Always act with a clear purpose.
Lead the profession in audit quality.
Drive a responsible tax practice.
We aim to act with clear purpose at all times, inspiring confidence and empowering change, not just for our people and clients, but for society at large. By living our Values — Integrity, Courage, Excellence, Together, For Better — and considering the impact of our work from the perspective of a broad range of stakeholders, we believe we're driving purposeful business, fostering prosperity on as broad a scale as possible and helping to address the biggest issues facing our planet. This is true across all areas of our business.
Healthcare technology giant, Philips, has a bold ambition to improve the lives of 2.5 billion people by 2030 — including 400 million in underserved communities. Acting responsibly towards the planet and society is in the company's DNA, and it aims to embed its purpose further into every part of the organization, showing its people how their daily activities drive the business and make the world a better place.
A vital step in this journey is to bring together financial and non-financial performance indicators, incentives and rewards. KPMG has been working with Philips' leadership, to build a framework for making decisions based upon this broader definition of value, including performance dashboards, visualized as a compass, to highlight progress.
We helped them test the approach in key markets and businesses, refining the framework as we went along. The company is now integrating purpose-related targets and metrics into management decision-making, and cascading this to people at all levels of the organization — which has increased employee engagement. By reimagining the definition of 'success' in business, Philips should be in an even stronger position to gain a competitive edge by creating value for all its stakeholders.
Since 2014, KPMG in Taiwan has been engaged with the local government to put social procurement at the heart of capitalism. Taiwan's Social Innovation Action Plan (2018 to 2022) aims to create an ecosystem for social enterprises to nurture and grow small or medium-sized enterprises into successful — even publicly listed — companies. KPMG supports the plan by bringing in the private sector to support core strategies such as legal adaptation, innovative platforms, fundraising and incubation. All of which helps to drive a positive environmental and social impact, as well as revenue growth, job creation and business innovation.
We bring integrity to financial reporting and help ensure the successful working of the markets, by giving investors the confidence in the information they need to make key decisions. That's why we're committed to leading the profession in audit quality. And it's why accountability for audit quality starts at the very top of our organization, with every KPMG leader responsible for continually raising the bar for quality, integrity and public trust. We are making significant investments to drive consistency and quality across our global audit practices and closely monitor audit quality across all KPMG firms.
The Global Audit Quality Committee's responsibility is to strive for globally consistent audit quality. We have a Global Audit Quality Monitoring Group — that we are growing in size and scope — that inspects audits around the world, and a Global Compliance Review Program that reviews KPMG firms' commitment to quality and compliance with KPMG policies. Getting audit quality right is what we are focused on to fulfill our role to society, serve our markets and build public trust. For more information on our approach to audit quality, see the Global Transparency Report 2020.
We recognize that as the world becomes more interconnected and enterprises respond to the demand for greater transparency, the discussion intensifies about who pays tax and where and when they pay it. We're responding to this need with the development and implementation of our Global Responsible Tax Principles and through our Global Responsible Tax Project, which brings diverse stakeholders to the table to engage in a sustained and robust debate about the issues shaping globalization and taxation.
KPMG Australia developed a comprehensive electricity infrastructure roadmap for Australia's New South Wales (NSW) government, to support the state's transition from coal-based generation to clean, renewable resources. Being Australia's most populous state, NSW represents 33 percent of Australia's economy.1 This energy transition represents a once-in-a-generation opportunity that "could set NSW up to be a global energy superpower".2
Working with the government, KPMG Australia crafted a policy designed to work for energy users, investors and communities and which is designed to attract up to AU$32 billion in private investment in regional energy infrastructure by 2030; support over 6,300 construction and 2,800 ongoing jobs in 2030, mostly in regional NSW; save around AU$130 a year on the average NSW household electricity bill and AU$430 a year on the average small business electricity bill between 2023-2040; and contribute to the NSW Government's Net Zero Plan by delivering 90 million tonnes of reduced carbon emissions by 2030.
1 Source: NSW Government
2 Source: Energy NSW
The Responsible Tax Project commenced a number of years ago and acknowledged that as a member of the Big 4, we are a stakeholder in the tax system and need to engage in the debate with other stakeholders. The project has brought together a diverse range of stakeholders to debate and discuss issues as and when they emerge.
When COVID-19 seriously impacted people's lives and the world economy, tax systems were on the front lines in many jurisdictions as a tool for swift, short-term support, and a lever for longer-term recovery. As the pandemic continued and certainty remained elusive, there was a growing need for multi-stakeholder discussions on emerging tax issues. Against this backdrop, KPMG continued its series of Responsible Tax roundtables by inviting taxpayers, academia, media, government, global bodies, politicians, non-governmental organizations and tax professionals to virtual roundtable discussions, to share their perspectives and inform thinking on diverse tax issues and responsible tax behavior. These kept the global Responsible Tax community connected, and helped build an understanding of the immediate, medium and long-term responses to COVID-19. Participants shared perspectives on how tax policy could support a post-COVID-19 recovery, and the potential challenges and opportunities of various approaches. In December 2020, KPMG launched a new publication called Tax policy considerations in the wake of COVID-19, using insight from these roundtable events.
Our focus on responsible tax also encompasses our advice to clients, our engagement with regulators and other stakeholders, the arrangements of each KPMG firm, and our respective partners' tax affairs. We are committed to acting lawfully and with integrity, to provide high-quality advice and build mutually trusting relations with tax authorities. This is consistent with KPMG's Values and Global Code of Conduct. Read the full KPMG Principles for a Responsible Tax Practice.
In 2020, we launched KPMG IMPACT, which brings together our capabilities across the globe to help our clients address the biggest issues facing our planet. Through KPMG IMPACT, we support our clients to deliver growth with purpose and support the achievement of the Sustainable Development Goals (SDGs), so all our communities can thrive and prosper.
To deliver higher audit quality, consistency and accountability, our Global Board committed all KPMG firms to a common set of values, standards and service quality expectations. A new Global Quality Framework outlines how every partner and employee contributes to delivering high-quality audits. And through our smart audit platform, KPMG Clara, we're embedding innovative technology and tools for engagement teams and are rolling this out across the globe. Finally, across our global organization, we are building on our sound quality foundations, enabling KPMG firms' compliance with the new quality management standard (ISQM 1), expected to be effective from December 2022.
We continue to focus on our Global Tax Principles which encapsulate our commitment to a responsible tax practice and supplement the guidance of the professional bodies by which we are governed. And we continue to drive the debate around responsible tax with diverse stakeholders, building on our KPMG Global Responsible Tax Project, which has facilitated this debate over the past 4 years.
Our Impact Plan represents the collective environmental, social and governance commitments of independent KPMG firms, affiliated with KPMG International Limited. The data represented in Our Impact Plan is aggregated data from KPMG firms for the 12 months to 30 September 2020 unless stated otherwise. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. Where the term “ KPMG,” “ firm,” “ we” or similar references are used without definition, they are meant to collectively refer to KPMG International Limited and the independent KPMG firms.