Reporting principles


This report provides an overview of KPMG N.V.’s business, strategy and performance. It explains how KPMG N.V., over time, creates value for its stakeholders both as an employer and as a provider of professional services. This report has been written for all KPMG N.V. stakeholders (including employees, the firm’s partners, clients, policymakers, regulators, suppliers and other business partners).


This report covers KPMG N.V. and its subsidiaries. KPMG Meijburg & Co. is a separate KPMG member firm, and is therefore not included in the scope of this report, unless otherwise stated. Contents relate to KPMG N.V.’s 2021/2022 financial year, running from 1 October 2021 to 30 September 2022.


Content is based on extensive internal reporting. Where external sources are used, this is indicated clearly in the text. Content focuses on issues material to KPMG N.V. and its stakeholders, based on the outcome of the firm’s annual materiality assessment. Our reporting process is overseen by a project team led by our Finance department. All content is reviewed by the firm’s Board of Management and Supervisory Board prior to publication. Except for the Financial Statements, figures used in the report are rounded to the nearest million or billion. In some cases, rounded figures are used to calculate percentages.

Preparation of this report

This Integrated Report, including the annual financial statements (new window), was prepared by KPMG N.V.’s Board of Management. The report also includes the 2021/2022 KPMG Accountants B.V. Transparency Report, compiled in line with 537/2014 EU regulation Article 13 Transparency report. Financial statements were subject to external assurance, as were parts of the Integrated Report (see note below).

Financial information

Financial Statements were prepared in accordance with the International Financial Reporting Standards (new window) (IFRS), as adopted by the European Union, and with Section 2:362(9) of the Dutch Civil Code (new window). All financial performance data is presented in euros (EUR), the firm’s functional currency. For more information, see Note 2 to the Consolidated Financial Statements (Basis of Preparation) (new window).

Non-financial information

This report is published in accordance with standards issued by the Global Reporting Initiative (new window) (GRI). A GRI Contents Index is available here (new window). In compiling this report, KPMG N.V. also takes into account the Integrated Reporting <IR> Framework (new window).

Throughout the report, all numbers per FTE are based on average FTEs for the financial year, unless stated otherwise.

External assurance

External assurance was provided by BDO Audit & Assurance B.V. Please see the independent auditor’s report (new window) and independent assurance report (new window) for details. KPMG N.V. works closely with its external auditor to strengthen its reporting, and improve internal data collection and verification processes. Please note that BDO Audit & Assurance B.V. provided assurance on the PDF version of this report.

Materiality assessment

Our materiality assessment is conducted each year to identify our material topics. Our 2021/2022 assessment identified six material topics:

  1. Ongoing focus on audit quality

  2. Well-being of our workforce, both mental and physical

  3. Growing use of digital technologies throughout the economy

  4. Increased focus on ESG issues among both clients and regulators

  5. Impact of war in Ukraine on the economic and business environment

  6. Skills shortages in the audit sector and wider Dutch economy

We adopted an entirely new methodology for our latest assessment in line with requirements under GRI standards. Therefore, topics from 2021/2022 should not be directly compared with the previous year[1].

Our 2021/2022 materiality assessment was based on a three-step process:

  • First, conduct an extensive review of KPMG N.V.’s operating environment. Use results from this review to compile a long list of potential material topics.

  • Second, reduce this long list to a short list, based on an initial assessment of topics’ impact and likelihood.

  • Third, ask stakeholder representatives and senior management to rank short-listed topics through an independent online survey. A total of 13 topics were short-listed as follows: compliance with GDPR; continuing to strengthen quality safeguards within the audit industry; cybersecurity and data protection; digital technologies; diversity & inclusion; energy transition; ESG compliance; gatekeeper role; greater transparency in audit industry; increased ESG focus among clients and regulators; skills shortages; war in Ukraine; well-being of workforce.


Definition of impact:

Throughout the assessment, impact was defined as follows: impact or potential impact over the next twelve months on:

  1. KPMG’s financial position (including enterprise value, cash flows, revenue and profit), reputation or business operations, or;

  2. Stakeholders’ financial position and/or operations and decision-making.

Participants in the online survey were also given the opportunity to identify topics likely to be ‘most material’ over the next three years.

