Download - KPMG Sustainability Report 2018 · KPMG Sustainability Report 2018 Author: KPMG Services Pte. Ltd Subject: A Sustainable Future. Delivered Together. Keywords: KPMG Sustainability

KPMG Sustainability Report 2018A Sustainable Future. Delivered Together.

Contents► Leadership 3

► People 10

► Clients 23

► Community 30

► Appendix 41

KPMG Sustainability Report 2018 • 3© 2019 KPMG Services Pte. Ltd. (Registration No: 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Leadership

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Steadfast in purpose, true to our values

We are custodians of public trust – this has never changed. It is with this clear purpose that each of us comes to work every day with pride.

However, we are now held accountable to higher standards than ever before in the discharge of our responsibilities. In 2018, our industry was faced with negative headlines in Singapore and around the world. We experienced, firsthand, heightened scrutiny from stakeholder groups around our ability to deliver consistent quality. This scrutiny we received comes with the territory. It is

something that we need to accept and embrace as part of our profession.

The massive public visibility of each high profile corporate failure masks the reality of thousands of engagements that were delivered to the highest quality. The erosion of confidence, whether real or perceived, has tremendous impact on the business world, and is a matter none of us can afford. Faced with disruption arising from technology, climate change and social expectations, it is more important than ever for us to remain steadfast to our purpose.


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How do we then face up to this challenge?

There is only one way we can deliver a sustainable future together. At KPMG in Singapore, we believe that the courage of conviction should be driven by the tone at the top and built intrinsically into our people’s DNA. I want to emphasise that quality is a journey, not a destination. We believe we have the right people and robust processes, but we must keep raising our standards. This is our strong commitment and promise to you.

Ong Pang ThyeManaging Partner


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Our Blueprint for a Sustainable Future

KPMG in SingaporeAcross the network, KPMG professionals lead with commitment, passion, and purpose in order to deliver differentiated, more successful outcomes.

This means serving the public interest in our every decision and instilling confidence in the capital markets. With trust as the foundation,

we combine the best thinking from KPMG professionals across the network, with investments in innovative solutions and technology platforms, so that insightful approaches and advice can be brought to clients whenever and wherever needed.


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Building Public TrustWe are focused on a collective strategy that starts with a relentless focus on building trust.

Our PurposeWe have also articulated a clear purpose to inspire confidence and empower change –that KPMG professionals do the work they do, not only for the benefit of clients but broader society as well.

Our ValuesThe way we work is guided by our values –the fundamental tenets we believe in, that are reinforced in everything we do.

CollaborationKPMG member firms collaborate around the globe, addressing the needs of clients, making bold decisions on investing together and serving the needs of our people, wherever they work.

Values

Building Public Trust

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About UsKPMG is a global network of professional services firms providing audit, tax and advisory services. Our global network consists of 207,000 people in member firms across 154 countries and territories.

In Singapore, we have a workforce of over 2,900 people. Our clients include business corporations, governments and public sector agencies, and not-for-profit organisations.

KPMG in Singapore draws guidance from policies set by KPMG International’s key governance and management bodies, including the Global Council, Global Board, Global Executive Team and Supporting Committees.

As at 31 December 2018, KPMG in Singapore has 112 partners.

The Managing Partner is an executive position supported by the Operations Committee. The Operations Committee comprises senior representatives from KPMG’s various functional areas and market segments. The Operations Committee representatives are responsible for the leadership of the respective market segments. They set and manage the strategic direction and progress of their segment of area of responsibility within KPMG.

Read more in KPMG Singapore’s 2018 Transparency Report.

https://assets.kpmg/content/dam/kpmg/sg/pdf/2019/01/our-relentless-focus-on-quality.pdf


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KPMG International structure and governance

Global CouncilAll member firms (without sub-licensees)

Global BoardGlobal Chairman, 3 Regional Chairmen, and other members (maximum 28 members)

Global Management TeamGlobal Chairman; Head of Audit, Tax and Advisory; Quality, Risk and Regulatory; People; Clients and Markets; New Business Innovation;

Technology and Knowledge; Global Chief Administrative Officer; Global Chief Operating Officer; General Counsel

Executive Committee

Governance Committee

InvestmentsCommittee

OperationsCommittee

Quality and Risk

Management Committee

Audit Quality Committee

Professional Indemnity Insurance

Committee


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People

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Living our values, building trust

While our core values determine how we interact, it is the everyday behaviours that are the tangible demonstrations of our commitment to live up to these values. It is not sufficient to pay lip service - our people have shared how important it is for them to experience respect, working together and leading by example in the workplace. To this end, we make extra effort to ensure that even small actions communicate these values.

Through the small actions, we build a culture of trust which enables us to attract the right people, develop and engage them to bring out their best.


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AttractWe want to attract people with the right skill sets, but more importantly, the right values.

