Kpmg P/S

Ledelsesberetning

FY23 was indeed a year filled with contrasts. The world is in turmoil, and we are experiencing war in both Europe and the Middle East, economic uncertainty, geopolitical shifts and groundbreaking technological leaps. These changes have the potential to reshape how we work and fundamentally alter our perspectives and actions. No one can tell how the way ahead is shaping up, and what we saw in 2023 was, once again, unprecedented.At KPMG, this uncertainty has of course affected us as well. Much like many Danish and international businesses, we have been anticipating and preparing for a potential slowdown on growth and on focusing on ensuring sustainable and responsible development. Despite the circumstances, in FY23 we achieved a total revenue growth of 9 % across Advisory, Audit and Tax. Overall, total revenue increased from DKK 1,365 million in 2021/22 to DKK 1,486 million in 2022/23.Looking into another unpredictable year, we will do our best to continuously adapt our strategy and align with reality, always making sure that we continue to inspire confidence and empower our people, clients and society to cope with unpredictability and set a course for real change.In the middle of FY23, we had a change in leadership where Morten Mønster stepped down as Senior Partner and CEO. Therefore I, Mads Raahede, have the honour to be addressing this Management’s review, as the newly appointed Senior Partner and CEO of KPMG P/S.Having been a part of the Leadership Team for two years, I am fully aligned with the task at hand. I am excit-ed about the opportunity to chart the course for KPMG P/S, championing our Multidisciplinary Model that spans Audit, Advisory and Tax. We are steadfast in our dedi-cation to delivering outstanding services to Denmark’s top-tier companies within energy, financial services, digital transformation, M&A transactions, ESG report-ing, compliance, assurance and more. We are pleased to announce a commendable overall Client Satisfaction Score of 4.35 out of 5 for FY23. Our clients’ satisfaction remains at the core of our mission, and we look forward to further enhancing our partnerships in the years ahead.Coming out of FY23, we are dedicated to show sus-tainable growth and proud to be a people-first company focusing on quality of life and quality of work. Together we make the difference.The people shape our companyAs a company, KPMG is still growing and in FY23, we maintained a diverse workforce comprising 45 different nationalities among our exceptional employees. Now more than ever we need to be inclusive, focus on well-be-ing and provide opportunities for personal and profession-al growth within fields that resonate with each individual. As an example, in FY23 we further enhanced our internal Ally groups to now consist of five groups : Parent Group, Gender Balance, Footprint Group, MindSpace and QueerSpace, our well-renowned group through many years focusing on creating an inclusive workspace irrespective of sexuality or gender. These groups are made up of passionate employees and supported by leadership. To continuously strive to do better, we launched our new Koach framework to further improve our people leadership. In a sports team, it is up to the coach to ensure that every player reaches their full potential, plays effectively with others and is given opportunities to develop. The same goes for our KPMG Koaches. Koaches are people leaders with the responsibility to develop and motivate. In FY23, we successfully trained more than 150 internal Koaches. After the training, 96 % of the partici-pants felt considerably more proficient in handling their daily tasks and navigating people leadership responsibili-ties more effectively. We also strive to have a positive impact on society. One way to achieve this is through our sponsorship of Team Rynkeby, for the sixth year in a row. No less than four of our employees chose to bike to Paris to support children with critical diseases. We recognise our respon-sibility to contribute to education and give back to socie-ty. In line with this commitment, we have sustained our partnership with Velkommen Hjem - an organisation that supports formerly deployed veterans in their transition back to a civilian life. We believe that some of these initiatives are the reason why 80 % of our people express that they are proud to work for KPMG and would recommend KPMG as a great place to work, despite the uncertain times. AI is starting to realise its full potential2023 showed us that AI is operational on a practical scale, and we are proud to continue being one of the leading advisors on building and implementing AI in Danish organisations, as well as serving as advisors to The Confederation of Danish Industry on AI’s impact on business and society.Bringing potential to life through digital transformation while maintaining trust is a true reflection of our way of thinking and working in KPMG. We challenge the status quo, while striving towards excellence in all we do. As part of the global KPMG network, we have officially joined the IBM Quantum network to further explore the potential of quantum computing. We have also expanded our global alliance with Microsoft to put AI at the fore-front of professional services.As another result of our tireless work with digital trans-formation, we are also pleased to note that our efforts and, more importantly, our exceptional talent within new technology have played a part in moving us up the ladder as a preferred employer among IT professionals. We will continue to help our clients unlock the potential of digital transformation, as it will continue to play a pivotal role in the success of businesses, both inside and across borders. As a technology, AI is also driving another agenda. We are proud to have partnered up with the