Becoming a Net Zero business

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Our planet

Becoming a Net Zero business

We've committed to becoming a Net Zero business by 2030.

We've set ambitious environmental targets, approved by the Science-Based Targets initiative, to support us in becoming Net Zero by 2030.

Our commitment to improving our environmental performance

Our 10-year environment strategy – which includes ambitious environmental targets approved by the Science-Based Targets initiative – puts us on course to become a Net Zero business across our entire value chain by 2030. We have made bold commitments to use 100% renewable energy across our estate, reduce the carbon impact of our supply chain by doubling the amount of suppliers we collaborate with, and find more sustainable ways for our people to travel. We are also supporting the UK government to reduce UK carbon emissions to Net Zero by 2050 as part of our Carbon Reduction Plan, which can be found in our report hub.

Our 2021 environmental performance

Our environmental performance in FY21 was significantly impacted by the COVID-19 pandemic. Due to government-imposed travel restrictions and as our colleagues continued to work predominantly from home, there was reduced reliance on business-related travel (scope 3), which caused a year-on-year reduction in our rail travel emissions, air travel emissions and car travel emissions. Low office occupation resulted in year-on-year reductions in our consumption of natural gas (scope 1), electricity (scope 2) and paper, but also led to an increase in our consumption of water, due to a requirement for regular flushing of facilities to avoid the risk of water-borne diseases from stagnant water.

With the pandemic re-shaping the way we live and work, we have to manage our environmental footprint differently and our people have a huge role to play. In response to COVID-19, we launched our award-winning Sustainability at Home campaign, to support our people in driving positive environmental action from home.

Find out more about our approach to engaging our people.

2021
2020
2019
2021 - Scope 1

These are emissions within our direct control and include those from:

  • Diesel, petrol and other fuel used by cars owned by KPMG or leased for six months or more;
  • natural gas used for space heating and hot water in our premises;

Conversion factors from the UK government’s Department for Business, Energy and Industrial Strategy (BEIS) have been used to calculate GHG emissions from other fuel sources such as diesel, petrol, natural gas as well as those from vehicles.

Due to how KPMG UK reports car expenses claims, it is not possible to distinguish if an expense claim submitted under the option of ‘Electric’ is fully electric or a hybrid vehicle. As a result, to ensure no understatement takes place due to an incorrect assumption, the decision has been made to calculate emissions for these vehicles on the principle that they are all hybrid vehicles. This has consequently involved using the hybrid conversion factor provided by BEIS for this calculation.

We are in the process of conducting a materiality review for our fugitive emissions, to ascertain if we will disclose these alongside our Scope 1 reporting moving forwards.

2021 - Scope 2

These are emissions from electricity purchased to power our offices.

We report two different Scope 2 emission values: one using a ‘location-based’ method and one using a ‘market-based’ method. The location-based method involves using an average emissions factor that relates to the grid on which energy consumption occurs. This usually relates to a country-level electricity emissions factor. The market-based method applies if the company has operations in any markets where there are Renewable Energy Guarantees of Origin (REGOs) or supplier-specific information are available. The method involves using an emissions factor that are specific to the electricity purchased. We have reported Scope 2 figures using both the location-based and market-based methodologies.

We use emission conversion factors as published by BEIS for each respective year of GHG reporting.

2021 - Scope 3

As part of developing our Science Based Target, we conducted an in-depth analysis of our Scope 3 emissions. These are indirect emissions that we do not directly control but that we may be able to influence.

Scope 3 emissions reporting include emissions from our suppliers in providing us with goods and services, as well as business travel, indirect supply of fuel (well to tank) and transmission and distribution of electricity.

For rail business travel, when a user submits an expense claim, there are instances of KPMG employees not assigning a ‘public transport type’ to their journey. To ensure no understatement takes place, where a transport field is blank, an assumption is made that this is a rail journey.

Purchased goods and services data is reported a year in arrears. Pre-pandemic, data was obtained through our suppliers responding to CDP Supply Chain module and extrapolated to cover our total supply chain based on supplier spend, using a spend methodology. This data was reported and validated in the CDP process.

