Client
Multinational grocery retailer
Industry
Consumer retail
Primary goal
Assurance over sustainability data
Technologies
KPMG Clara, our global smart audit platform
Make non-financial reporting credible
For a large, multinational grocery retailer, sustainability reporting depends on vast volumes of third-party supplier data, particularly for private label products. As regulatory scrutiny increased under the EU Corporate Sustainability Reporting Directive (CSRD), the company recognized that data quality was becoming increasingly important especially on supplier declarations which could undermine confidence in non-financial disclosures. As both financial statement auditor and ESG assurance provider, a KPMG member firm helped the retailer take greater control of its sustainability data — strengthening accuracy, accountability and confidence in their reporting.
Client transformation journey
- Before
- During
- After
New regulations, rising risk
The company already reported on a broad range of non-financial KPIs, including greenhouse gas emissions, plastics and nutritional content. Many of these disclosures, particularly for private label products, rely heavily on data provided by suppliers.
As regulatory scrutiny increased under the EU Corporate Sustainability Reporting Directive (CSRD), management recognized a growing risk: if supplier data was inaccurate or inconsistent, confidence in the company’s sustainability reporting could be undermined. Traditional approaches, focused largely on management prepared data, were unlikely to surface these risks early enough.
The challenge was clear — how to gain greater control over the accuracy of the third-party data used in sustainability disclosures.
Rigorous testing, clear accountability
A KPMG member firm as both the financial statement auditor and ESG assurance provider, enabled a more integrated perspective on financial and non-financial reporting.
For private label products, KPMG professionals worked with the client to expand independent laboratory testing. Sample sizes were increased and additional testing was introduced to validate nutritional values and to assess plastic data previously sourced from suppliers.
These independent checks revealed differences between supplier reported information and test results. Rather than treating this as a compliance issue, the KPMG member firm used the findings to challenge long standing assumptions around data ownership and internal materiality thresholds. Discussions with management reinforced that accountability for ESG KPIs ultimately rests with the company, and that materiality thresholds should evolve as data quality and analytical capabilities improve.
Stronger controls, greater confidence
The retailer emerged with more than an assurance conclusion. Going through a robust assurance process helped the company strengthen controls over its private label product KPIs, improve the accuracy of non-financial data and embed clearer accountability for sustainability reporting.
The retailer gained greater confidence over its sustainability disclosures. Management also recognized the value of an assurance approach that delivered insight and improvement, positioning the organization for future reporting requirements under CSRD and beyond.
The KPMG member firm continued to support the client in navigating regulatory complexity across markets, by strengthening disclosures around methodology choices and reliance on third-party data.
How we make the difference
By combining professional skepticism, advanced analytical techniques and deep regulatory knowledge, KPMG helps organizations strengthen the reliability of non-financial data that underpins sustainability reporting.
As regulatory requirements grow in volume and complexity, independent assurance plays a critical role in reinforcing confidence in reported information relied on by capital markets and other stakeholders.
Please reach out to us to learn how we can support you through strengthening accuracy, accountability and confidence in your reporting.
KPMG. Make the Difference.
Meet the team
Make the Difference with KPMG
At KPMG, what sets us apart isn't just what we do, it's how we do it.
We’re leveraging deep expertise and innovative technology to turn insights into opportunity and move business and innovation forward, placing human connections at the center.
Together, we make the difference.