organisation Women in AI, where we showcase some of the female frontrunners in this booming field. The seats are packed at the events, and we are delighted to be a central part of both the tech and equality agenda.Raising our voice on ESGAchieving net zero will be one of the greatest challenges in the 21st century, and young people have a vital role to play in driving climate action. Therefore, we launched our Leaders 2050 network in the spring of FY23. A profes-sional network led by KPMG for future leaders who have an interest in net zero and sustainability, with a focus on diversity and inclusion. The network’s mission is to equip the next generation with the skills, networks and purpose needed to drive towards a more sustainable future.We are currently hosting Leaders 2050 events and have ambitious plans for the upcoming year, including col-laborative initiatives with organisations such as the UN and with a focus on COP28. Our network expanded by more than 360 new members – all committed to making a change and providing a platform for knowledge sharing to ensure that we build the leaders of tomorrow. We look forward to growing the network in FY24.At KPMG, inspiring senior leaders to effectively address and drive the ESG (Environmental, Social and Govern-ance) agenda forward is a key priority for us. We therefore hosted two events in FY23 focusing on sustainable lead-ership which turned out to be some of the biggest ESG events we have hosted. Across Copenhagen and Aarhus, we inspired over 250 participants to engage in discus-sions on how to approach the new leadership challenges. We also embarked on an exciting new collaboration with FINANS, resulting in the establishment and success-ful launch of the FINANS IMPACT Award show. This pres-tigious event aims to recognise companies and organisa-tions that are truly making a positive impact in the realm of ESG. The inaugural award show exceeded expecta-tions, and we are thrilled to announce our commitment to replicating this success in FY24. Once again, we will be presenting awards in the categories of Climate, Social and Tech to honour those leading the way. In FY23, we were also one of the premium sponsors of Årets SMV, an award show that celebrates small and medium-sized companies in Denmark, also on their ESG impact within the category “ESG Frontrunner of the year”.Almost 10 years youngWe are a people business. Our people are our first and foremost asset. As a young company in Denmark, we are not weighed down by legacy and traditional ways of working. 2024 marks our 10th anniversary, and we look forward to celebrating the culture we have built together and the great progress we have made so far.We must venture into our 10th year with our purpose held high to inspire confidence and empower change. We will stay committed to building trust in the capital mar-kets and ensuring that we keep the momentum we have generated and carry it into the future. Positive growth and continuously advising, challeng-ing and focusing on our clients have been key through FY23. I am truly honoured and energised about the task at hand, and I look forward to taking KPMG to the next level. Thank you one and all in the KPMG family. You truly made a difference and made a challenging year another year of growth.Our global networkKPMG is a global network of pro-fessional services firms providing advisory, audit and tax services. We operate in 143 countries and have 273,000+ people working in member firms around the world. We work closely with a broad range of clients, such as busi-ness corporations, governments and public sector agencies and not-for-profit organisations. We support them in mitigating risks and exploiting business opportu-nities. We lead with a commitment to quality and integrity across the KPMG global organisation, bringing a passion for client suc-cess and a purpose to serve and improve the communities in which KPMG firms operate. In a world where rapid change and unprec-edented disruption are the new normal, we inspire confidence and empower change in all we do.In our constant strive toward creating an even better workplace, FY23 was characterised by a focus on both the internal and external aspects surrounding our people at KPMG – specifically regarding recruitment of new tal-ent and actively working on motivating, developing and empowering our colleagues.We are always working for a better KPMG and look for new ways of raising our standards. Our annual Global People Survey provides a clear indication of how well we are faring, and we are proud to have reached a response rate of 90 % in FY23. Listening to almost every voice and focusing on selected areas are the best ways to make sure we do better for the people at KPMG in Denmark.Introducing the Koach frameworkOne of the focus points from earlier years has been to further strengthen and educate our leaders in KPMG. As a result of this effort, we are very proud to have intro-duced the new Koach framework – KPMG’s version of a performance manager.This new framework marks a well-defined step up in terms of taking care of our employees and our people leaders over the longer run. Our Koaches are now better educated and actively engaged in the task at hand. Being a Koach comes with an expectation to continuously motivate and develop the Koachee. Being a people leader is not a role suited for everyone, and it is important to equally value both people leader and non-people leader roles.We are proud to have educated 150+ Koaches across our service lines ranging from Senior Consultant to Part-ner level through our specially designed course.I love the safe space that was created– KPMG KoachWe are delighted to report that the framework has proven to be highly successful, and 98 % agreed that they were satisfied with the quality of the course.We will continue to