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Material topic |
Summary of possible impacts |
Management of risks and opportunities related to this topic |
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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 |
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Quality embedded in culture, values and behaviors |
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Regular internal/external inspections |
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System of Engagement Quality Control Reviews |
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Extensive training, monitoring and compliance programs |
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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) |
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Manage work volumes better by increasing recruitment and more flexible approach to resourcing and staffing. |
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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.) |
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Continued expansion of Connected, Powered, Trusted offering to clients |
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Working with clients on digitizing existing business models |
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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. |
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Extend assurance to non-financial disclosures (including adoption of EU taxonomy and planned Corporate Sustainability Reporting Directive) |
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Development of new ESG curriculum internally |
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Continuous engagement with regulators and other standard setters |
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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 |
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Help clients adapt to rising inflation, supply chain pressures and possible impact on consumer spending |
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Closure of KPMG offices in Russia and Belarus; measures to support Russian and Ukrainian employees at KPMG N.V. |
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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 |
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More flexible approach to workforce management and outsourcing |
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Step-up in recruitment and introduction of new traineeships ‘tracks’ |
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Success-sharing incentive payments and increase in basic salaries |
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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.