Highlight What it does What we achieved in 2018

Universum’s Most Attractive Employers in Singapore Survey 2018

• Measures a business’ ability to attract top talent.

• Emphasises KPMG’s Global Behavioural Capabilities (GBCs).

• Ranked sixth and named one of most attractive employers in Singapore for business and commerce students.

Purpose & Values workshop

• Emphasises the KPMG Core Values and our strategic thrust of maintaining public trust.

• Incorporated Purpose & Values workshop in all on-boarding programmes.

SkillsFuture Employer Award

• Builds a culture of lifelong learning in the workplace, led the way in championing employees’ skills development and building a culture of lifelong learning in the workplace.

• 2,694 unique learning events (including face-to-face sessions, online learning etc.)


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DevelopWe want to grow, retain, nurture and future-proof our talent.

Highlight What it is What we achieved in 2018

Singapore CharteredAccountant Qualification Programme

• 1st Accredited Training Organisation recognised by the Singapore Accountancy Commission (SAC).

• Largest number of candidates among the Big 4 accounting firms in Singapore who sat for the Singapore Chartered Accountant Qualification examinations.

• Average pass rate of KPMG candidates was 72%, in comparison to the national pass rate of 65%.

• KPMG candidates outperformed in the Assurance and Taxation modules by 12% and 8% respectively.

Global Secondments • Global mobility programme, GO (Global Opportunities), offers temporary assignments and aims to develop broad-ranging skills and knowledge.

• Sent outbound secondees to other KPMG member firms in over 10 countries and welcomed inbound secondees from KPMG member firms.


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Organisational Health Workshops

• Helps to build a healthier organisation through developing clarity, alignment, collaboration, openness and trust.

• Engaged organisational health experts, The Table Group, to run workshops with our partners to help them commit to changing the way they work in order to build a healthier firm.

• The Table Group also ran a session for our leadership and management teams to encourage them to work together in improving our organisational health.

Cyber Security Associates and Technologists (CSAT) Programme

• KPMG is a CSAT Training Partner under the CSAT Programme, a joint initiative by the Cyber Security Agency of Singapore and Info-communications Media Development Authority of Singapore.

• Trained and up-skilled engineering and information and communications technology professionals for cyber security job roles.

• Hired Singaporeans who are keen to specialise in the field of cyber security and in doing so, contribute to the quality of the local talent pool in the cyber security industry.


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EngageWe strive to engage our multi-generational workforce who want to feel they belong. In addition, we work at communicating major operational changes and key announcements to our workforce in a timely manner.

Global People Survey (GPS)

• GPS is our primary measure of engagement with our employees.

• Conducted annually in all KPMG member firms by an external consultant.

• Developed and implemented action plans in response to the survey feedback.

• High level of staff participation in the 2018 survey.

• Majority of staff said that they felt engaged.

• Increase in ratings for most of GPS categories, including the key areas of Leadership, Communication, Recognition and Sustaining Energy at Work.

• Increase in the number of staff responding to saythat they have seen significant action taken as a result of previous surveys.

Quarterly Senior Management Group Updates

• Webcasts for partners, directors, associate directors and senior managers to hear updates on key issues and the firm’s strategy directly from the Managing Partner commenced in February 2018.

• Improvements observed for GPS scores relating to leadership, communication, strategy and vision since the launch of webcasts.


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Millennial Advisory Group

• Group comprising 22 millennials from different member firms including Singapore.

• A Millennial Advisory Group was formed, which played an important part in the proceedings at the biennial International Partners' Conference (IPC), held in Singapore in September 2018.

• The group took on many responsibilities, such as providing their views on themes and approaches, presenting content, co-running workshop discussions, and acting as digital advisors to the delegates (many of whom were senior partners and leaders).

Recognition Awards • Awardees were determined by feedback received via the Client Insights online surveys sent to clients by the Client Care team.

• A total of 85 teams, or 376 staff and partners, were named Service Champions in 2018 and recognised for delivering excellent service to their clients.


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KPMG ClubhouseIn October 2018, the revamped KPMG Clubhouse, our very own resident staff lounge, reopened. In line with our values, collaboration was twinned with innovation. The Clubhouse was conceptualised using design-thinking, where the views and ideas of different groups of staff were sought and built upon. The end result is 5,000 square feet of futuristic yet welcoming chill-out space which is wired with the latest digital technologies – a space where staff can be proud to host meetings, work quietly, or to party together after-hours.


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The future is inclusiveAt KPMG in Singapore, we are aligned to our global targets for diversity and inclusion. Our equal opportunities policy is in line with KPMG's global commitments to our people. We seek to provide a workplace that is free from discrimination, harassment, misuse of substances and unsafe conditions. And we are committed to the retention of working parents, active recruitment of foreign talents and improvement on inclusion initiatives to help foreign talent assimilate.