develop the framework and look forward to educating and upskilling more Koaches in the years to come to ensure that we have the best suited people to guide our employees through the next steps of their career.Bring your diverse passion to work At KPMG, Diversity, Equity and Inclusion (DEI) holds a prominent position on our agenda.We are proud to say that 42 % of all job applications we received in FY23 came from women. Overall, 40 % (FY22 : 38 %) of our employees are women, and we continue to focus on gender equality and inclusion so that all employees, regardless of whether they are men, women or non-binary feel welcome and respected. To increase the number of women working at KPMG, we launched an external campaign in September, casting our own employees, which highlights how we stand behind each other and how women can thrive and make a mark in their career with us.With the 45 different nationalities present at KPMG in FY23, we fully acknowledge that every employee is unique and embodies a wealth of passion, interest and skills that extend beyond their daily work. That is why we are mobilising the passion of our employees into our Ally groups – each group with its own focus and man-date.Ally groups at KPMG in Denmark• Gender Balance advocates for a KPMG that is fair and inclusive for all genders, and from which gender balance naturally emerges.• Footprint’s mission is to drive key initiatives that can help KPMG in Denmark reduce its carbon footprint, mitigate climate risks, promote biodiversity and adopt circular practices.• QueerSpace is KPMG in Denmark’s LGBTQIA+ com-munity that aims to drive change, promote equality for all and strives to create a better, safer and more inclusive work environment.• MindSpace’s initiatives concentrate on personal growth with a focus on personal mental well-being, positively influencing one’s professional life.• Parents are working on ways to ensure that life as a parent can go hand in hand with a successful career at KPMG.Through the groups, employees across functions, ages – our average age being 34 years old – and genders can contribute their thoughts and ideas to the ongoing devel-opment of KPMG. These groups are 100 % driven by the employees supported by a more senior advisory board.This year, the Footprint Ally Group hosted Earth week in April to bring more awareness on employees’ climate footprint and championed actions for implementing a greener future. Furthermore, the new Leaders 2050 network, a professional network led by KPMG for future leaders in all sectors, was launched in June. With 350+ members and counting, the initiative’s mission is to educate and develop the leaders of the future to ensure a greener and more sustainable future. QueerSpace also secured our participation in the Copenhagen Pride Parade in August, and we are the proud partners of Copenhagen Pride for the fourth year in row.We remain actively engaged in Above and Beyond and are thereby members of the Diversity Council, as well as Inspired Beyond Babies to ensure we support our employ-ees no matter the life stage or situation they are in.Ensuring a great startIn September, we onboarded 42 new graduates and 35 trainees across Advisory and Audit and received 1,234 applications. They kickstarted their career at KPMG during a week-long on-boarding trip to The Netherlands, where they were able to visit the KPMG headquarters and gain important insights on how to work together for better, but also on how to challenge our clients’ perspectives.However, we have decided to modify the Graduate Pro-gramme to make it available to all new junior employees, to provide a smooth start for all our junior new joiners at KPMG. The KPMG Challenger Academy thus ensures that junior new joiners receive the same training as previous graduates, with a focus on core consulting skills, audit foundations and personal development courses – no matter which month they started their career at KPMG. The KPMG Challenger Academy also fosters a better working environment, as it enables our colleagues to build a strong network, work across service lines and challenge the status quo. We are looking forward to launching the new initiative in the year to come.It is all about the talentOur ability to recruit the best people in the business is pivotal for our success. Therefore, we are very proud that our recruitment team was nominated as one of three finalists for DANSK HR’s “HR Prisen 2023”. This award celebrates the most outstanding HR departments in Denmark, and we were selected based on our new and improved recruitment process that enhances our focus on diversity, equity and inclusion. Despite not securing a win, we are proud to be recognised in the field and that our efforts are appreciated.As a part of the improved process, we have been even more focused on delivering a meaningful candidate expe-rience. We aim to be involved from day one in the recruit-ing process, reducing potential errors, battling uncon-scious bias and significantly boosting candidate diversity.In our efforts to attract more talents, we engaged in over 70 events and fairs during FY23. Additionally, we organ-ised numerous in-house events to provide prospective tal-ents with a first-hand experience of the KPMG culture and an opportunity to connect with our employees. Moreover, we continue our alliances with universities, high schools and student organisations, including collaborations with the Female Leadership Academy, and giving guest lec-tures at Copenhagen Business School. Our emphasis on promoting diversity among young women is also support-ed by our partnership with Women in AI, enhancing our focus on women working with emerging technologies. We are honoured that our initiatives are being recog-nised as we climbed 8 places among both IT and busi-ness professionals in the FY23 Universum