KPMG U.S. carbon emissions rose 77% in 2023

KPMG U.S.'s greenhouse gas emissions jumped in 2023.

The Big Four firm produced nearly 458,000 metric tons in gross carbon emissions last year, according to its "2024 KPMG U.S. Impact Plan" report, published Monday. This figure is a 77% increase from 2022, when it reported roughly 258,000 metric tons. The report attributes this rise to the return of business travel since the COVID-19 pandemic. 

"As we have moved back to a hybrid model, welcoming our people back into our offices and at Lakehouse, we have seen our emissions rise, as anticipated," the report reads. "As part of our commitment to lower our emissions, we are taking measures to manage business travel. Through our travel policy, we monitor the purpose of travel and its duration to align with our firmwide emissions reduction strategy, focusing on areas where we can have the largest tangible impact."

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The firm is using an internal carbon price tool, which charges $15 per metric ton of emissions to the business unit when travel occurs, to help control emissions from business travel.

As part of its goal to reach net zero, KPMG International aims to reduce its emissions by 50% by 2030 compared with its 2019 base year. So far, KMPG International has decreased its gross emissions by 22%, according to its global impact plan, and KPMG U.S. has reduced its gross emissions by 41%.

KPMG U.S.'s Scope 1 emissions — those produced directly by the firm — decreased by 19% year-over-year and decreased 58% since the base year. However, its Scope 2 emissions — those the firm causes indirectly through the energy it purchases and uses — increased 10% year-over-year, but still represented a 16% decrease since the base year.

Scope 3 emissions — those created across the firm's value chain — continue to be the U.S. firm's greatest source of emissions. In 2023, it produced approximately 440,300 metric tons, up 82% from 241,000 metric tons the prior year, but down 42% since the base year. To address this, the firm is encouraging its suppliers to participate in the CDP Supply Chain program to disclose their carbon footprint data in order to determine areas where it can reduce emissions.

KPMG U.S. also installed 1,700 solar panels at its Lakehouse headquarters in Orlando, Florida, and it plans to combine its three New York City offices into a single, more energy-efficient headquarters in Manhattan.

The report also covers the firm's progress across people, prosperity, and principles of governance.