79%

21%

Singaporeans & Permanent Residents

Foreign

Employees in Singapore

87.5%

12.5%

Partners


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Employees by employment contract

Permanent Employees Temporary Employees

53Male

55% 45% 46% 54%

1,279Male


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New employee hires during the year

Gender

479Male

47% 53%

Age Group

77%

21%

2%

13> 50 years

77% 21% 2%


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Age by employee grade

Employees

54%

40%

6%

176> 50 years

6%

Management Group

11%

80%

9%

87> 50 years

9%

Professional Staff

82%

17%

1%

19> 50 years

1%

Administrative Staff

70> 50 years

34%


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Gender by employee grade

Employees

55% 45%

1,332Male

Management Group

47%

53%

49% 51%

483Male

Professional Staff

47%

53%46%54%

815Male

Administrative Staff

34Male

17%83%


Clients

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Delivering a Sustainable Future

There is trust placed in KPMG by investors, clients, regulators and the capital markets.

Our goal is to be the most trusted firm in our profession, and we hold ourselves accountable to the markets we serve, our stakeholders and the public. We do not take this trust for granted.

KPMG works closely with an extensive range of clients that includes the county’s leading businesses, government and public sector agencies, thriving entrepreneurs, enterprises and not-for-profit organisations. Regardless of client profile, we work hard to be a firm which is forward looking and well positioned to support our clients in navigating the changing landscape, anticipating their needs at every step of the way.

What our clients value• quality work

• strong technical expertise

• knowledge and insights


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First and foremost, we build trust through the quality of our work. As a baseline, all of the work performed by KPMG professionals must be carried out in a manner that meets regulatory requirements and professional standards. Leadership sets the tone at the top to pursue quality. However, personal accountability is critical for execution – hence, we ensure that everything we do is grounded in a culture that emphasises the highest level of ethics and integrity, where we hold one another to account for living up to the behaviours we expect, raising our hand if any of us sees something inconsistent with our values. We also institutionalise formal structures and processes to monitor quality indicators – these include the appointments of quality control reviewers and internal review processes.

We recognise the paramount importance of safeguarding our customer privacy. We have a set of comprehensive policies on information protection including information security, information classification, software

use, physical and environmental security, physical file management as well as intellectual capital and knowledge management. Annual training on information security and data privacy is also provided to our people to raise their awareness and understanding on these issues.

To uphold the high standards of our professional conduct, we have a Code of Conduct that sets out what is expected of our people and promotes a consistent KPMG. Moreover, we have zero tolerance for bribery and corruption. Our Anti-bribery and Corruption Programme includes detailed policies as well as training, compliance procedures and an international whistle blowing hotline.

Trust and Quality


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What our clients value• quality work

• strong technical expertise

• knowledge and insights

A global audit quality transformation programme was implemented to drive further enhancements to consistency and accountability across the world, and accelerate investment in tools and resources. That programme includes:

• Enhancing governance and accountability with the appointment of a Global Head of Audit Quality, expanding the work of our Global Audit Quality Monitoring Group and the setting up of a Global Audit Quality Committee, a sub-committee of KPMG International's Global Board, to oversee delivery and monitoring.

• Strengthening our system of quality control globally. Each firm's client acceptance and evaluation process has been tightened to ensure that there is more oversight, which in turn ensures that we work with the right clients.

• Improving our audit delivery platform to embed auditing standard requirements, methodology and guidance, and apply artificial intelligence in our audit to promote consistency and quality.

• Adding high-quality technical and specialist support for the audit teams and strengthening the second line of review, e.g. inflight reviews.

In line with this global thrust, we set up an Audit Quality Committee (AQC) in KPMG in Singapore. The AQC meets regularly to discuss complex issues, as well as challenge and review the many best practices and processes that have long been in place.

Firm-wide, we are working towards a single Quality and Risk Management Framework across Audit, Tax and Advisory. This framework addresses key elements such as

risk strategy and appetite, entity level instruments, cultural drivers, behaviours and performance. We recognise that the tone at the top drives organisational culture and that the aspects of risk assessment and response, control activities, information and communication as well as monitoring are crucial elements for success. Quality indicators are monitored regularly by the Function Heads, Risk Management Partner and the Oversight Committee.

Read more in the 2018 KPMG Singapore Transparency Report.

Governance Changes in 2018

https://assets.kpmg/content/dam/kpmg/sg/pdf/2019/01/our-relentless-focus-on-quality.pdf


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Innovating for quality and transformationInnovation is also essential to improving quality. In audit, we are investing in technology to improve consistency across engagements. We are also making greater use of data and analytics, introducing robotics into our processes and using real-time training and guidance with our professionals. In advisory, we help clients respond and digitally transform their businesses to create more future-ready operating models which are sufficiently adaptable and robust to address disruptions caused by new emerging technologies, shifting customer loyalty, climate change, resource scarcity, ageing populations and wealth distribution.

