Definitions and detailed basis for preparations of metrics

E1 Climate change	Definition
Scope 1
Scope 1	Emissions from direct operations from owned and controlled activities: Stationary combustion (tCO₂e) of natural gas that is used for heating in our office buildings. Mobile combustion (tCO₂e) of benzine and diesel used in leased company cars as reported by the fleet supplier. We use https://co2emissiefactoren.nl/ to determine the emission factors used in accounting for this scope.
Scope 2
Scope 2 location-based	Emissions from purchased electricity: Purchased electricity in our office buildings. Electricity consumed for charging our electric vehicle (EV) fleet, as reported by the fleet supplier, and converted to kWh using a supplier-specific factor. We use https://co2emissiefactoren.nl to determine the emission factors used in accounting for this scope.
Scope 2 market-based	Emissions from purchased electricity including market-based instruments: Electricity consumption accounted including purchased renewable energy certificates for green offices. This includes 10 green offices located in Alkmaar, Amstelveen, Arnhem, Breda, The Hague, Eindhoven, Enschede, Groningen, Utrecht, Rotterdam, and excludes offices rented in Maastricht and Zwolle. In certain cases where certificate is not yet available, the contract serves as evidence for green offices. Electricity consumed for charging our EV fleet, as reported by the fleet supplier, and converted to KWh using a supplier-specific factor. We use the Association of Issuing Bodies residual mix to determine the emission factors used in accounting for this scope.
Scope 3
Scope 3 overall emissions	We follow the GHG Protocol Corporate Value Chain Standard to measure and report on Scope 3 emissions. We conducted a full screening on our value chain emissions and assessed the material and relevant Scope 3 categories as disclosed in this report.
Category 1 - Purchased goods and services IT devices	Upstream emissions associated with the procurement of IT equipment, including but not limited to monitors, desktops, and mobile devices. To estimate emissions, we use product carbon footprint provided by suppliers, including emissions from materials extraction, manufacturing, and upstream transportation.
Category 1 - Purchased goods and services - Other	This category included all upstream emissions from both goods procured and services taken within the reporting year excluding, IT devices. To estimate these emissions, we applied a spend-based accounting method using the EXIOBASE 2022 database, adjusted for 2025 inflaction factors. While this method is recommended by the GHG Protocol and widely adopted, it has inherent limitations, including a higher degree of uncertainty. Sector-specific emission factors can vary form year to year, which may not always accurately reflect the actual changes in emissions. Part of the observed increase since our base year can be attributed to shifts in these underlying emission factors, introducing uncertainty about whether the increase is due to actual rising GHG emissions in our value chain or limitations of the EXIOBASE model. For our calculations, we used EXIOBASE 2019 for the base year and EXIOBASE 2022 for the current year, including inflation adjustments. Additionally, we improved the allocation of emissions by refining the spend-based data distribution, ensuring a more accurate representation of emissions per expenditure category. Due to data availability, 2018/2019 figures represent the re-baselining analysis using an FTE approach based on 2021/2022 purchased goods and services figures.
Category 3 - Fuel and energy-related activities	Upstream emissions associated with fuel and electricity consumption accounted for as in Scopes 1 and 2. We use https://co2emissiefactoren.nl to determine the emission factors used in accounting for this scope.
Category 5 - Waste generated in operations	Total waste generated in our operations. We use the DEFRA methodology to determine the emission factors used in accounting for this scope. Due to data limitations in 2024/2025, the waste amount on which we base the emissions estimation is derived from prior-year FTE figures.
Category 6 - Business travel	Emissions from distances traveled for business-related activities. Air travel distance reported by our travel booking agency for short-, medium-, and long-haul flights taken per ticket class. Rail travel kilometers registered within our internal system. Mobility scheme kilometers by public transport (bus, metro, and tram), registered without our internal system. Due to data availability, these emission sources are based on calender year 2024 and extrapolated to reflect FY2025 figures. The extrapolation is conducted based on headcount, since this metric accurately reflects the mobility of our employees. We use the DEFRA to determine the Air Travel emission factors and https://co2emissiefactoren.nl for transport modes used in accounting for this scope.
Category 7 - Employee commuting	Total kilometers registered under employee mobility scheme for employees without leased cars. We use https://co2emissiefactoren.nl to determine the emission factors for transportation used in accounting for this scope. Due to data availability, these emission sources are based on calender year 2024 and extrapolated to reflect FY2025 figures. The extrapolation is conducted based on headcount, since this metric accurately reflects the mobility of our employees.
