Strategy related to sustainability matters
Our strategy is deeply intertwined with our sustainability matters, addressing key aspects of our business operations and their broader impact on society and the environment. The majority of our sustainability matters form part of our license to operate: taking care of our people[1] to support them to deliver the highest-quality services to our clients, who increasingly need support in their organizational sustainability and digital transformations. See Business model and strategy (new window) for an explanation of our business model. Section 1.8 Material IROs and their interaction with strategy and business model (new window) describes our sustainability matters and how they are related to our value chain.
Our business model focuses on providing professional services related to assurance and advisory. During the reporting period, no significant changes were made to the portfolio of services offered, as we continued to focus on our core competencies. We believe, however, that it is important that all our services address the consequences of the ongoing sustainability transition, an approach we call “watermarking” ESG across our firm, thereby integrating ESG in everything we do. This shift highlights our ability to adapt our service offerings to meet evolving market needs.
The primary markets we serve include the Netherlands, with a strong presence in sectors such as financial services; infrastructure, government, and healthcare; consumer and retail; energy and natural resources; and technology, media, and telecommunications. In 2023/2024, we expanded our services to include more specialized technology advisory support, catering to the increasing demand for digital transformation services among our clients. This strategic move reflects KPMG N.V.'s commitment to staying at the forefront of industry trends and ensuring that we meet the needs of our diverse client base.
At the end of the reporting period, we employed approximately 4,250 employees across the Netherlands. We consider the Netherlands as one region, given the nature of our services and sustainability matters across our offices in the Netherlands.
We adhere to strict compliance standards and ensure that our offerings align with both local and international regulations, maintaining our reputation as a trusted advisor in the Dutch market. We refer to our Regulatory compliance, goverance, and policies enterprise risk as included in the Overview of our financial strategic, operational, and compliance risks (new window) table for more information on how we embed this in our organization.
Our sustainability-related goals mainly focus on retaining top talent and ensuring public trust. As one of the leading audit firms in the Netherlands, KPMG N.V. relies on quality as the core of our business. Not protecting and upholding quality might lead to a loss of public trust, reputational damage, penalties from regulators, and claims from clients. Our sustainability goals are central to KPMG N.V.'s strategy, aligning with our commitment to being a leader in sustainable business practices. We aim to enhance our sustainability advisory services to support clients in the important transition to a sustainable future. To enable this and, in turn, to achieve our goals, KPMG N.V. prioritizes strong relationships with stakeholders, particularly employees. We invest in continuous professional development to ensure that our workforce is equipped to drive our business forward. Our approach includes sustainability objectives that help us retain top talent and foster long-term client relationships.
Most of our clients are directly affected by new and upcoming regulatory requirements, including the CSRD. We also see many companies that are not in scope of these regulations nonetheless facing increasing demands from stakeholders to advance their sustainability performance. We see it as our role to help our clients, across all industries, to fulfil this demand, regardless of their regulatory environment. To enable us to provide the necessary services, we must continue to grow the sustainability capabilities of our Assurance and Advisory businesses.
Our specific strategies on sustainability matters are disclosed in the relevant topical sections of this sustainability statement.
Value chain
Our value chain encompasses a wide range of activities, resources, and relationships, both upstream and downstream. Our services depend on the upstream assets we use to perform our main activities, such as vehicles, buildings, information technology (IT) equipment, and our global KPMG network of resources and services, including advanced IT infrastructure and expertise in emerging technologies. Our relationships with key suppliers – such as those providing digital tools and equipment – are important not only for maintaining our high service standards, but also for reaching our sustainability performance targets.
KPMG N.V.’s downstream value chain includes our clients across various industries, who benefit from our firm’s advisory and assurance services, and society as a whole, which benefits from the trust we generate through the assurance and advice we provide. Our downstream value chain is related to our own operations activities and also includes societal and regulatory bodies that represent end-users of our services. We engage closely with these organizations to maintain and improve the quality of our services; ultimately, this supports our industry and helps our clients comply with regulatory standards and improved sustainability practices and reporting.