In 2018, we built on the 2017 global launch of KPMG Clara smart audit platform to introduce a new audit workflow.

KPMG Clara is deployed globally, and brings together our Data & Analytics capabilities, innovative new technologies and collaboration capabilities. This represents our ambition to transform audit execution for our people and clients through new, modern technology-enabled interfaces and collaboration functionality.

KPMG audit professionals are now further enabled to engage with clients like never before, delivering real-time communication and advanced insights through faster access to data and greater transparency into the audit processes. KPMG Clara enables us to incorporate new technologies as they emerge and mature; the platform is truly scalable. So as artificial intelligence, predictive analytics, machine learning and cognitive technologies develop, they will be integrated into the KPMG Clara platform to bring greater capabilities to all KPMG audit professionals.

KPMG Clara – Bringing it all together


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Ignition Centre – leading technology capabilitiesIn 2018, we set up the Ignition Centre, a physical space located within our office premises. At the Ignition Centre, we co-create solutions with and for our clients. This allows them to see and experience the firm's strategic capabilities in the areas of data & analytics and emerging technology including artificial intelligence, internet of things, blockchain and augmented reality (AR)/mixed reality (MR)/ virtual reality (VR).

We have hosted immersive sessions of AR/MR and VR at the Ignition Centre for a number of our clients. Through the centre’s curated cyber range facility, we also offer continual training opportunities for Information Technology professionals to learn how cyber-attacks are carried out, how to detect potential attacks and how to protect their own organisations.


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In July 2018, we inked a three-year collaboration agreement, a first in the professional services industry in Singapore, with the Agency for Science, Technology and Research (A*STAR), Singapore's premier science agency focused on deep research and innovation. Through this collaboration, both parties aim to translate research into solutions that will address real-world challenges. Other key areas of research include text mining, cyber security and human resource predictive analytics.

Under the agreement, KPMG started working with A*STAR's Institute for Infocomm Research. The first jointly-developed product, the KPMG Cyber Threat Hunting Tool, which is able to identify malicious and suspicious activities in an organisation's network by extracting and processing digital footprints, was launched in March 2019.

A*Star – deep innovation for transformation

With the rise of social media and changing stakeholder expectations, organisations can no longer afford to ignore the impacts of environmental, social and governance (ESG) issues to their business growth.

The newly launched KPMG Sustainability Institute allows clients to have access to the latest developments in ESG issues and provides clients with insights and solutions through webinars, research and a consultative platform.

KPMG Sustainability Institute


Community

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Doing the Right Thing, Doing Things Right & Doing GoodResponsible business practices contribute to inclusive development and sustainable markets, and are core to KPMG values and the principles of trust and integrity that underpin everything we do. At KPMG in Singapore, our community focus areas are lifelong learning, sustainable communities, being in support of disability and the low income sector.

“At KPMG, we are committed to making a difference in everything we do – for our clients, our people and society at large. This is what our people focus on and unite around every single day. Our focus on Citizenship efforts defines our commitment to improving communities and securing Public Trust as a leading corporate citizen.”

Lee Sze YengPartner, KPMG Cares


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Supporting the Sustainable Development Goals2 KPMG in Singapore Citizenship Priorities

Lifelong Learning • Inclusive Employment Initiative

• Cyber Security Awareness Workshop

Sustainable Communities • The Green Dot

• Global Climate Response

Low Income & Disability • Progressive Wages Programme

• Singapore Business Network on Disability (SBNoD)

• RISE Mentorship

2. For more information on the Sustainable Development Goals, please refer to https://sustainabledevelopment.un.org

https://sustainabledevelopment.un.org/


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LifelongLearning

KPMG Cares Inclusive Employment Initiative KPMG Cares Inclusive Employment Initiative empowers people with special needs by developing their talents through the learning of new skills. Participants of the Initiative come from the deaf community, or are persons recovering from mental illnesses. We support these individuals by involving them in projects that require their artistic skills, sponsoring their participation in hands-on classes, and commissioning their creations as gifts for clients and employees.

As part of our International Partners Conference in September, we collaborated with our partner social enterprise, Personalised Love (PLove), to design special edition door gifts for over 800 delegates, run hands-on workshops where delegates and their guests had the opportunity to learn from PLove beneficiaries, and host a bazaar alongside other charities and social enterprises.

In late 2018, we started developing a skills curriculum to advance the talents of

19 beneficiaries, including our first batch of KPMG Cares beneficiaries, PLove artisans and interns, and trainees from Grace Orchard School and Cerebral Palsy Alliance Singapore. Their training included acquiring new leather craft skills and techniques, attending photography workshops, and learning soft skills and developing their own e-commerce website.

