KPMG released its U.S.
Last year, the Big Four firm's
"In this year's plan, KPMG has presented a transparent update on some of the most critical challenges and opportunities concerning its people, planet, prosperity, and governance all anchored by the fundamental values of the business," said Rob Fisher, KPMG ESG leader in the United States.
Key points in the report include:
- A significant increase in promotions and new hires for Black and Latinx talent;
- A 50% reduction in Scope 1 greenhouse gas emissions with a renewed commitment toward a net-zero carbon emission;
- Millions of dollars raised by the KPMG U.S. Foundation to support underserved communities; and,
- A 3% drop in turnover.
People
To pursue the Accelerate 2025 goal of expanding its Black and Latinx workforce by 50%, KPMG expanded its network of historically Black colleges and universities and Hispanic-serving institutions to assist in recruitment. Between 2020 and 2022, the KPMG Black and Latinx workforces grew from 6% to 7% and from 7% to 8%, respectively. Additionally, over two-thirds of the 2023 promotion class and more than half of its new U.S. partners are from underrepresented groups.
The firm also worked to increase the representation of women and people of color in managing roles, as well as members of the LGBTQ+ community, military veterans and individuals with disabilities. Since 2020, the firm has supported over 412 students identifying with these underrepresented groups via its
In 2022, the report said, 48.5% of KPMG new joiners were from underrepresented racial groups and 45.7% were women.
The report also featured the KPMG Career Mobility program, a confidential internal resource designed to help employees "identify, navigate, and secure new career opportunities" through a strategy called Flex with Purpose for hybrid teams.
Currently, 83% of partners and employees report that they have a meaningful say in where they work, and the firm's voluntary turnover rate was 16.8% for FY 2022, three percentage points lower than in 2021.
For 2022, KPMG reported adding several benefits to create a Total Rewards package, which includes increasing parental leave to 12 weeks to bond, as well three additional weeks of paid caregiver leave.
Participation in KPMG business resource groups such as Somos KPMG or Asian Pacific Islanders has grown 38% since 2020. The report explained that these cross-functional associations of partners and employees aim to provide a supportive space for people to find access to mentorship, community spaces, and ally networks.
Planet
"We have committed to ambitious, measurable goals to inform and monitor our efforts across critical issues including achieving net-zero carbon emissions by 2030 while also achieving a 50% reduction of direct and indirect greenhouse gas emissions," said Fisher. "At the beginning of FY22, we became the first of the Big Four accounting firms to set an internal price on carbon, leveraging this price to operationalize sustainable behavior, fund our green investments, and account for our carbon impact."
In 2022, KPMG managed to slightly reduce its carbon emissions after a great increase the year before, as well as reducing its Scope 1 emissions — which come from sources that are controlled by the organization — by half. The firm aims to continue decarbonizing its operations through technological deployment, better monitoring and measurement, updated travel policies, and factoring the cost of carbon into business decisions.
Additionally, it is seeking to reduce its direct and indirect greenhouse gas emissions, such as those resulting from travel, by 50% by 2030. Between 2016 and 2020, the firm has also been sourcing 100% of its energy from renewable sources through the purchase of green, e-certified renewable energy certificates.
In terms of real estate footprint, KPMG has seen a 24% reduction in emissions from electricity usage since 2019 thanks to its Flex with Purpose initiative, as well as plans to install solar panels at its innovation center, the KPMG Lakehouse in Orlando, Florida.
Prosperity
In the report, KPMG and KPMG U.S. Foundation renewed their $125 million five-year commitment to put employee's skills and experience to the service of their communities and the challenges they face. Through initiatives such as Community Impact Day and the $1.9 million they contributed to markets, the firm wants to continue supporting organizations, programs, and initiatives that advance equity and access among underrepresented groups.
The report also discussed the impact of KPMG educational programs, such as the nonprofit Urban Schools Human Capital Academy, which addresses human capital needs specific to urban school districts in terms of resources and recruitment, especially in areas with a high proportion of communities of color. KPMG's nonprofit board service program was also put in the spotlight: It connects professionals with community services opportunities and reported 26,300 hours of services in 2022.
"For my state's Special Olympics program, I serve as a board member, secretary of the executive committee, and chair of the development committee while helping organize local events," said manager Briana Haines, in the report. "My experience with Special Olympics is one of the most fulfilling of my life, and I have KPMG to thank for it. I feel lucky to work for a firm that really walks the talk and gives me so many opportunities to put what I stand for into practice."
When it comes to education, employment and leadership, the report highlighted the firm's goal to economically empower 10 million disadvantaged young people by 2030. In 2022, the KPMG Foundation offered more than $15 million in funds to organizations, including $1.9 million in funding towards DEI efforts and access to health and wellness.
Principles of governance
In this section, KPMG announced its dedication to maintain high ethical standards in professional services by fostering a culture of transparency, objectivity and independence. By continuing to enhance a governance model "centered on integrity" and find new ways to improve audit quality, the firm said it wanted to create an "environment of honest conversations" around DEI, risk management and sustainability.
To do so, the firm requires all its employees to go through 12 hours of ethics and integrity training annually based on a research-oriented curriculum. In addition, KPMG staff have access to an ethical decision-making framework, interlinked with other courses such as the firm's code of conduct or unconscious bias trainings, as well as an ethics and compliance hotline that enables them to make anonymous reports.
"Trusted relationships matter, and integrity is the core of how we conduct our business," said Fisher. "Our responsibility to protect the capital markets and deep commitment to independence and objectivity means bringing our culture of integrity across all our functions, teams, and engagements, and keeping us moving forward."
