Basis of preparation


This report is intended to provide an overview of KPMG N.V.’s business, strategy and performance. It explains how KPMG N.V., over time, creates value for its stakeholders and society, as an employer, business and supplier of professional services. This report has been written for all KPMG N.V. stakeholders (including clients, employees and the firm’s partners, policymakers, regulators and business partners). Our previous Annual Integrated Report was published in December 2022.


This report covers KPMG N.V. and its subsidiaries. KPMG Meijburg & Co. is a separate KPMG member firm, and as such is not included in the scope of this report. Contents relate to KPMG N.V.’s 2022/2023 financial year, which runs from 1 October 2022 to 30 September 2023.


Content is based on internal reporting. Where external sources are used, this is indicated clearly in the text. Content has been chosen for inclusion based on two criteria:

  • That it is material – i.e., that it has significant impact, or potential impact, on either the company or its stakeholders, as set out in the firm’s annual material assessment.

  • That it is mandated – i.e., that it relates to information required under current reporting obligations (or future obligations if already known, see note below).

Except for the Financial Statements (new window), figures used in the report are generally rounded to the nearest million or billion. In some cases, rounded figures have been used to calculate percentages. Throughout this report, all numbers per FTE (full-time equivalent) are based on average FTEs for the financial year, unless otherwise stated.

Review and approval

This report (including the annual financial statements (new window)) was prepared by KPMG N.V.’s Board of Management. The report also includes the 2022/2023 KPMG Accountants B.V. Transparency Report, drafted in line with EU Regulation 537/2014 Article 13 regarding statutory audits of public interest entity (PIE) clients. The reporting process was overseen by a project team led by KPMG N.V.’s Finance department. All content was reviewed by the firm’s Board of Management and Supervisory Board prior to publication. Additionally, financial statements were subject to external assurance, as were parts of the report (see note below).

Financial information

Financial statements in this report were prepared in accordance with the International Financial Reporting Standards (IFRS (new window)), 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 (new window) (Basis of Preparation).

Non-financial information and ESG reporting frameworks

This report is published in accordance with the latest standards issued by the Global Reporting Initiative (GRI (new window)). A GRI Contents Index is available here (new window). In drafting this report, KPMG N.V. also takes into account the Integrated Reporting <IR> Framework (new window). KPMG N.V. is currently working toward compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD (new window)) and European Sustainability Reporting Standards (ESRS). More information on this can be found under Managing our environmental, social and governance impact (new window).

External assurance

External assurance was provided by PwC Netherlands. For further information, please see the and independent assurance report (new window). This is the first year PwC Netherlands has provided external assurance on this report. KPMG N.V. works closely with its external auditor to strengthen its disclosures, reporting process and internal data collection and verification. Please note that PwC Netherlands provided assurance on the PDF version of this report.

Note on materiality assessment

We carried out an internal review of our operating, business and market environment to determine our material topics for this 2022/2023 Integrated Report. Following this review, management decided:

  • That five of the six material topics identified in 2021/2022 should be retained

  • That one topic – Impact of the war in Ukraine on the economic and business environment – no longer warrants inclusion because, despite the severity of the geopolitical situation, its impact has reduced over the past year both from an impact and a financial perspective

  • That Inclusion, diversity & equity should be added, given its importance to KPMG N.V.’s strategy, performance and approach to recruitment and retention

Management also decided to make minor amendments to the definitions used for these topics, mainly for the purposes of clarification and to reflect recent developments in the Company’s operating environment. This resulted in a final list of six material topics, as follows:

Material topic


Ongoing focus on (audit) quality

Delivering high quality services, resulting in added value to society, our clients and economic markets by providing assurance, insights and public trust

Well-being of our workforce

Growing importance of maintaining the mental and physical well-being of KPMG N.V. employees

Digital technologies & AI

Growing use of digital technologies both at KPMG N.V. and throughout the wider economy, including the possible disruptive impact of generative artificial intelligence (AI)

ESG developments
Including sub-topics: ESG impact on clients, ESG impact on the environment and ESG impact on society

Comprehensive focus on ESG strategy, performance and disclosures, both internally and externally among external stakeholders

Inclusion, diversity & equity

Need for greater diversity and inclusion at KPMG N.V. to create a positive work environment and ensure talent attraction and retention

Skills shortages

Effects of continued shortages of specific skills in both Assurance and Advisory, as well as the wider Dutch economy

  • Our 2021/2022 material topics were as follows: Ongoing focus on audit quality; Well-being of our workforce, both mental and physical; Growing use of digital technologies throughout the economy; Increased focus on ESG issues among both clients and regulators; Impact of the war in Ukraine on the economic and business environment; Skills shortages in the audit sector and wider Dutch economy.

These material topics form the basis for this report and for disclosures against our key performance indicators (new window) (KPIs). Results of our assessment were reviewed and approved by members of the Board of Management before publication.

For 2023/2024, we will revert to an annual materiality assessment based on input from both internal and external stakeholders. In addition, we will adopt the new double materiality concept, as defined in the EU’s upcoming Corporate Sustainability Reporting Directive (CSRD (new window)), reflecting both financial and impact materiality. 

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.

Note on availability of resources and inputs

Our business relies on certain resources being available. These resources include financial capital, for example, and sufficient skills and labor. Inevitably, changes to our business environment may affect the future availability of these resources and therefore our ability to continue creating value for society. We see the principal risks in this respect as follows:

  • Persistence of skills shortages across the profession, leading to a competitive labor market, rising labor costs and possible capacity constraints

  • Slowdown in public sector demand following recent elections in the Netherlands, and possible reductions in public spending

  • Need to adapt to continued regulatory change, particularly the introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD (new window))

  • Keeping pace with strategic investments required, especially in new digital, data and AI technologies

For further information, see Managing risk (new window) section.