For the composition and experience of KPMG N.V.’s Board of Management and Supervisory Board and the role of the administrative, management, and supervisory bodies, see Role of the Board of Management and Supervisory Board (new window), Board of Management (new window), and Members of the Supervisory Board (new window) sections in our management review.
The Board of Management ensures employee representation through regular consultations with the Works Council and other employee groups such as the Young Board Now, a Board comprising employees aged 31 or younger. Further information on representation and engaging with employees can be found in section 3.1.5.1 Social dialogue.
Responsibility for managing sustainability matters lies with our Chief Executive Officer (CEO), who is accountable for integrating environmental, social, and governance (ESG) considerations into our business strategy, internal controls, and operations. Our CEO’s mandate includes ensuring the effective execution of sustainability initiatives and management of sustainability matters. Our Supervisory Board is responsible for overseeing the setting of the sustainability strategy and progress thereon. This includes oversight on defining policies and action plans, setting targets, and measuring performance, which support us in consistently paying attention to, taking responsibility for, and being transparent on our sustainability performance.
The Board of Management updates the Supervisory Board every quarter on the progress and performance of our sustainability matters, ensuring transparency and accountability. These updates provide the Supervisory Board with insights to help it decide on actions or investments to steer our sustainability performance. They also give insight on the risks and internal control of sustainability information, driving decisions to improve the internal control environment as well as data availability and quality.
The Supervisory Board and Board of Management possess a diverse range of experience and are capable to address relevant sustainability matters. For specific technical expertise on GHG accounting and sustainability reporting requirements, they are supported with sustainability-related expertise from KPMG N.V.’s own Sustainability Advisory team. This expertise was shared in various sessions with the Board of Management and (subcommittees of) the Supervisory Board. Three of our Supervisory Board members have been assigned ESG as a focus area, for example due to previous experience with the topic. Furthermore, our Board of Management has followed specific trainings as part of the ESG Innovation Institute program in collaboration with Nyenrode Business University. Through access to experts and training programs, this allows them to discuss and oversee our sustainability matters.
Further specific sustainability governance responsibilities are assigned as follows:
Our CEO is accountable for setting and achieving sustainability-related targets.
Our Chief Operating Officer (COO) is responsible for environment-related matters, to ensure focused and effective decision-making to accelerate our climate transition.
Our Leadership Team Business Services, chaired by a representative from the Board of Management, convenes every six weeks to monitor the status of our sustainability policies, objectives, and targets.
The structure of our governance facilitates efficient communication and decision-making regarding sustainability matters, allows for timely adjustments, and ensures we remain on track to meet our sustainability goals. It also ensures that the Board of Management and Supervisory Board are actively engaged in setting and monitoring sustainability targets, thus driving continuous improvements in our sustainability performance and consider trade-offs associated within the different sustainability matters if they occur.
The DMA is a fundamental step to prepare for implementing CSRD requirements. Through this process, we have determined the sustainability matters we face, in our own operations and across our value chain. Our Board of Management and Supervisory Board were involved in the 2023/2024 DMA, including by challenging the project team on the DMA and concluding on the outcome and consequences. The sustainability matters described in detail in section 1.8 Material IROs and their interaction with strategy and business model (new window) are addressed in our strategy and governance and monitored quarterly or annually by the Board of Management as described in detail above.