Big Four firm KPMG announced Tuesday it is committing $1.5 billion over the next three years to focus on environmental, social and governance issues, training and solutions.
KPMG says the move will work to support the firm's clients "in making a positive difference," as well as the firm's "responsibility to improve its impact on the world and the ESG commitments outlined in KPMG: Our Impact Plan."
“How you grow matters, and what worked for us and other businesses in the past will not work in the future,” said KPMG global chairman and CEO Bill Thomas in a statement. “The world faces crises on multiple fronts, which is why we’re putting the environmental, social and governance agenda at the heart of everything we do. ESG will be the watermark running through our global organization, from empowering our people to become agents of positive change, to the services with our clients and our partnerships with critical stakeholders. KPMG has the global scale, expertise, technology and relationships that give us the ability and responsibility to use our position to provide solutions and services to overcome the challenges facing our planet and society.”
The firm said the $1.5 billion investment will primarily focus on training, expansion of its global workforce, development of new technologies, and driving action through partnerships, alliances and advocacy.
KPMG said the new ESG strategy will focus on five main areas:
1. Solutions: Five newly dedicated "hubs" will be established to "provide world-class expertise and solutions on key ESG issues," including global decarbonization and ESG advisory. Three KPMG Regional ESG Hubs will also be established in Europe, Asia and the Americas to give clients access to "insights and expertise" across the ESG agenda.
The firm will also ESG solutions and technologies, including Climate IQ — a digital tool that helps clients find climate change issues. An expansion in workforce, both for ESG advisory work and to provide assurance on ESG disclosures, will also occur. Lastly, KPMG will develop its proprietary audit workflow technology to enable delivery of ESG assurance with the same quality and rigor that KPMG firms apply to financial audit work.
2. Talent: ESG training will be provided to all 227,000 people at KPMG. As part of this training, KPMG will work with the University of Cambridge Judge Business School and NYU Stern Executive Education.
3. Supporting developing nations: The firm will launch "KPMG Emerging Markets Accelerators" across the Eastern Mediterranean, Africa, Asia Pacific and Latin America to establish trusted advisors in the areas to support "economic and social development in line with the UN Sustainable Development Goals."
4. Collaborations and alliances: Collaboration with external organizations, including UNESCO, Enactus, the Global Reporting Initiative, Microsoft and ServiceNow to supply new tools and solutions for clients' ESG programs.
5. Listening and taking action: KPMG will launch "Voices for a Sustainable Future," a platform designed to share the views of "established and new thinkers, giving voice to critical issues — from climate change to gender and race equality."
“It is incumbent on all of us — as businesses and as individuals — to play our part in tackling the challenges that threaten the future of our planet and the quality of life of people throughout the world," said Richard Threlfall, global head of ESG and KPMG Impact, in a statement. "Our global ESG strategy will help equip our people to make a difference, as well as mobilize data and technology in support. But we also recognize that the changes society is demanding will be realized most effectively through open collaboration based on trust, and we will continue to seek out opportunities to partner with other organizations that share our sense of purpose to enable a better future for everyone, everywhere.”
More information is available on KPMG's