Moving forward, in 2019, KPMG aims to bring more youths and adults to be part of the Initiative and to equip them with technical and vocational skills to better prepare them for employment and entrepreneurship.

The firm continues to engage with social enterprises and charity organisations and is working to raise awareness amongst our people, clients and business associates to promote responsible sourcing.

Read more at kpmgcares.com

We believe that lifelong learning and education for all can inspire the next generation of leaders, open gateways to opportunities both inside and outside of the classroom, and drive economic growth in our generation and for generations to come.


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Cybersecurity Workshops for StudentsWe recognise that cyber security awareness is more crucial now than ever before, especially for our youths who are the most vulnerable. We have tailored a curriculum to teach students valuable lessons on how to stay safe online and how they can champion the protection of their own personal data and online security.

In 2018, we followed up on the favourable response to our inaugural Cyber Day 2017, and delivered cyber security awareness workshops at three local schools, impacting over 1,000 students between the ages of 13 and 16 years. The workshops covered topics such as spamming and phishing, social media etiquette, online shopping and cyber gaming.

Building trust with the public is a key focus for KPMG, and empowering our future leaders is a positive way of doing this. In 2019, the programme aims to reach out to over 4,000 students in 8 schools.


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We are committed to reducing our impact on the environment. Sustainability is an essential component of KPMG’s business strategy. Our responsibility to communities and the marketplace drives us to implement sustainable principles, which adds value for our clients and reflects the values of our professionals. As a firm, we aim to develop new approaches to account for natural and social capital.

2018 saw the launch of The Green Dot portal, a zero-waste sustainable living initiative. The platform shares information on eco-friendly ideas, provides green tips for staff to put into practice at work and at home, and highlights events for participation.

Led by a committee of Green Volunteers, a green bazaar, where eco-vendors offered reusable products for sale to our staff, was held in April in conjunction with Earth Day. As a sign of our commitment to reducing waste generation, we introduced recycling bins firm-wide, placing them strategically on every floor that the firm occupies.

In 2019, we will introduce e-waste disposal options to help ensure that such waste is dealt with responsibly and without harm to our environment.

Sustainable CommunitiesKPMG is committed to reducing our impact on the environment, addressing environmental challenges, and helping our people and clients advance environmental sustainability.


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Global Climate Response KPMG’s Global Climate Response (GCR) was developed to help ensure that across the KPMG network, we actively work to reduce the environmental impact of operations, adopt resource-efficient practices and technology, and meet the expectations of our clients and the communities in which we operate. The GCR is aligned with the UN Sustainable Development Goals.

PHASE 1: 2010 – 2015The target set for KPMG in Singapore was to achieve an 8% reduction in net carbon

emissions (against a 2010 baseline) per full-time employee (FTE) by the end of 2015. We significantly exceeded the target by achieving a 27% reduction in net carbon emissions per FTE.

PHASE 2: 2016 – 2020The target set for KPMG in Singapore is to achieve a 15% reduction in net carbon emissions (against a 2016 baseline) per full-time employee (FTE) by the end of 2020. In 2018, our carbon emission intensity increased to 3% due to an increase in air

travel emissions. The increase in air travel emissions were a result of an increase in Defra 2018 air travel emission factors and air travel miles for long haul flights.

Decrease in paper usage was made possible through sustainable choices and internal policies to use paper only when needed. Our initiatives included responsible energy use and supporting our staff to make sustainable choices through the Green Dot initiative.

1.97 1.97 2.03

2016 2017 2018

Carbon Emissions (tCO2 per FTE)

Paper Usage

315sheets per person

per monthsheets per person

per month

2017 2018

274

13% paper reduction in 2017 - 2018


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Progressive Wages Programme (PWP)It is KPMG’s policy to actively manage lower-end wage policies to reduce the proportion of such employees. In 2017, we identified 0.9% of our employees who received an average monthly income below S$2,000. We enrolled them in various courses to help them upskill, and also redesigned their jobs. In 2018, we successfully reduced the number of staff earning below S$2,000 (excluding overtime wages) from 22 to 10.

In 2018, our increment for staff earning below S$2,000 ranged from S$90 to S$140, higher than the National Wages Council’s recommendation of S$50 to S$70. With these steps, the firm is on track to having all staff in the firm earning above S$2,000 by July 2019.

In Support of the Differently-abled and Low Income Groups We support our communities to ensure that nobody is left behind. Our programmes not only help the voices of the differently-abled to be heard; they are also a learning platform for us as a firm to help integrate people with disabilities into our society. With the help of our staff, we uplift the differently-abled through upskilling workshops and redesigning of job scopes.


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Singapore Business Network on Disability (SBNoD)The SBNoD, of which KPMG in Singapore is proud to be a founding member, is a community of businesses in Singapore across various industries which collaborate to help advance the equitable inclusion of persons with disabilities by sharing expertise, experience, networks and resources.