Due to the impact of the global pandemic and resultant capacity issues for suppliers due to furlough arrangements, the number of allocated emissions data for FY20 decreased. As a result, we have undertaken a hybrid approach of using the FY19 actual allocated emissions data from responding suppliers – which represented 52% of total supplier spend for FY19.

For those suppliers that did not respond, we have used the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance published by UK Government, which includes 2009 emissions factors for Purchased Goods and Services categories. Non-responding suppliers have been assigned to appropriate categories, and the emissions factors are multiplied by FY20 spend for those suppliers to calculate total purchased Goods and Services emissions for FY20. This spend data is provided by our Procurement team.

We are comfortable to use these emissions factors given that they will likely have reduced over time due to the deflation of spend they were based upon, meaning we can be confident our totals are not understated. More recent Purchased Goods and Services emissions factors are not currently available within the public domain,

Our approach moving forwards will be to engage those suppliers responding to the CDP Supply Chain module and work with them to improve the quantity and accuracy of allocated emissions. This will ensure our Purchased Goods and Services disclosures are based on actual data. This will be practically achieved through webinars, focused sessions, detailed guides and supplier events in collaboration with CDP.

We will continue to review Scope 3 emissions reporting as reporting requirements evolve.

2020 - Scope 1

These are emissions within our direct control and include those from:

  • Diesel, petrol and other fuel used by cars owned by KPMG or leased for six months or more;
  • natural gas used for space heating and hot water in our premises;

Conversion factors from the UK government’s Department for Business, Energy and Industrial Strategy (BEIS) have been used to calculate GHG emissions from other fuel sources such as diesel, petrol, natural gas as well as those from vehicles.

Due to how KPMG UK reports car expenses claims, it is not possible to distinguish if an expense claim submitted under the option of ‘Electric’ is fully electric or a hybrid vehicle. As a result, to ensure no understatement takes place due to an incorrect assumption, the decision has been made to calculate emissions for these vehicles on the principle that they are all hybrid vehicles. This has consequently involved using the hybrid conversion factor provided by BEIS for this calculation.

We are in the process of conducting a materiality review for our fugitive emissions, to ascertain if we will disclose these alongside our Scope 1 reporting moving forwards.

2020 - Scope 2

These are emissions from electricity purchased to power our offices.

We report two different Scope 2 emission values: one using a ‘location-based’ method and one using a ‘market-based’ method. The location-based method involves using an average emissions factor that relates to the grid on which energy consumption occurs. This usually relates to a country-level electricity emissions factor. The market-based method applies if the company has operations in any markets where there are Renewable Energy Guarantees of Origin (REGOs) or supplier-specific information are available. The method involves using an emissions factor that are specific to the electricity purchased. We have reported Scope 2 figures using both the location-based and market-based methodologies.

We use emission conversion factors as published by BEIS for each respective year of GHG reporting.

2020 - Scope 3

As part of developing our Science Based Target, we conducted an in-depth analysis of our Scope 3 emissions. These are indirect emissions that we do not directly control but that we may be able to influence.

Scope 3 emissions reporting include emissions from our suppliers in providing us with goods and services, as well as business travel, indirect supply of fuel (well to tank) and transmission and distribution of electricity.

For rail business travel, when a user submits an expense claim, there are instances of KPMG employees not assigning a ‘public transport type’ to their journey. To ensure no understatement takes place, where a transport field is blank, an assumption is made that this is a rail journey.

Purchased goods and services data is reported a year in arrears. Pre-pandemic, data was obtained through our suppliers responding to CDP Supply Chain module and extrapolated to cover our total supply chain based on supplier spend, using a spend methodology. This data was reported and validated in the CDP process.

Due to the impact of the global pandemic and resultant capacity issues for suppliers due to furlough arrangements, the number of allocated emissions data for FY20 decreased. As a result, we have undertaken a hybrid approach of using the FY19 actual allocated emissions data from responding suppliers – which represented 52% of total supplier spend for FY19.

For those suppliers that did not respond, we have used the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance published by UK Government, which includes 2009 emissions factors for Purchased Goods and Services categories. Non-responding suppliers have been assigned to appropriate categories, and the emissions factors are multiplied by FY20 spend for those suppliers to calculate total purchased Goods and Services emissions for FY20. This spend data is provided by our Procurement team.