S1 Own workforce
Key performance indicator	Definition
Number of employees	The total number of employees by headcount and a breakdown by gender based on a reference date of October 1, 2025. This includes regular employees, fixed-term employees, non-equity partners, inbound expats, casual workers, and virtual short-termers. Gender is self-registered by employees during onboarding. Afterward, this is reviewed based on their passport or another form of ID.
Number of permanent employees, temporary employees, and non-guaranteed hours employees	The total number of employees broken down by headcount and employment relationship (permanent/temporary/non-guaranteed), with a split by business line and gender, as of a reference date of October 1, 2025.
Total number of leavers	The total number of employees by headcount who leave the organization during the financial year (October 1 to September 30) with a split by business line and gender.
Employee turnover	The percentage of employees (headcount) who leave the organization during the financial year (October 1 to September 30), based on the headcount of October 1, 2024 with a split by business line.
Full-time and part-time employees	The total number of employees by headcount, including full-time (40 hours) versus part-time (< 40 hours) working hours, with a split by business line and gender, based on a reference date of October 1, 2025.
Total number of non-employees	The total headcount of people without an employment relationship but who perform work for KPMG, with a reference date of October 1, 2025. These include equity partners, offshore resources, contractors, and interns.
Gender diversity	The total number and percentage of employees per employee category (Partner and Director, excluding equity partners), senior manager, manager, senior, junior, and other (secretaries and other Central Services employees) by headcount and a breakdown by gender, based on a reference date of October 1, 2025.
Gender diversity at top management level	The total number of headcount and rate (percentage) within KPMG's governance bodies by headcount and a breakdown by gender, based on a reference date of October 1, 2025. Governance bodies = Supervisory Board, Board of Management and Leadership Teams of Advisory/Assurance/Central Services.
Number and percentage of employees by age group	The distribution of employees (headcount and percentage) by headcount, and a breakdown by age group (< 30 years old, 30-50 years old, > 50 years old), based on a reference date of October 1, 2025.
Percentage participation in regular performance and career development	Percentage of employees by headcount on October 1, 2025, that participated in regular performance and career development reviews by employee category, business line, and gender.
Average training hours per employee	Average internal and external training hours per employee, based on average headcount and broken down by business line, gender, and employee category, for the financial year (October 1 to September 30).
Family-related leave	All employees are entitled to family-related leave. The percentage of entitled employees who took family-related leave is the total number of employees that took any family-related leave divided by the average headcount of the financial year. Family-related leave is based on birth leave, additional birth leave (first week), additional birth leave (second to sixth weeks), paid parental leave, care leave, and maternity leave.
Gender pay-gap	The difference in average total compensation between male and female employees, and a breakdown by employee category: Partner/Director (excluding equity partners), senior manager, manager, senior, junior, and other, based on a reference date of the opening balance workforce (October 1, 2025).
	Our calculation is based on the following formula: Average male total compensation minus average female total compensation, divided by average male total compensation, and multiplied by 100. Total compensation is the total fixed pay and total variable pay amount.
	Total fixed pay includes full-time salary (including holiday pay), mobility allowance, and pension contribution. Total variable pay includes variable remuneration, one-off bonuses for special achievements, and succes-sharing benefits.
Annual total remuneration ratio	The ratio within KPMG (excluding KPMG International) between the remuneration of its "highest-paid individual" and the median remuneration for its employees (excluding the highest-paid individual), based on a reference date of the opening balance workforce (October 1, 2025).
	Calculated as "annual total remuneration" for the undertaking's "highest-paid indidual" divided by "median employee annual total remuneration excluding the highest-paid individual". Annual total remuneration refers to the total compensation, which includes total fixed pay and total variable pay.
	Total fixed pay includes full-time salary (including holiday pay), mobility allowance, and pension contribution. Total variable pay includes variable remuneration, one-off bonuses for special achievements, and success-sharing benefits.
The total number of incidents of discrimination	Total discrimination-related incidents, including harassment related to discrimination reported in the reporting period from the following channels: Counselor Mediator Complaints and Disputes Committee Internal Audit & Compliance Office
Other complaints	Total complaints excluding the discrimination-related incidents reported in the reporting period from the following channels: Counselor Mediator Complaints and Disputes Committee Internal Audit & Compliance Office
Employee engagement	Percentage of positive responses to Global People Survey (GPS) questions ("strongly agree" and ''agree" on a five-point scale) in the reporting period relating to employee engagement, e.g.,"I am proud to work for KPMG and "I would recommended KPMG as a great place to work."
