At KPMG, we empower organizations to thrive in a low-carbon economy. As climate change becomes an urgent challenge, we are committed to helping businesses navigate the complexity of decarbonization and seize the opportunities it presents.
We combine expertise in strategy, risk, technology, reporting, and assurance with sustainability to enable organizations to effectively manage risks and embrace sustainable business operations. From identifying and addressing climate risks to quantifying opportunities, developing robust decarbonization strategies, enhancing reporting capabilities, and providing external validation. We offer a holistic support throughout your sustainability journey.
Partner with us to shape a sustainable and resilient future through in-depth knowledge and experience to accelerate implementation and build stakeholder confidence.
The impact of climate change on businesses
The transition to a low carbon future is riddled with challenges, and many companies struggle to find answers to key questions such as:
- How can we effectively identify, quantify, and prioritize climate-related risks and opportunities across our value chain?
- What strategies and initiatives should we develop to successfully decarbonize our operations and achieve our sustainability goals?
- How can we gain an objective perspective and external validation to strengthen our decarbonization strategies and align with industry standards?
Are these questions similar to the ones your company currently struggles to answer?
How KPMG supports their clients
1. Climate risk and opportunity identification & quantification
KPMG’s process to identify and quantify climate-related risks and opportunities
We help you identify and evaluate the risks and opportunities associated with the transition to a low-carbon economy. Our experts analyze your value chain, regulatory landscape, market dynamics and emerging trends to uncover potential risks.
Simultaneously, we identify strategic opportunities for innovation, cost reduction and competitive advantage, enabling you to make informed decisions and prioritize your decarbonization efforts. With our tool "Climate IQ", we combine market data to identify and quantify risks and opportunities based on a market-proven concept.
Climate risk is a strategic resilience issue that goes beyond corporate responsibility
2. Baseline & GHG Inventory Assessment
The foundation for sound decision-making on climate action is reliable data. We begin by conducting a rigorous assessment of your organization's greenhouse gas (GHG) emissions and establishing a comprehensive baseline. Our expert team utilizes novel tools and proven methodologies to:
- Identify emission sources
- Quantify their impact
- Benchmark your performance against industry peers
We distill the complexity of GHG accounting, covering Scopes 1, 2, and 3 with expert guidance on the latest standards and best practices, including, for example, the PCAF Standards, the Global Greenhouse Gas Accounting Standard for the Financial Industry.
This assessment serves as a foundation for future strategic decisions and enables you to measure progress towards your decarbonization goals.
3. Decarbonization and transition pathway
Our team of experts collaborates closely with organizations to develop tailored decarbonization strategies, implement sustainable practices, and identify growth opportunities in a greener future.
Recognizing the pressing urgency and intricate nature of the decarbonization journey, our specialized services are meticulously crafted to guide executives through strategic pathways.
Our services are geared to empower companies to not only diminish their carbon footprint but also fortify their resilience, fostering a capacity to thrive in a world increasingly prioritizing sustainability.
By leveraging our expertise, organizations can navigate the complexities of this transition, not just as a responsibility but as an opportunity to create enduring value in a rapidly evolving landscape.
4. Reporting & Assurance
Transparency and accountability are key factors in the decarbonization journey. Our experts provide guidance in developing accurate and credible reporting frameworks aligned with international standards such as the Task Force on Climate-related Financial Disclosures (TCFD), European Sustainability Reporting Standards (ESRS), International Sustainability Standards Board (ISSB) or GHG Protocol.
We help you enhance your reporting capabilities, ensuring that your disclosures effectively communicate your climate-related risks, opportunities and progress to stakeholders, investors, and customers.
Additionally, we offer assurance services to validate your reported data and processes, installing trust and confidence in your sustainability performance.
Your benefits
How do you benefit from engaging with our Climate, Nature and Decarbonization practice? The benefits lie in the expertise, experience and comprehensive support that such a partnership provides.
Here are the reasons why:
Specialized Knowledge and Expertise
Our focused expertise in decarbonization and sustainability equips us with in-depth knowledge and a high level of proficiency in this domain. We have a multidisciplinary approach and a thorough understanding of the complex challenges, emerging trends and best practices associated with environmental sustainability.
Collaborating with KPMG opens the door for your organization to access our specialized knowledge, allowing you to harness it for the creation and execution of targeted strategies aligned with your unique requirements. This partnership guarantees that your company can make well-informed decisions grounded in the latest industry insights, benefiting from the wealth of experience we've accumulated across diverse projects and sectors.
Comprehensive Approach and Support
Addressing decarbonization and sustainability requires a comprehensive and integrated approach that spans across an organization value chain. KPMG can help companies assess their current performance, identify risks and opportunities, develop strategies, implement initiatives and advance reporting and assurance practices.
This end-to-end support ensures that companies have a cohesive and well-executed decarbonization roadmap, minimizing the risk of missing critical components or encountering implementation challenges. KPMG has access to a broad network of alliances from Microsoft to SAP, enabling companies to leverage additional expertise, technologies, and resources when needed.
Objective Perspective and External Validation
Engaging with KPMG brings an external and objective perspective to the decarbonization efforts of a company. We can conduct independent assessments, challenge existing assumptions and provide unbiased recommendations. This external validation helps companies avoid potential blind spots and ensures that their decarbonization strategies are robust and well-aligned with industry standards and best practices.
Moreover, we contribute valuable benchmarking insights by comparing a company's performance and progress against its peers, making it possible for companies to understand their relative position and identify areas for improvement.
Accelerated Learning and Implementation
Working with KPMG, we aim to accelerate your learning curve when embarking on the decarbonization journey. We bring experience gained from working on a range of industries and projects, enabling us to identify potential pitfalls, navigate complex challenges and share proven methodologies and tools. This expedites the development and implementation of effective strategies, saving time and resources for companies.
Additionally, KPMG provides trainings and capacity building to enhance internal capabilities, helping companies to sustain their decarbonization efforts beyond the engagement with us.
Stakeholder Confidence and Reputation Building
Collaborating with us enhances a company's credibility and reputation among stakeholders, including investors, customers, employees and regulators. Assurance of your report, GHG emissions, or parts thereof, signals a commitment to quality and emphasizes that efforts are guided by expertise and best practices. This can result in increased stakeholder confidence, improved brand reputation and strengthened relationships with key stakeholders.
KPMG can also support companies in effectively communicating their sustainability achievements and progress, enhancing transparency and trust in the organization's environmental performance.
Why KPMG
By partnering with KPMG's Climate, Nature and Decarbonization practice, you gain access to a global network of experts who possess a deep understanding of the interplay between climate or nature with stakeholders and the organizational needs. We can accompany you along every step of your company's Climate, Nature and Decarbonization journey with tailored solutions depending on your needs and maturity.
Our comprehensive services range from in-depth GHG accounting and methodology, to target setting and defining a robust implement and climate transition plans. Our multi-disciplinary teams provide strategic insights, technical expertise and innovative thinking to support your organization's transition towards a sustainable, low-carbon future. Together, we can shape a world where environmental stewardship and economic success go hand in hand.
Contact our ESG experts
The transformative impacts of climate change are reshaping the business landscape. It is imperative that companies respond promptly and adapt to these challenges to ensure that they progress towards a stronger sustainability performance and safeguard profitability. Connect with us now to collaborate on empowering your business with the essential skills needed to establish a successful climate and nature strategy for the future. Take action today!
Get in touch with us for more information and to explore how our services can drive your organization's decarbonization efforts.