We are comfortable to use these emissions factors given that they will likely have reduced over time due to the deflation of spend they were based upon, meaning we can be confident our totals are not understated. More recent Purchased Goods and Services emissions factors are not currently available within the public domain,

Our approach moving forwards will be to engage those suppliers responding to the CDP Supply Chain module and work with them to improve the quantity and accuracy of allocated emissions. This will ensure our Purchased Goods and Services disclosures are based on actual data. This will be practically achieved through webinars, focused sessions, detailed guides and supplier events in collaboration with CDP.

We will continue to review Scope 3 emissions reporting as reporting requirements evolve.

2019 - Scope 1

These are emissions within our direct control and include those from:

  • Diesel, petrol and other fuel used by cars owned by KPMG or leased for six months or more;
  • natural gas used for space heating and hot water in our premises;

Conversion factors from the UK government’s Department for Business, Energy and Industrial Strategy (BEIS) have been used to calculate GHG emissions from other fuel sources such as diesel, petrol, natural gas as well as those from vehicles.

Due to how KPMG UK reports car expenses claims, it is not possible to distinguish if an expense claim submitted under the option of ‘Electric’ is fully electric or a hybrid vehicle. As a result, to ensure no understatement takes place due to an incorrect assumption, the decision has been made to calculate emissions for these vehicles on the principle that they are all hybrid vehicles. This has consequently involved using the hybrid conversion factor provided by BEIS for this calculation.

We are in the process of conducting a materiality review for our fugitive emissions, to ascertain if we will disclose these alongside our Scope 1 reporting moving forwards.

2019 - Scope 2

These are emissions from electricity purchased to power our offices.

We report two different Scope 2 emission values: one using a ‘location-based’ method and one using a ‘market-based’ method. The location-based method involves using an average emissions factor that relates to the grid on which energy consumption occurs. This usually relates to a country-level electricity emissions factor. The market-based method applies if the company has operations in any markets where there are Renewable Energy Guarantees of Origin (REGOs) or supplier-specific information are available. The method involves using an emissions factor that are specific to the electricity purchased. We have reported Scope 2 figures using both the location-based and market-based methodologies.

We use emission conversion factors as published by BEIS for each respective year of GHG reporting.

2019 - Scope 3

As part of developing our Science Based Target, we conducted an in-depth analysis of our Scope 3 emissions. These are indirect emissions that we do not directly control but that we may be able to influence.

Scope 3 emissions reporting include emissions from our suppliers in providing us with goods and services, as well as business travel, indirect supply of fuel (well to tank) and transmission and distribution of electricity.

For rail business travel, when a user submits an expense claim, there are instances of KPMG employees not assigning a ‘public transport type’ to their journey. To ensure no understatement takes place, where a transport field is blank, an assumption is made that this is a rail journey.

Purchased goods and services data is reported a year in arrears. Pre-pandemic, data was obtained through our suppliers responding to CDP Supply Chain module and extrapolated to cover our total supply chain based on supplier spend, using a spend methodology. This data was reported and validated in the CDP process.

Due to the impact of the global pandemic and resultant capacity issues for suppliers due to furlough arrangements, the number of allocated emissions data for FY20 decreased. As a result, we have undertaken a hybrid approach of using the FY19 actual allocated emissions data from responding suppliers – which represented 52% of total supplier spend for FY19.

For those suppliers that did not respond, we have used the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance published by UK Government, which includes 2009 emissions factors for Purchased Goods and Services categories. Non-responding suppliers have been assigned to appropriate categories, and the emissions factors are multiplied by FY20 spend for those suppliers to calculate total purchased Goods and Services emissions for FY20. This spend data is provided by our Procurement team.

We are comfortable to use these emissions factors given that they will likely have reduced over time due to the deflation of spend they were based upon, meaning we can be confident our totals are not understated. More recent Purchased Goods and Services emissions factors are not currently available within the public domain,

Our approach moving forwards will be to engage those suppliers responding to the CDP Supply Chain module and work with them to improve the quantity and accuracy of allocated emissions. This will ensure our Purchased Goods and Services disclosures are based on actual data. This will be practically achieved through webinars, focused sessions, detailed guides and supplier events in collaboration with CDP.

We will continue to review Scope 3 emissions reporting as reporting requirements evolve.