Gender diversity at Partner/Director level (including equity partners)	The total number and percentage of employees per employee category, Partner (including equity partners), Director, senior manager, manager, senior, junior, and other (secretaries and other Central Services employees), by headcount and broken down by gender, based on a reference date of October 1, 2025.
Retention performance	The percentage of active employees and equity partners (excluding inbound expats) by headcount at the end of the financial year (September 30), based on the opening balance retention of the financial year (October 1, 2024). For the business lines Assurance and Advisory only client-facing staff has been taken into account.
Satisfaction score well-being	Percentage of positive responses to GPS questions ("strongly agree" and "agree" on a five-point scale) in the reporting period relating to employee engagement, e.g., "I am treated with dignity and respect at work" and "There is open and honest two-way communication at KPMG".
Cultural diversity	Percentage of cultural diversity indicated by migration background based on the CBS's Cultural Diversity Barometer.
G1 Governance
Key performance indicator	Definition
Results of internal KPMG audit inspections	Percentage of audit engagements rated "compliant" and "compliant - improvement needed" during internal Quality Performance Reviews completed during the reporting period.
Results of external inspections	Percentage of external reviews by the AFM, NBA, and PCAOB performed during the reporting period that were rated satisfactory as a percentage of the total number of external reviews. The results are based on finalized file reviews by the AFM, NBA, and PCAOB. Theme-driven reviews by the AFM are excluded, as these do not provide a definitive conclusion on file compliance.
Percentage of enagements involving engagement quality control review (EQCR)	Number of EQCRs being carried out prior to publication of auditor's report as a percentage of legal audits being conducted during the reporting period.
EQCR hours spent as a percentage of total hours spent on EQCR engagements (scope: all EQCR engagements, excluding three largest clients)	Number of hours spent on EQCRs by the EQCR partner and designated EQCR Assist (senior manager and up) as a percentage of total hours spent on audit engagements involving an EQCR during the reporting period, excluding the three largest clients.
Partner hours in public-interest entity (PIE) audit engagements (OOB)	Percentage of hours spent by KPMG Partners and Directors on financial statement audit engagements for PIE clients during the reporting period.
Partner hours in non-PIE audit engagements (non-OOB)	Percentage of hours spent by KPMG Partners and Directors on financial statement audit engagements for non-PIE clients during the reporting period.
Average number of hours spent in training per client-facing professional in audit	Average number of hours per audit professional (excl. non-client facing professionals) spent on study or training during the financial year.
Hours spent on PIE audit engagements (OOB) by IT and other specialists	Percentage of hours spent by specialists working in Assurance departments (other than audit) on financial statement audit engagements for PIE clients during the reporting period.
Hours spent on non-PIE audit engagements (non-OOB) by IT and other specialists	Percentage of hours spent by specialists working in Assurance departments (other than audit) on financial statement audit engagements for non-PIE clients during the reporting period.
Technical resources support (FTEs) as a percentage of total audit FTEs	The percentage of the YTD average FTE sum of technical resource support, based on the total YTD average FTE sum of all professionals within audit during the financial year (or reporting period).
Number of technical consultations as a percentage of total audit engagements	Technical audit or accounting consultations by the Audit Quality Professional Practice department that are finalized as a percentage of total financial statement audit engagements during the reporting period.
Number of restatements due to material errors as a percentage of the total number of audit opinions (both legal and non-legal)	The number of financial statements where KPMG performed the audit in the previous year and in which a misstatement was identified (after issuance of the audit opinion) that has a material impact on the financial statements and which require a retrospective correction in next year's financial statements as a percentage of "the number of issued auditor's reports."
Number of restatements due to fundamental errors - 362.6 BW2	The number of financial statements with fundamental errors, whereby the financial statements in which the errors were made were audited by KPMG.
External independence violations as a percentage of total headcount	Number of externally reported violations of personal and engagement independence rules as a percentage of average total employee headcount during the reporting period.
Breaches of internal independence rules (not resulting in an external violations) as a percentage of total headcount	Breaches of internal independence rules reported internally, not resulting in an external violation as a percentage of average total employee headcount during the reporting period.
GPS survey results related to audit quality	Positive responses to GPS questions ("strongly agree" and "agree" on a five-point scale) relating to quality as a percentage of total responses by employees who indicated in the survey that they worked on audit engagement in the reporting period.