and ensure accountability. A vital element of our approach is the implementation of an internal carbon price (ICP), which guides our resource allocation and encourages sustainable practices across the organisation.

      We acknowledge the significant challenges posed by our two largest sources of emissions: business travel and purchased goods and services. Tackling these areas is critical to realising our net-zero ambition. Through targeted initiatives and resource commitments, we aim to catalyse impactful change and address climate challenges. Our approach reflects our dedication to environmental responsibility and our determination to contribute positively to a sustainable future.

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      People story – Daisy Shen

      I’m Daisy Shen, and I have been working at KPMG for 25 years since I graduated from college in 2000. Although I’ve been with KPMG for almost my entire career, I have taken on multiple roles – from initially delivering transaction services, to my secondment in the UK, during which time I applied to work in the KPMG Global Chairman's Office and the KPMG Energy Centre of Excellence. Afterwards, I helped set up KPMG China’s Energy Advisory team and ESG Advisory team. By constantly stepping out of my comfort zone, I’ve actively embraced change, accumulated diverse expertise, and grown alongside exceptional teams in China and experts across KPMG’s global network. I like to think my professional trajectory stands as a blueprint for creating lasting impact.

      Since 2021, I have played a leading role in setting up KPMG China's ESG Advisory team, and in November 2024, I became head of ESG at KPMG China. Climate change has become a global challenge that presents both risks and opportunities for enterprises. Analysing climate-related risks and opportunities, developing and executing transformation plans, and incorporating them into corporate strategies have become the key to achieving long-term sustainability.

      Take our engagement with a leading multinational retailer as an example. As a large listed company in Hong Kong, the client is expected to disclose its 2025 ESG report in 2026 to meet the requirements of the Hong Kong Stock Exchange, including mandatory disclosure of climate-related information. To help the client, we started by identifying climate-related risks and opportunities, and analysed the physical impact of asset losses, supply chain disruptions and operational disturbances that may be caused by extreme weather events. We then prepared a report based on the results. At the same time, we also identified climate-related opportunities and offered recommendations to assist the company in improving its energy efficiency, developing low-carbon products and services, and devising climate adaptation solutions. Moving forward, we will support our client in evaluating related financial impacts, incorporating climate factors into its strategy, assessing the sustainability of existing business models and exploring paths to low-carbon transformation. Through these efforts, we aim to help the client seize market opportunities, enhance transparency and disclosure, and bolster investor confidence.

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      At KPMG China, we lead by example and firmly believe that ESG is more than a written report. It is also a core component of our corporate strategy. We are committed to making ESG a watermark running through our organisation. For example, ‘circularity’ is a key decarbonisation lever, and KPMG’s ESG Advisory team has accumulated industry-leading experience in respect of the circular economy. To create lasting impact for our client, we have developed a ground-breaking ‘Recyclable, Reusable and Decomposable’ framework that delivers circularity solutions in the short term, while reducing costs and improving the recycling rate. In the long run, the framework also lays a solid foundation for the implementation of a sustainable packaging transformation programme. At the same time, we also identify new opportunities for our client so that they can scale the project impact. Internally at KPMG China, we have effectively reduced waste and optimised resource usage and management by integrating circularity into aspects of our operations, such as in office renovation projects, procurement practices and other recycling initiatives.

      In this fast-changing world, we need to champion long-term value creation and continue to learn, focus and explore new value propositions. For example, as climate change drives the transformation of global supply chains, technological innovation has become a key force shaping the future of ESG. Leveraging technologies like artificial intelligence and big data, we can help clients identify risks and opportunities, support decision-making and develop more forward-looking sustainability plans. KPMG’s continuous efforts in ESG reflect our dedication to integrating social values into professional services to meet evolving needs in these times. Going forward, I will continue to uphold this proposition and work with others to forge ahead.

      Our commitment: Report our climate performance

      Our annual Global Climate Response (GCR), which is aligned with the Greenhouse Gas Protocol, highlights our ongoing commitment to transparent, science-based reporting and helps us maintain disciplined oversight of our emissions profile.

