KPMG’s Global Climate Response was launched in 2008 with the aim of significantly reducing KPMG’s environmental impacts across KPMG member firms globally. Since 2010, we’ve reduced net emissions per full-time equivalent (FTE) by 24 percent. Notably, KPMG’s total “gross” greenhouse gas emissions are now beginning to lower even with significant employee and revenue growth. KPMG member firms also continue to recognize the benefits of procuring renewable energy, with 42 percent of our purchased electricity in 2017 coming from renewable sources. The move towards ‘green buildings’ and investments in energy efficiency has resulted in a 17 percent decrease in energy use (kWh) per square meter.
Now in its third phase, KPMG’s Global Climate Response aims to reduce environmental impact across the global network by a further emission reduction target of 10 percent net per full-time equivalent between 2016–2020. To meet our climate targets, phase 3 also includes a global renewable energy target of 60 percent of purchased electricity to come from renewable sources by 2020.
Through the GCR, KPMG member firms are also committed to reducing their impact on the environment, addressing local environmental challenges and working with clients to advance environmental sustainability.
COP23, the UN Climate Conference, took place between 6 to 17 November 2017 in Bonn, Germany, and was presided over by Fiji.
COP23 is the second UN Climate Conference after the historic 2015 conference in Paris (COP21) where almost 200 countries committed to reduce their own carbon emissions in order to halt global warming and create a carbon-neutral world. Nations of the world meet to advance the aims and ambitions of the Paris Agreement and achieve progress on its implementation guidelines.
KPMG was proud to support COP23 by collaborating with the UN Climate Secretariat. Together we presented UN Climate Talks LIVE: a window into the global social media conversation on COP23.
KPMG recognizes that climate change will have significant impacts across many business sectors and we support stronger disclosures of climate-related risks and opportunities. Such disclosures are an important step in using market forces to drive more efficient allocation of capital and the transition to a low-carbon economy. KPMG participated in the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) and we believe climate-related risks, like other risks, should be an integral part of our reporting.
We have incorporated our disclosures in KPMG's International Annual Review and below:
Governance - climate-related risks and opportunities
Since 2010, the Global Board of KPMG International has received an annual update on KPMG's GCR, detailing progress in reducing emissions. In light of the TCFD recommendations, the update has extended to include potential risks and opportunities on climate-related issues for KPMG member firms. In addition, we have developed guidance for KPMG member firms to share with clients to help them better consider the financial impacts of climate change, including the challenges and opportunities.
Climate-related risks and opportunities
We believe KPMG's biggest contribution is through member firms helping clients in understanding the potential effects of climate change, in determining the impacts of certain climate scenarios, in establishing management, reporting and monitoring systems and in appropriate disclosure of the financial risks of climate change.
We also anticipate potential new services to be an opportunity for member firms to support clients. While these climate-related services will be very relevant for the future, the financial results from new services will likely be limited in comparison to our combined global revenues.
As a result of our review of the potential impact of climate-related risks and opportunities, we have considered a number of aspects as being potentially material to the network. These include disruption to operations, reputational risks and operational improvements, which are being managed through member firm facilities and IT departments as well as efforts to reduce impacts on climate change.
We report carbon emissions annually (see below) and provide additional climate-related disclosures in our annual response to the CDP (formerly known as the Carbon Disclosure Project).