We recognise that the network reflects the diverse communities in which we operate, and that there are opportunities, through active engagement and dialogue, for us to take progressive steps toward a more inclusive society.

As a partner of organisations in the public, private, and non-governmental organisation/civil society sectors, we have a deep appreciation for the transformative power of cross-sector partnerships to create a world that is more prosperous, inclusive, sustainable and resilient.

KPMG in Singapore and the rest of the network launched the SBNoD website in 2018 to create more awareness of the abilities of the disabled and to encourage participation and support of companies in Singapore.

RISE Mentorship Programme by SG EnableRISE Mentorship is a 12-week programme where youths with disabilities are matched with business leaders from corporates, MNCs, and other inclusive employers. KPMG in Singapore supports this programme by encouraging upcoming KPMG leaders to participate as mentors, and in so doing, help deliver lifelong learning capabilities, while building public trust.

Through the programme, the students gain a better understanding of their skills and abilities, build professional networks, and tap into their mentors’ wealth of knowledge and work

experience.

With the focus on building leaders for tomorrow, our KPMG mentors have sought to make a difference in the students’ lives by sharing their experiences openly. KPMG in Singapore has successfully provided internship and employment opportunities for RISE mentees. In 2018, our senior leadership mentored three bright young men, two of whom also interned with us, and the third joined the firm in 2019.

https://www.sbnod.com/


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Give TimeClient work and community service complement each other. We encourage our employees to take up to 40 hours of Give Time leave per year and play a more active role in community service. In this way, they contribute their skills, time and efforts for causes that they are passionate about.

In 2018, our full-time staff clocked in close to 8,000 hours volunteering with a community of their choice both within Singapore and internationally.

Shared Services for CharitiesWe contributed 1,850 pro bono hours to support the Shared Services for Charities, a not-for-profit organisation. By combining our skills and experience with a sense of purpose and values, we can realise our full potential as a firm and accomplish great things.

Our Volunteers in ActionKPMG is committed to improving the communities in which we work, through active involvement, advocacy and investment.

KPMG Day & Make a Difference Day (MADD) MADD is an initiative firmly embedded in our firm’s annual event calendar and represents collective volunteerism, where departments within the firm dedicate a day to spend with beneficiaries of selected Voluntary Welfare Organisations.

8 June 2018 saw our first KPMG Day, where the entire firm came together at a huge carnival in the name of sports, friendly competition, family fun and our community. Some teams held their MADD activities on that day as part of KPMG Day. During the carnival, KPMG staff and their families participated in inter-function sporting events, while having the opportunity to mingle with our charity and social enterprise partners through carnival activities and hands-on workshops.

In 2018, through KPMG Day and MADD, over 13,200 hours were contributed to the community by employees.


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Disaster Response In times of need, KPMG in Singapore provides disaster relief support to aid communities displaced by crises and disasters. In October 2018, the firm united to host a fundraiser to lend a helping hand to communities affected by natural disasters in India, Indonesia and Philippines. Collectively we raised SGD$30,000 that was distributed equally to the three nations.

Giving MonthNovember 2018 was KPMG in Singapore’s month of giving, which we demonstrated in many ways:

• Give Life x Singapore Red Cross Society – Close to 90 staff gave blood in this blood donation drive to help replenish the depleting stock in Singapore’s blood banks.

• Give Smiles x BloomBack – Staff participated in a flower arrangement workshop conducted by BloomBack beneficiaries and made bouquets that were donated to St Andrew’s Community Hospital patients.

• Give Hope – Staff brought pre-loved items from home as part of this donation drive. The items collected were donated to Dignity Mama Stall, Ang Mo Kio Family Service Center, and Greensquare.

• Give Support – Through a do-good bazaar, we were able to support various causes through charities and eco-vendors such as TOUCH Community Services, Habitat for Humanity, Muscular Dystrophy Association Singapore, and Neis Haus.


Appendix

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KPMG’s GRI Standards Methodology Adoption Process

Stakeholder Engagement ApproachOur stakeholders are crucial to our success and expect our actions to be reflective of a responsible organisation. Our key stakeholder groups are:

• Our People - We recognise that our people are unique individuals with diverse strengths, and they are encouraged to discover their personal purpose at work. We place significant emphasis on developing, motivating and equipping them with the right tools and skills.

• Our Clients - Our clients expect us to add credibility, share insights and provide innovative solutions. Thus, it is crucial to deliver quality work and enhance the experience that our teams provide to our clients.

• The Community - Our purpose is to inspire confidence and empower change by investing in and improving the communities with whom and within which we work.

Our regular and ongoing communication with our key stakeholders allows us to understand their concerns and address their needs. Insights gained from such interactions are incorporated into our business strategy, as well as our reporting.

