ESG at KPMG: Harnessing Capitalism for a Sustainable Future

As businesses worldwide grapple with the challenges of climate change and sustainable development, KPMG is working with its clients to embed ESG and sustainability into wider decision making, tying sustainability and value for long-term benefit.

Based in the UK with a global reach, KPMG goes back more than 150 years and has three key business areas:

• Audit and assurance
• Tax and legal
• Advisory

What ESG means today

The concept of ESG has undergone a significant transformation in recent years. No longer viewed as a mere compliance exercise, ESG has become a critical driver of long-term value creation for businesses. 

"We talk a lot about long-term sustainable value creation,” says John McCalla-Leacy, KPMG's Global Head of ESG. 

“This isn't something which is short term - it's sustainable, it's resilient and it's robust."

This evolution in ESG thinking is particularly crucial in the face of mounting environmental challenges. 

As John points out, "The impact of climate change that we're seeing now is really stretching and testing the resilience and the robustness of many, many business models in businesses right across the world."

Harnessing capitalism for sustainability

At Sustainability LIVE Net Zero 2025, Gerard Gallagher, EY Sustainability Global Markets Leader said "sustainability has a new best friend, and it's capitalism." 

This notion, while potentially controversial, underscores a fundamental shift in how businesses approach sustainability.

"We're in this sort of time now where sustainability must be paired with value and must be bringing that in for a lot of companies to be able to be ironically, you know, sustainable long term," John notes. 

This perspective highlights the growing recognition that sustainable practices can drive profitability and competitive advantage, rather than being seen as a cost centre.

This alignment of sustainability goals with business objectives is reshaping corporate strategies and investment decisions.

ESG at KPMG

KPMG's approach to ESG is rooted in practicality and pragmatism.

"There is a need just to communicate more directly with people in a way which is free from political bias and in a way which is very easy to be consumed and understood," he explains.

The firm's strategy focuses on helping clients navigate the complexities of the sustainability landscape. John highlights the importance of clarity and practical solutions: "There's a lot of our clients, a lot of people out there are actually really needing help because they're just confused... We're swept up within that."

KPMG's ESG initiatives include:

• Facilitating dialogue: The firm organises CSO roundtables, bringing together leaders to share experiences and best practices.
• Practical guidance: John focuses on providing actionable advice during speaking engagements.
• Value-driven approach: KPMG focuses on linking sustainability to tangible business value.
  

"When we talk about things like decarbonisation, just being really clear about what are the opportunities that exist," John explains.

Sustainable sustainability

KPMG's vision for ESG extends beyond short-term gains, focusing on creating lasting, positive impacts. 

John emphasises the importance of resilience and robustness in sustainability strategies, particularly in the face of climate change.

The firm advocates for practical, high-impact solutions. 

"We do not need to complicate this. Quite often it's low-hanging fruit," John states. 

"It's things like having really clear strategic energy management systems because they're the single most effective measures to reduce energy demand."

KPMG's long-term approach to sustainability also considers the broader implications for various sectors. 

"Clearly that links to things such as the built environment,” John notes. 

“All of our clients are engaged with the built environment, whether it's just through offices or more complex factories and supply chains."

The road ahead

As the ESG landscape continues to evolve, KPMG remains committed to driving meaningful change through a focus on practical solutions, clear communication and long-term value creation.

By harnessing the power of capitalism for sustainable ends, companies like KPMG are paving the way for a more resilient and environmentally conscious business world.

As businesses navigate the complex terrain of ESG, KPMG's approach offers a blueprint for turning sustainability challenges into opportunities for growth and innovation. With a focus on tangible results and long-term impact, the firm is helping to shape a future where environmental responsibility and business success go hand in hand.

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