Management of material topics

Material topic

Summary of possible impacts

Management of risks and opportunities related to this topic

Ongoing focus on audit quality

Loss of public trust, reputation damage among clients, regulators and jobseekers, possible fines, or additional claims by clients

Extensive quality management system

Quality embedded in culture, values and behaviors

Regular internal/external inspections

System of Engagement Quality Control Reviews

Extensive training, monitoring and compliance programs

Well-being of our workforce, both mental and physical

Increased absenteeism, failure to attract and retain talent, loss of status as leading employer

Extensive health and well-being program (including new well-being platform and Psychological Safety initiative)

Manage work volumes better by increasing recruitment and more flexible approach to resourcing and staffing.

Growing use of digital technologies throughout the economy

Opportunity to increase efficiency and lower costs, need for greater investment in new technologies

Investment in new, internal operating models (including KPMG Clara etc.)

Continued expansion of Connected, Powered, Trusted offering to clients

Working with clients on digitizing existing business models

Increased focus on ESG issues among both clients and regulators

Increased demand from clients for support in switching to more sustainable business models; increased regulatory requirements for both KPMG N.V. and clients

Advisory work with clients on ESG strategy, sustainable finance, supply chain management, human rights etc.

Extend assurance to non-financial disclosures (including adoption of EU taxonomy and planned Corporate Sustainability Reporting Directive)

Development of new ESG curriculum internally

Continuous engagement with regulators and other standard setters

Impact of war in Ukraine on the economic and business environment

Rising energy prices and higher inflation; slower economic growth and increased emphasis on energy security

Work with clients in both public and private sector on energy transition

Help clients adapt to rising inflation, supply chain pressures and possible impact on consumer spending

Closure of KPMG offices in Russia and Belarus; measures to support Russian and Ukrainian employees at KPMG N.V.

Skills shortages in the audit sector and wider Dutch economy

Challenges in both recruitment and retention; increased work volume for existing staff

Comprehensive learning and development program

More flexible approach to workforce management and outsourcing

Step-up in recruitment and introduction of new traineeships ‘tracks’

Success-sharing incentive payments and increase in basic salaries

Enhancing employee value proposition and targeted recruitment campaign aimed at data and digital

Note: management of these material issues is incorporated into our Trust & Growth strategy as well as into our approach to risk management and stakeholder engagement. Please refer to our Governance (new window) section for more information about our policies, controls and commitments in these areas. Our value creation model (new window) sets out how we seek to create value through our strategy and relations with our main stakeholder groups.