Materiality Determination ProcessIn order to identify the sustainability focus areas of importance to us, we undertook industry research and conducted internal dialogues with key stakeholders.

We identified the material topics and their boundaries, which we report on based on the GRI Standards for defining the report’s content.


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Stakeholder Engagement

Stakeholders Engagement Methods Frequency Key Concerns

People • Global People Survey• Informal online forum, “KPMG xChange”• Business strategy updates and townhall sessions• Annual performance reviews• Training and development programmes• Support and interest groups• Recreational events and activities

• Annual • Ongoing • Ad-hoc • Annual • Ongoing • Ongoing • Ad-hoc

• Clear leadership and sense of purpose• Communication and recognition• Talent building and continuous learning• Sustaining energy at work

Clients • Dedicated teams to service each unique and individual client

• Networking events• Post-engagement survey• Seminars and conferences

• Ongoing

• Annual • Ad-hoc • Ad-hoc

• Relevant solutions and technical expertise• Pursuit of excellence• Industry and thought leadership

Community (Professional and Social)

• Participation and representation in industry organisations/bodies

• Community investments and outreach programmes• Employee volunteerism• Public feedback channels

• Ad-hoc

• Ad-hoc • Ad-hoc • Ongoing

• Transparency, strong governance and ethical business practices

• Contribution to national goals and needs


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Materiality Determination

Stakeholders Topics Boundaries

People • Employment• Training and Education• Management/Staff Relations• Diversity*

Within Organisation

Clients • Customer Privacy and Confidential Information• Market Presence• Technology*

Within and outside of Organisation

Community • Anti-corruption• Socio-economic Compliance• Citizenship• Local Communities*• Emissions*

Within and outside of Organisation

*Non-material topic


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External Initiatives & Association Memberships of International Organisations/BodiesIn addition to supporting community projects, our people contribute their knowledge and skills to a range of industry bodies and not-for-profit organisations. We have partners who serve on boards of national arts organisations, professional associations, education boards, and on the local council for green issues. The list of external initiatives and association memberships that KPMG in Singapore (through KPMG International) endorses are:

United Nations Global Compact (UNGC)

KPMG International is proud to be a signatory to the UNGC, a principles-based initiative that aims to influence the creation of a more sustainable and inclusive global economy. It is the world’s largest corporate citizenship initiative and its purpose is to demonstrate and build the social legitimacy of businesses and markets. By participating in the UNGC, we demonstrate our commitment to advancing the business agenda as an active corporate citizen.

International Integrated Reporting Council (IIRC)

KPMG International is an active participant within the IIRC in its work to promote integrated reporting to address the gap between reporting content and business value, with official representation by KPMG International, as well as involvement by KPMG partners and employees across the globe.

World Business Council for Sustainable Development (WBCSD)

KPMG International actively participates in the WBCSD and is involved in a variety of WBCSD projects. Our involvement focuses on the Social Impact cluster, where we participate on the board, in the Redefining Value work stream, the Greenhouse Gas Management team and the Future Leaders team.

World Economic Forum (WEF)

KPMG International is a Strategic Partner to the WEF, working with them to help shape initiatives, projects and task forces and to give intellectual guidance through the participation of our senior executives. KPMG International has a strong presence in Davos every year and regional leadership also participates in the Regional Summits that take place throughout the year.


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Enactus Enactus is a global non-profit organisation mobilising university students to make a difference in their communities while developing skills to become socially responsible business leaders. Enactus teams develop business projects that have a positive social impact over the course of a school year and compete nationally. Winning teams are invited to compete at the annual Enactus World Cup.

KPMG International has sponsored Enactus for over 18 years and is currently the Global Presenting Sponsor of the Enactus World Cup. With more than 2,000 students showcasing a host of inspiring projects that are transforming lives, Enactus is harnessing the power of entrepreneurial action to drive vital social enterprise projects.

One Young World

One Young World summit is a global entrepreneurial forum for young future leaders. Hailed as a “junior Davos”, the annual One Young World summit provides a global platform to develop, empower, engage and network with the best and brightest people – helping them to grow into socially responsible business leaders.

Human Rights KPMG International’s Human Rights Statement is in accordance with UN’s Guiding Principles on Business and Human Rights. The statement lays out our commitment to respect human rights within our sphere of influence and builds on our long-standing supportfor the UNGC.

Women’s Empowerment Principles

KPMG International is a signatory to UN’s Women’s Empowerment Principles, a set of principles for business that offers guidance on how to empower women in the workplace, marketplace and community.

Women Corporate Directors (WCD)

WCD is the world’s largest membership organisation and community of women corporate board directors. Members serve on more than 8,500 public and private boards around the world. WCD has been instrumental in training women for board service, providing board opportunities, and facilitating introductions to nominating committee chairs around the world. KPMG is a sponsor of WCDglobally and in Singapore, and the Singapore firm actively leads and manages programmes for the local chapter.