      To further strengthen the rigour and credibility of our disclosures, and to support KPMG’s global plan to work towards a hybrid approach to ESG assurance over key selected metrics (including decarbonisation), we are working with our internal professional team to help conduct an ESG assurance readiness assessment. This will be based on FY24 data, enabling us to identify gaps and areas for enhancing data reporting processes. 

      Over the past year, our focus has remained on embedding long-term decarbonisation strategies throughout our operations and value chain, and we have continued to make progress in managing our carbon footprint. In FY24, our total net emissions decreased to 73,721tCO2e, a 7.9% decrease from FY23. While FY24 has seen a reduction in overall emissions, we remain committed to further reducing our emissions.

      Looking ahead, we will continue to improve collaboration with our stakeholders across the value chain and leverage data-driven insights to accelerate progress. In addition, the ESG assurance readiness assessment mentioned above will help better align our reporting with global best practices, enhancing transparency and accountability.

      Greenhouse gas (GHG) emission (tCO2e) in FY2024

      Scope 1 emissions

      188

      FY24

      Scope 2 emissions

      (net of RECs)

      0

      FY24

      Scope 2 emissions

      (location-based)

      8,377

      FY24

      Scope 3 emissions

      73,533

      FY24

      % change in GHG emissions

      (net of RECs)

      ↓7.9%

      FY24 VS FY23

      RECs means renewable energy certificates.

      Our commitment: Source 100% renewable electricity

      Since FY21, we have upheld our commitment to sourcing 100% renewable electricity through the purchase of renewable energy certificates (RECs). In FY24, we continued to purchase International Renewable Energy Certificates (I-RECs).       

      Looking ahead, we are optimistic about the growth of the green electricity market in China and are actively exploring opportunities to purchase Green Electricity Certificates (GECs) to further support national renewable energy initiatives.

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      Our commitment: Drive behavioural change to improve environmental practices in our workplace

      Implementation of an internal carbon price

      Launched on 1 October 2022, our internal carbon price (ICP) initiative plays a crucial role in advancing our decarbonisation efforts. By applying the ‘polluter pays’ principle, a fee is charged to responsible departments based on emissions from business travel, including air travel, rail travel and hotel accommodation.

      The ICP effectively integrates carbon considerations into our business decisions, and collected funds are directed towards impactful decarbonisation projects. We have established several eligible spending categories, including decarbonisation solutions, net-zero solutions and internal behavioural change programmes, all of which support our sustainability commitment. To oversee the allocation and effectiveness of these funds, we have implemented a governance mechanism that reviews the usage of ICP funds annually, so as to help drive emissions reduction.

      A greener approach to business travel

      As a people-centric business, we recognise the value of in-person collaboration, while remaining aware of the environmental impact of our travel. To address this, we have implemented initiatives that encourage more sustainable travel choices, allowing us to maintain strong connections while being mindful of our carbon footprint.

      In 2023, we introduced our Green Routes initiative, which prioritises rail travel for shorter distances instead of air travel. In addition, we advocate for virtual meetings whenever feasible, providing our people with the tools to reduce unnecessary travel and lower carbon emissions. 

      In 2024, we launched a new online travel booking tool – a digital platform that simplifies the booking process and displays the estimated carbon footprint of each trip. By raising awareness of the environmental impact of travel, we aim to empower employees to make greener travel decisions that align with our commitment to sustainability.

      Through these efforts, we are actively working to reduce emissions associated with business travel, while fostering collaboration that can drive our success.

      Sustainable supply chain

      Our sustainable supply chain strategy aims to embed sustainability into our existing procurement processes. This involves monitoring and enhancing the sustainable performance of our suppliers, while cultivating stable relationships that foster long-term, sustainable value. 

