Our performance in 2014
Using the Six Capitals framework, we have provided greater insight into the resources and relationships used and affected by KPMG in our broader activities, explaining “how we convert the inputs from each of these Capitals into products or services, fulfilling our strategic purposes and creating value over the short, medium and long term for us and our stakeholders.” Framework, IIRC
The chart on the following page summarises the exercise we conducted on the Six Capitals Proposed by the IIRC. This reflection has made it clearer than ever that sustainability is at the heart of our business; the confidence we inspire and the change we empower through the two key Capitals that we provide to the world (Intellectual and Human) foster practices and more respectful relationships between public and private organisations, their stakeholders and natural resources.
The following report is structured on the Six Capitals.
Capitals are stores of value that, in one form or another, become inputs to the organisation’s business model. They are also increased, decreased or transformed through the activities and outputs of the organisation in that they are enhanced, consumed, modified or otherwise affected by those activities and outputs.
Framework, IIRC
KPMG's Capitals
G4-20 l 21
Inputs
High-level material topics and strategic pillar
Specific material topics
KPMG Indicators
Outputs/Value created
Potential negative impact G4-20 | 21
intellectual
Inputs
Training and development/KPMG Business School; Global Opportunities; Centres of Excellence and the KPMG International network; Proprietary methods, processes and procedures; Producing and sharing expertise; Risk and quality management
High-level material topics and strategic pillar
High-quality and fully
independent services and
Ethical business conduct
Specific material topics
Ethics & Integrity; Risk and quality management frameworks and systems; Privacy & Information Security; Training & Development
KPMG Indicators
Hours and money invested in training and development; Trainees trained and hired; Mobility programme participants; Publications and events produced by the Global Network
Outputs/Value created
Services and initiatives creating value for stakeholders; Professional development; Innovation in industry practices; New audit technologies and methods; Encouraging businesses to adopt best governance practices; Improving efficiency in our clients’ processes and controls enhances profitability, income generation and employment; A Financial Statement Audit that builds confidence and credibility; Efficient risk and quality management, at both KPMG and our clients
Potential negative impact G4-20 | 21
Any loss of quality in services provided and/or data protection can have financial or confidence-related impacts (professionals, Organization, clients and/or market)
human
Inputs
Professionals highly trained in their fields and in the various market segments; Professional engagement hours; KPMG International’s global network; People Management Policies, Performance and Culture; Diversity
High-level material topics and strategic pillar
Good treatment of
employees; High-quality;
fully independent services;
People - Employer of Choice;
Professionalism & Integrity
Specific material topics
Attracting and retaining talent; Career planning and development; Remuneration; Quality of Life; Benefits; Organizational Climate; Diversity
KPMG Indicators
Number of professionals; Education levels; Number of promotions; GPS Results; Diversity data; Health and safety targets; Benefits
Outputs/Value created
The ethics, professionalism and integrity of our professionals; Motivation to deliver high performance and quality; Contribution to our clients’ transition to responsible capitalism and creating shared value
Potential negative impact G4-20 | 21
For our professionals, the ability to balance their work and personal life during the busy season. For the Organization, turnover and potential loss of expertise and/or the need to invest in new personnel
financial
Inputs
Compensation for services provided; Debt or equity funding
High-level material topics and strategic pillar
High-quality and fully
independent services;
Quality Growth and
Professionalism & Integrity
Specific material topics
Economic performance; Investment & Innovation
KPMG Indicators
Statement of Added Value; Investment and innovation in services
Outputs/Value created
Financial returns for partners and directors; Profit sharing; Developing our professionals and new services to assist clients in decision making; Tax; Salaries; Payments to suppliers; Community investment
Potential negative impact G4-20 | 21
Failing to achieve business performance targets can affect profit-sharing payments to partners and professionals, as well as investment capacity
manufactured
Inputs/Insumos
26 offices in Brazil; IT infrastructure and equipment; New offices in São Paulo; IBS; KFleet
High-level material topics and strategic pillar
High-quality and fully
independent services;
Responsible and transparent
governance systems;
Quality Growth and
Professionalism & Integrity
Specific material topics
Organizational profile items (offices/footprint); Investments; Organizational Climate; Benefits
KPMG Indicators
LEED Gold certification for new office building; Investment in IT; Helpdesk assessment by KPMG professionals; Deployment of IBS
Outputs/Value created
Management of Information Security; Productivity; Efficiency; Occupational health and safety; Reduced environmental impact in building and equipping the new office building
Potential negative impact G4-20 | 21
Urban mobility - impact from commuting to and from the new building in São Paulo
social and relationship
Inputs
Brand & Reputation; Client and market relations; engagement with trade associations, regulators and the media; Sharing expertise; Citizenship & Diversity Programmes; Voluntary commitments undertaken
High-level material topics and strategic pillar
Ethical business conduct;
Responsible; transparent
governance systems;
Professionalism & Integrity
and Global Consistency
Specific material topics
Client and market relations; Client satisfaction; Client acceptance and continuity; Commitment to communities
KPMG Indicators
Client satisfaction survey; Mentions in the media; Client acceptance and continuity procedures; Suppliers’ Code of Conduct; Number of events and publications produced; Community investment
Outputs/Value created
Creating value for society; Active participation in debates on the regulatory environment, the responsibilities of our practices and tax morality; Shared expertise that empowers our stakeholders; Attracting talent
Potential negative impact G4-20 | 21
Negative exposure in the media as a result of providing services to clients under scrutiny
natural
Inputs
Basic water and energy resources for the operation of our offices; Fuel used in transporting our professionals during engagements
High-level material topics and strategic pillar
Specific material topics
Voluntary global environmental commitment
KPMG Indicators
Management and control of local environmental targets; A global commitment to reducing GHG emissions; Environmental awareness initiatives
Outputs/Value created
Environmental policy commitments: Raise awareness across the Organization and among our stakeholders on the responsible management and use of natural resources; reduce GHG emissions; Provide services to help clients adopt more sustainable business models
Potential negative impact G4-20 | 21
We produce no direct environmental impacts. GHG commissions are an indirect, but material, impact and we have therefore set global voluntary emissions reduction targets