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GRI Content Index

GRI Standards (2016) Corresponding Sections / Notes Page Numbers

General Disclosures

Organisational Profile

102-1 Name of the organisation KPMG Singapore –

102-2 Activities, brands, products, and services

Leadership 8

102-3 Location of headquarters 16 Raffles Quay, #22-00, Hong Leong Building, Singapore 048581

–

102-4 Location of operations Singapore –

102-5 Ownership and legal form We are registered as KPMG LLP, KPMG Services Pte. Ltd, KPMG Corporate Finance Pte. Ltd., KPMG Consulting Pte. Ltd, KPMG Advisory Services Pte. Ltd. and KPMG Cares Limited.

–

102-6 Markets served Leadership 8


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102-7 Scale of the organisation Leadership 8

102-8 Information on employees and other workers

People - Part-time employees make up less than 1% of the work force 18-22

102-9 Supply chain The procurement system is decentralised for specific items and each business unit procures its own required items. KPMG has a Supplier Code of Conduct which guides us in the choice of suppliers. Almost all of KPMG in Singapore’s supplies are sourced locally as we value supporting local businesses.

–

102-10 Significant changes to organisation and its supply chain

No significant changes during the reporting period. –

102-11 Precautionary principle or approach We do not specifically address the principles of the Precautionary approach as the information is unavailable.

–

102-12 External initiatives Appendix – External Initiatives and Association Memberships of International Organisations / Bodies

45-46

102-13 Membership ofassociations

Appendix – External Initiatives and Association Memberships of International Organisations / Bodies

45-46


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Strategy

102-14 Statement from senior decision-maker Leadership 4-5

Ethics and Integrity

102-16 Values, principles, standards, and norms of behaviour

Leadership 7

Governance

102-18 Governance structure Leadership 8-9

Stakeholder Engagement

102-40 List of stakeholder groups Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Stakeholder Engagement Approach

42-43

102-41 Collective bargainingagreements

None of our employees are covered by collective bargainingagreements.

–

102-42 Identifying and selecting stakeholders Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Stakeholder Engagement Approach

42-43

102-43 Approach to stakeholderengagement

Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Stakeholder Engagement Approach

42-43

102-44 Key topics and concerns raised Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Stakeholder Engagement Approach

42-43


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Reporting Practice

102-45 Entities included in the consolidated financial statements

As our entities are limited liability partnership and private limited companies, we are not required to disclose our financial statements. Please see Notes on 102-5 for a list of entities included in the report.

–

102-46 Defining report content and topic Boundaries

Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Materiality Determination Process

44

102-47 List of material topics Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Materiality Determination Process

44

102-48 Restatements of information There were no restatements for the reporting period. –

102-49 Changes in reporting Appendix: KPMG’s GRI Standards MethodologyAdoption Process – Materiality Determination Process

44

102-50 Reporting period 1 January to 31 December 2018 –

102-51 Date of most recentreport

April 2017 –

102-52 Reporting cycle Annually –

102-53 Contact point for questions regarding the report

KPMG Corporate Citizenship Team [email protected].

–

102-54 Claims of reporting in accordance with GRI Standards

This report has been prepared in accordance with the GRIStandards: Core option

–

102-55 GRI content index Appendix: GRI Content Index 47-54

102-56 External assurance KPMG has not sought external assurance for this reporting period and may consider it for future periods.

–


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Topic-specific Disclosures Corresponding Sections / Notes Page Numbers

Economic

Market Presence

103-1 Explanation of the material topic and its Boundary

Clients 23-29

103-2 The management approach and its components

103-3 Evaluation of the management approach

202-2 Proportion of senior management hired from the local community

People 18

Anti-corruption


Clients 25



205-3 Confirmed incidents of corruption and actions taken

There were no incidents that resulted in significant fines or legal actions during the reporting period.

-


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Social

Employment


People 10-22



401-1 New employee hires and employee turnover


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Labour/Management Relations


People 10-17



402-1 Minimum notice periods regarding operational changes

Training and Education


People 10-17



404-1 Average hours of training per year per employee

An average of 11 training days per employee per year -


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Customer Privacy


Clients 25



418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data


-

Socioeconomic Compliance


Leadership and Clients 8-9, 25



419-1 Non-compliance with laws and regulations in the social and economic area


-

Ong Pang ThyeManaging PartnerT : +65 6213 2035E : [email protected]

Lee Sze YengPartner, KPMG CaresT : +65 6213 2257E : [email protected]

Ian HongPartner, Sustainability ServicesT : +65 6213 2438E : [email protected]

KPMG16 Raffles Quay #22-00 Hong Leong BuildingSingapore 048581T : +65 6213 3388F : +65 6220 9419

Contact Us

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

© 2019 KPMG Services Pte. Ltd. (Registration No: 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.