      To implement this strategy, we have a dedicated Global Procurement ESG Working Group that works closely with key stakeholders at the global and local member firm levels to assess sustainability risks in procurement and identify key priorities. This group has developed clear, defined objectives, which guide the implementation of our action plan and enable effective performance measurement.

      Supplier engagement

      Our approach to supplier engagement emphasizes collaboration, working closely with suppliers to uncover opportunities for reducing the carbon footprint of our supply chain. This includes our participation in the CDP Supply Chain Programme, which promotes transparency and accountability among suppliers. Additionally, we have standardised our sustainability check process for critical sourcing projects and organised annual supplier webinars to share insights and best practices.

      Promotion of circularity

      Our circularity strategy focuses on enhancing sustainability in different aspects of the business. By identifying opportunities for improvement, we aim to integrate circular practices across more facets of our operations. This involves circular procurement practices to reduce waste, as well as optimising material usage and ensuring effective end-of-life treatment for various items. We have pinpointed three key areas to drive this strategy:

      • IT equipment: We aim to ensure responsible management and disposal of IT hardware, including refurbishment and recycling initiatives, among other programmes.
      • Offices: Guided by our Green Fit-Out Guide, we are committed to sustainable practices in property management, including building selection and renovation, with a view to creating environmentally responsible workspaces. Our flagship Green Corner initiative helps champion circularity by offering spaces in our offices where our people can exchange and donate items that are in good condition, including books, clothes and household goods.
      • Events and catering: By following our Green Events & Souvenirs Guidelines, we aim to reduce waste and align the firm’s event management and catering selections with our sustainability goals.
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      Empowering communities through circularity

      In addition to promoting circularity to transform our own operations, we are also extending our circularity efforts to the wider community. By donating retired laptops to non-profit organisations, we are able to promote the circular economy while also providing educational support for school children or those in need. Remaining laptops, as well as monitors, are sent to resellers, helping ensure they have a second life. 

      In September 2024, ‘KPMG Green IT Classrooms’ were set up in Malipo, Yunnan province to provide digital infrastructure and support the digitalisation of three rural schools. For this project, KPMG donated 150 second-hand laptops, as well as funds received from recycling office furniture, to Shanghai Zhonggu Youth Development Centre, which helped build the green IT classrooms. KPMG volunteers also conducted school missions and taught tailored courses to enhance the rural students’ digital literacy and help them develop future-ready skills. This initiative demonstrates our dual commitment to promoting a circular economy while supporting our 10by30 strategic goal.

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      Nature and biodiversity

      Our commitment: Understand our impact on nature and biodiversity, and make positive improvements

      In October 2024, KPMG globally signed on to be an adopter of the Taskforce on Nature-related Financial Disclosures (TNFD) to align with best practices in the industry and to help deliver a nature positive future together with key stakeholders. 

      At KPMG, we are dedicated to protecting nature and biodiversity, recognising the essential role ecosystems play in the planet’s health and in our business sustainability. We mobilise our resources for projects that preserve and restore ecosystems, working collaboratively with organisations such as the Mangrove Conservation Foundation (MCF) and the World Wide Fund for Nature (WWF), among others. 

      The Guangdong-Hong Kong-Macao Greater Bay Area ESG Biodiversity Corporate Recognition Award

      Biodiversity is the foundation of ecosystem health and sustainability. To recognise the business community’s efforts in promoting environmental stewardship and biodiversity conservation, we launched the Guangdong-Hong Kong-Macao Greater Bay Area ESG Biodiversity Corporate Recognition Award, in partnership with multiple renowned organisations, including the One Planet Foundation, MCF, the Guangdong Provincial Academy of Environmental Sciences, the Shenzhen Finance Institute of the Chinese University of Hong Kong (Shenzhen), the Guangzhou Emissions Exchange and Hong Kong Commercial Daily.

      By recognising outstanding enterprises in biodiversity conservation, the award aims to leverage the influence of corporate pioneers to establish an industry benchmark and ultimately encourage corporate leadership and innovation in biodiversity initiatives. We hope that more enterprises will join forces to promote ecological and environmental protection in the GBA, and even across the country.