Survey participants and weighting:

Stakeholder representatives were drawn from KPMG N.V.’s main stakeholder groups (clients; employees; equity partners; regulators, policymakers and other standard setters; suppliers, business partners and KPMG network; wider society, including members of KPMG N.V.’s Supervisory Board, academia, industry associations, peers, local community groups and NGOs). Results were weighted to reflect relative differences in impact and influence between stakeholder groups.

Operating environment review:

This was based on third-party research; media articles; reports and other publications from regulators, peers, industry associations and NGOs.

Review and approval:

Our materiality assessment was carried out by an external consultancy to ensure impartiality. Results were reviewed by an internal project team and senior management prior to publication.

Definitions of short-listed topics:

Compliance with GDPR: KPMG NL clients’ current compliance with GDPR and readiness for possible additional controls and enforcement measures.

Continuing to strengthen quality safeguards within the audit industry: Current efforts in the Netherlands to further strengthen quality standards within the audit industry

Cybersecurity and data protection: Increasing need among KPMG and its clients to guard against cyber attacks and data breaches through stronger IT systems servers and data management.

Digital technologies: Growing use of digital technologies both at KPMG N.V. and throughout the wider economy

Diversity & inclusion: Need for greater diversity and inclusion at KPMG NL to create a positive work environment and ensure talent attraction and retention

Energy transition: Impact of the current energy transition on KPMG NL’s energy and natural resources clients, including increased regulation, increased prices and development of new low-carbon fuels.

ESG compliance: Need of KPMG and its clients to comply with new and upcoming EU ESG and non-financial reporting requirements[2], as well as to develop necessary performance indicators and data management systems.

Gatekeeper role: Growing importance of KPMG NL’s gatekeeper role to help combat fraud, mismanagement and money laundering.

Greater transparency in audit industry: Pressure on audit companies in the Netherlands to be more transparent about business relations, approach and interests.

Increased focus on ESG issues: Increased focus on ESG strategy, performance and disclosures among KPMG N.V. clients and regulators

Skills shortages: Effects of continued shortages of specific skills in both the audit industry and the wider Dutch economy.

War in Ukraine: Direct and indirect effects of the current conflict in Ukraine on the wider Dutch economy and business sector

Well-being of our workforce: Growing importance of maintaining the mental and physical well-being of KPMG N.V. employees, particularly post-pandemic

Note on availability of resources and inputs

Our business relies on certain resources being available – these are detailed in our value creation model (new window). Inevitably, changes to our business environment may affect the future availability of these resources. We see the principal risks in this respect as follows:

  • Skills shortages: across the profession, we are seeing continued shortages of key skills, mainly in data analysis, digital technologies and audit, putting additional pressure on recruitment and internal training and skills development. We expect these shortages to continue into 2022/2023. (Human capital)

  • Economic slowdown: economic growth is forecast to slow in 2023, which may lead to clients postponing development projects and pressure on rates, particularly in our advisory business. Rising prices and the continuing war in Ukraine are adding to economic uncertainty. (Financial and social capital)

  • Continued regulatory change: we are seeing new regulations coming into effect, particularly in ESG reporting, which may increase demand for our assurance services. In addition, within the profession, the quartermasters are expected to report in 2023 on their work developing common audit quality standards. (Intellectual capital)

For further information, see strategic risks & controls (new window). Please note this note has been included in compliance with the <IR> Framework (new window).

  • 1For reference, material topics for 2020/2021 were as follows: integrity & independence, quality & transparency, societal impact, regulatory change, being a good employer, inclusion & diversity, talent development, client satisfaction, vision & thought leadership, innovation, partnerships & alliances, sustainable profit and regulatory changes.
  • 2Including, where relevant, the Corporate Sustainability Reporting Directive (CSRD), EU taxonomy of sustainable activities and Sustainable Finance Disclosure Regulation (SFDR).