As part of our strategy, we focus on sectors where we have recognized expertise, can bring added value to clients and support change and growth:
During the past year, we adopted an increasingly strategic approach to client management, building trust by increasing our understanding of each sector and what drives clients’ individual businesses. Since 2020, we have won 7 of our ten mandatory firm rotations (MFR) until 30 September 2022 – testimony to confidence in our services. In our Advisory business, we focused on digitalization and ESG – two key areas where we see strong client demand. Across the board, we take a practical, ‘hands-on’ approach, focused on finding solutions for our clients.
Development in our priority sectors in 2021/2022
Financial services: Client demand remained strong throughout the year, mainly from increased regulation – including ESG reporting – and changes to business models as banks increasingly digitize their client relations.
Energy & Natural Resources: In the wake of the war in Ukraine, high prices are benefiting energy producers, but squeezing intermediaries. At the same time, the energy transition and the switch to more renewable sources is driving demand across the sector.
Consumer & Retail: Rising prices are already beginning to weaken consumer spending, though we see significant client demand in the sector, particularly from increased digitalization and supply chain pressures.
IG&H: We see continued client demand in this sector, particularly given the government’s focus in the wake of the pandemic on infrastructure, healthcare, defense, housing and the energy transition.
TMT: During the year, the sector continued to invest in digitalization and related payment services. We recognize, however, that a slowdown in 2023 could lead to companies putting expansion plans and new investments on hold.
Over the past year, we have also made progress with other key initiatives to further improve service and quality for clients. We have continued to invest in digital, moving towards a fully digital audit with the introduction of KPMG Clara (new window). At the same time, we are looking to increase services in new areas: in Deals (new window), for example, we are making new strategic hires. We have also expanded Managed Services (new window) to meet client demand in areas such as internal audit and cybersecurity. Finally, we are embedding ESG in all our Advisory services, developing ‘ESG transformation visions’ for all priority sectors and stepping up training for assurance teams to prepare for the EU’s new CSRD, which comes into effect from 2024.
Connected, Powered, Trusted
Connected (new window) – i.e., efficient, connected to its customers, with no internal silos
Powered (new window) – i.e., uses the latest technologies and has standardized its internal processes and systems
Trusted (new window) – i.e., can manage change successfully because it has the confidence of its stakeholders.