      The award recognition ceremony took place in October 2024, aligning with the celebration of the ‘Franco-Chinese Month of the Environment – Prospering by the Water’ event, ‘The 7th Futian Spoonbill Festival’, and ‘The 4th Mountain-Sea Vistas & Natural Shenzhen Life Festival’, and highlighted the importance of collective action in the effort to nurture our planet’s ecosystems.

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      Collaborating with MCF to promote ecological protection in the GBA

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      Building on the success of the two-year ‘Protecting Shenzhen Bay’ ecosystem restoration programme launched in 2020, we are proud to announce the ‘Green Bay Area Pioneer Action – Habitat Enhancement of Futian Mangrove Ecological Park’ project, which was launched in September 2024 in partnership with MCF. In this new phase of our partnership, we aim to promote ongoing local ecological protection in the GBA and enhance the health of the mangrove ecosystems by improving the habitats of local wetland organisms, especially in Futian Mangrove Ecological Park. 

      On 6 November 2024, an agreement to establish the world’s first International Mangrove Center was officially signed in Shenzhen. In parallel, the Shenzhen local government authorised the ‘Green and Beautiful Futian Special Fund’ initiative, which was launched by MCF. KPMG China was part of the first group of companies to support the initiative, and our continued collaboration with MCF reflects our shared vision of fostering biodiversity and creating a vibrant, sustainable environment for the region. Alongside habitat enhancement, the initiative also includes activities to raise environmental awareness among employees and the public. Furthermore, we plan to harness the experience gained from this project and apply it to other protected areas across the GBA.

      Joining hands for the planet: The impact of environmental volunteering

      Our people are key drivers of our sustainability efforts, and their participation is crucial to the success of our environmental initiatives.

      In 2024, we launched a new brand for planet-related volunteer opportunities – ‘Protect the future – Action for the planet’ (‘Protect the future’) – which aims to encourage more of our people to take part in nature-positive projects and contribute to the creation of a more harmonious balance between humans and nature. This initiative is also an important part of our effort to respond to China’s commitment to environmental conservation and green, low-carbon and high-quality development, as well as the goal of building a ‘Beautiful China’. From habitat restoration to community education on biodiversity, the ‘Protect the future’ initiative empowers our people to take direct action in protecting the planet.

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      Climate risk

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

      At KPMG, we are deeply committed to understanding and addressing the evolving risks and opportunities posed by climate change. 

      As an active participant in the Task Force on Climate-related Financial Disclosures (TCFD), KPMG closely aligns its work with industry best practices for transparent reporting on climate-related financial risks. On behalf of KPMG globally, KPMG International has published our ‘Climate Risk Report’ in line with TCFD recommendations. This report provides a detailed examination of our processes for identifying, evaluating and managing climate risks and opportunities. It highlights our disciplined approach to understanding how climate change impacts our operations, enabling us to respond proactively to both risks and emerging opportunities.

      With the TCFD’s integration into the International Financial Reporting Standards (IFRS) and the International Sustainability Standards Board (ISSB), we will continue to advance our disclosures. IFRS S2 Climate-related Disclosures underscores the critical importance of providing clear, high-quality information on climate-related risks – something we remain committed to delivering. Globally, KPMG also submits annual disclosures on our collective performance to CDP (formerly the Carbon Disclosure Project), further emphasising our commitment to transparency in climate-related performance.

      Report Hub

       

      Download our report to learn more about KPMG China's Our Impact Plan for this year and previous years.

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      Contact us

      Tracy Yang
      Tracy Yang

      Head of Corporate Affairs Senior Partner, Eastern and Western Region

      KPMG China

      Wilson Pang
      Wilson Pang

      Head of Our Impact Plan

      KPMG China

      Daisy Shen
      Daisy Shen

      Head of Environmental, Social and Governance (ESG)

      KPMG China

      For enquiries:

       

      oip.cn@kpmg.com

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