Materiality

Our approach to materiality

We’re committed to building a better KPMG. One way we’re doing that is through our annual materiality assessment, which helps to focus our attention and resources where we can make the largest impact. KPMG International’s materiality assessment is a key input to defining our ESG strategy and guiding our reporting.

This year for the first time, we are reporting with reference to the Global Reporting Initiative (GRI) guidance and have used GRI 3 to help shape our approach to our materiality assessment refresh. We re-examined the list of material topics shared in last year’s Our Impact Plan progress update, taking into consideration recent geopolitical events and changes in our stakeholder and business priorities. Leveraging best practice methodology, and with the support of KPMG’s ESG Advisory practice, we have taken a four-step approach:

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Step

What we did

Understanding KPMG’s context

Identifying actual and potential impacts

Assess the significance of the impacts

Prioritize the most important impacts for strategic focus and reporting

Understanding KPMG’s context

Gathered data about KPMG International and our global organization:

Who we are, including our Values.
What we do and who our clients are.
How we create value and impact.

Identifying actual and potential impacts

Identified the ways in which KPMG International and our global organization impacts the economy, the environment and society as a whole, and identified whether the impacts are positive or negative, and actual or potential.

Assess the significance of the impacts

Gathered internal and external stakeholder insights to assess the likelihood and significance of the identified impacts. The assessment factored in scale, scope, irremediability and likelihood.

Prioritize the most important impacts for strategic focus and reporting

Identified the highest priority impacts and shared the results with relevant Our Impact Plan leaders.

Engaging with our stakeholders is a central element of Our Impact Plan approach. We welcome the diverse opinions and contributions of different stakeholder groups, covering all aspects of our business and our geographical footprint, including:

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C-suite — clients and potential clients

Data from independent trust research conducted annually (May to July 2023) in our eight key markets (Australia, Canada, China, France, Germany, Japan, the UK and the US).

Other external stakeholders

Data from independent trust research conducted annually (May to July 2023), including industry and trade associations, academics, non-governmental organizations and advocacy groups, multilateral organizations, business analysts and investors, and the informed public.

Our People

Data from the Employee Engagement Index and Employee Trust Drivers from our Global People Survey.

Management

Data on our most significant business risks as prioritized in our Enterprise Risk Management program using our proprietary Dynamic Risk Assessment methodology, as well as a management questionnaire completed by Our Impact Plan community from across the KPMG network.

Peers

Review of the topics considered material by our KPMG firms and our international competitors.

Regulators and standard setters

Review of the guidance available from the WEF IBC stakeholder capital metrics, GRI, ISSB and the draft ESRS standards.

Our assessment exercise found:

All the material topics from FY22 continue to remain relevant for FY23.
One of the topics, Environmental Sustainability, was identified as covering a fairly wide range of impacts with varying significance — therefore, for FY23 it has been split into two topics, Climate Change and Biodiversity & Sustainable Operations.
Two new topics were also identified — Responsible Supply Chain and Public Policy Engagement.
As we refined the methodology in FY23, no topics have been identified as having increased or decreased in significance.

At KPMG International, we’re committed to continuous improvement, refining our methodology as well as reporting on our material topics. We anticipate that our reporting will, over time, transition to align with the new standards set by the International 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 reporting with reference to the GRI and against the United Nations (UN) Global Compact Principles.

KPMG’s material topics

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Governance

People

Planet

Prosperity

1. Ethics, integrity and independence

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 and accountable for their conduct.

2. Transparency and accountability

All KPMG firms are committed to our shared Purpose and Values, professional standards and service quality expectations. Our clear governance and practice management standards help ensure we’re driving consistency and accountability across our entire global organization.

Acting transparently with accountability and integrity

3. Relevant, quality services in the public interest

We have a fundamental commitment to serve the public interest and build trust. We do this by leading in audit quality, driving responsible tax practices and advising clients on ways in which they can transform their business to help create sustainable value — embedding ESG into client services.

4. Information protection

We have policies, processes and controls in place that address confidentiality, information security and data privacy. We provide and mandate 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 in systems to help keep information safe and secure.

Purposeful business: Client confidentiality, information security and data privacy

5. Purpose, culture and values

We’re led by our Purpose — to inspire confidence and empower change — and driven by our Values in creating a caring and inclusive culture that provides our people with opportunities to make an impact, solve challenges and tap into their passion for doing work that matters.

Purposeful business: Our Values and what we stand for

6. Public policy engagement

KPMG participates in shaping policy discussions and advocating for meaningful change that allows business, government and society to prosper together.

Purposeful business: Public policy engagement, protecting trust

7. Responsible supply chain

The global depth, breadth and scale of KPMG’s supply chain has a substantial impact on our ESG agenda and we proactively manage it through our dedicated team of procurement specialists, based in a number of key locations across the globe. We have an ongoing program to drive a more responsible and sustainable supply chain that includes: providing resources to support responsible sourcing decisions, collaborating across geographies to share best practice, driving consistency, and leveraging the knowledge and expertise of our own subject—matter experts’ knowledge, particularly in decarbonization and human rights across the supply chain.

Through our global network of supply chain and procurement advisory professionals, we help clients to improve the sustainability of their operations. By bringing together cutting-edge thinking on sustainable supply chain management with leading digital solutions and tools, we help manage and improve the wider impact of supply chains across the globe.

1. Talent attraction, development and retention

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

2. Inclusion, diversity and equity (IDE)

Unique experiences and perspectives enhance our global organization and help create the drive for a fairer, more equitable society that includes everyone. We’re committed to embedding and improving IDE — encouraging people to come as they are. Drawing on the experience and capabilities of our People and Change professionals, we also support our clients in meeting their own commitments and targets and, by doing this, help to drive wider impact across the business environment.

3. Health, well-being, workload and job security

To create opportunities for themselves and others, our people should be at their best, both physically and mentally. Our responsibility is to help our people be healthy and to feel secure and supported through the challenges they may face in their personal and professional lives — enabling them to thrive.

Health and well-being

1. Climate change

We’re committed to driving a culture of sustainable practices within our global organization, across our entire business ecosystem including our suppliers, alliance partners, and through the work that KPMG firms do for clients across the globe. By taking a wider outlook, we aim to drive impact beyond just the boundaries of our business, and help to ensure a healthy planet for generations to come.

2. Biodiversity and sustainable operations

KPMG is actively engaged in fostering a transition toward nature positivity. We are dedicated to influencing positive change in how businesses around the world comprehend and manage their relationship with nature. We are also committed to improving the sustainability of both our own operations and those of our clients.

1. Financial, operational and brand resilience

Through a diverse and multi-disciplinary 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

2. Technology and innovation

Our continual investment in technology and innovation, in collaboration with our alliance partners and other stakeholders, helps ensure that we’re keeping up with the accelerating pace of technological change, positioning us for future success so we can meet stakeholder expectations and achieve our collective growth objectives. We work side-by-side with clients to help them embrace technological change, improve organizational efficiency, drive increased return on investment and enrich the skills required for a digital world.

3. 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, employment and entrepreneurship for youth and under-represented populations.

A significant community investment

Report hub

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

Contact us

Jane Lawrie

Global Head of Corporate Affairs

KPMG International

Roisin Murphy

Head of Global Sustainability (Our Impact Plan)

KPMG International

John McCalla-Leacy

Head of Global ESG

KPMG International

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

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

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

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

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

Materiality

Understanding KPMG’s context

Identifying actual and potential impacts

Assess the significance of the impacts