KPMG's Global Climate Response (GCR) has evolved to help ensure that across the network, KPMG member firms are working to reduce the environmental impact of their operations, adopt resource-efficient practices and technology, and meet the expectations of clients and the communities in which they operate. The GCR is aligned with the Sustainable Development Goals.
Phase III of KPMG's GCR aims to further reduce environmental impact across the global network by a emission reduction target of 10 percent net per full-time equivalent (FTE) between 2016-2020. The next phase also includes a global renewable energy target of 60 percent of purchased electricity to come from renewable sources by 2020.
KPMG has adopted a new methodology for the Global Climate Response reporting period of 2016-2020. Below is an updated 2015 to 2016 comparison utilizing this new emissions reporting methodology. The larger table below shows the renewable energy growth since 2010, with the 2016 baseline level of 35 percent.
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).