Supplier management G4-HR10 | 12

The procurement of suppliers is generally centralised at our Purchasing department in São Paulo. However, when economically feasible, suppliers are procured regionally in cases such as cleaning services and materials.

The service provision agreements (building maintenance and management, receptions, cleaning, canteens, dispatch, couriers, technical support and security services) in São Paulo account for around 70% of total outsourced staff in Brazil. We accordingly require these suppliers to properly register their employees in accordance with Brazil's legislation. Payment of these suppliers is only made upon presentation of monthly documents that provide evidence of the employment relationship. G4-14

Following the commitment undertaken by KPMG International to the UN's Guiding Principles on Human Rights, the subject of human rights has featured in KPMG's strategy, also influencing relations with suppliers and clients. Standard draft contracts have included anti-bribery and pro-human rights provisions since 2012 and to date no contract has been refused due to a violation of human rights.

Despite the fact we do not have a complex and high-impact supply chain - due to the segment we operate in - in 2013 we took another step forward and began mapping our key suppliers during the ‘Sustainability Workshop: critical suppliers’. Further progress was made in 2014 with the internal validation of the Suppliers' Code of Conduct , which will be introduced in 2015. Discussion and reflection about this matter will continue over the next two years, also using inputs from working groups of other member firms to determine the critical suppliers in our chain. G4-12