ranking.All these efforts are more important than ever in the current and future recruitment landscape. Together with FSR – Danish Auditors, the Danish trade organisation of auditing, accounting, tax and corporate finance, we are fronting a common message in motivating young people to become auditors and focusing on the crucial role they play in the Danish society. The future lack of skilled auditors is a serious concern, and we take pride in doing our part to solve this issue that could potentially impact everyone.Looking ahead, the strategic focus will also be on retaining valued employees, with a keen eye on future growth expectations. We are proud to recruit people with various backgrounds within tech, engineering, business, economics and audit. As a company, we recognise the need to align with the expectations of the new genera-tions. This involves adapting to a heightened focus on flexibility and job security, recognising their significance alongside traditional factors such as remuneration and climbing the career ladder. We will continue to watch the trends closely and match them with our company needs and recruitment effort.Our valuesEveryone can create a good business. Big, blue and bland.Creating a great business. Now that’s a lot harder.That’s going to take you.Because it takes you to never stop learning and improving.Never settling for less than excellence because that’s just how KPMG people roll.Just as it takes you to think and act boldly.Add curiosity to your skill set. Be open to new ideas and people, and unlearn the old ways.Find the courage to chase the gold at the end of the rainbow.But that’s not enough. It takes you to do what’s right.That means no cheating and no shortcuts. Carry yourself – and your work – with integrity.This also means it takes you to respect others and draw strengths from our differences.Sounds like too much ? Well, don’t worry – at KPMG we do it together.In the end it takes you to do what matters.So let’s do this. Have fun while we build a stronger future together.Do it for better. For your colleagues, for the world around you – and for yourself.It takes you to make KPMG.There is no doubt that AI is fundamentally transforming audits, enhancing the quality of audits, and revolution-ising the way audits are conducted. One of the great advantages of AI lies in the empowerment of audit teams. Auditors are able to analyse and extract large amounts of data and automate routine tasks such as risk assessment and anomaly detection leading to stronger audit evi-dence, more efficient audits which in turn deliver compre-hensive insights to our clients and ultimately a strength-ening of the quality and trust in financial reporting. Therefore, we are also delighted that in FY23 we formed a strategic alliance with MindBridge to integrate AI into audits conducted by KPMG member firms world-wide. This collaboration will empower AI to play a more prominent role in our audits, particularly among our portfolio of large-cap clients, enhancing the detection of unexpected or high-risk transactions and thereby elevat-ing the quality of our audits. Nevertheless, we firmly believe that AI should support, not replace, human auditors. AI should be implemented with care, guided by ethics and transparency emphasis-ing the importance of having human professional judge-ment and scepticism in the audit process. As auditors, we continue to assume a vital role, collab-orating closely with our clients as they navigate the path to the future in a volatile world. By consistently making good use of the capabilities of evolving technologies, we not only ensure the delivery of high-quality audits and assurance engagements, but we also tap into our clients’ data resources to deliver additional value from the audit-ing process. Full support on the ESG journey With the implementation of the new sustainability reporting regulations, our commitment as auditors lies increasingly in providing assurance for both financial and non-financial information.For many companies, big and small, it is a new area with numerous requirements that can seem extremely complex and difficult to navigate. At the same time, many companies have limited knowledge and experi-ence in this field, which increases the complexity of the challenge. We are therefore very excited about helping our clients navigate the evolving landscape of ESG reporting and compliance. As ESG reporting often crosses borders, we have a close collaboration with our Nordic and Glob-al colleagues, ensuring we are well-equipped to offer services such as ESG assurance, sustainability reporting, supplier audits, ESG readiness assessments and compre-hensive advisory services.Our aim is to support our clients on their entire ESG journey, ensuring they are well-prepared for the future and can anticipate challenges, avoiding any unexpected surprises along the way. Nurturing a culture of belonging Given the historically elevated churn rates among audit firms, cultivating a profound sense of belonging is of great importance to our audit practice. Thus, our commit-ment to fostering belonging remains an ongoing priority, aligning with our core values of Together and Excellence. This emphasis has been instrumental in mitigating churn rates and ensuring stability within our teams, crucial aspects that are highly valued by our clients. Our Region West’s successful implementation of strat-egies such as reverse mentoring, integrating specialists into teams through a holistic 360-degree approach and local leadership initiatives serves as a testament to the direct correlation between fostering belonging and achieving sustained success, evidenced by our partner-ships with new clients such as RTX, Sanistål, Scandinavi-an Medical Solutions, Scada and Siemens Gamesa. As leader of KPMG West, encompassing Funen and Jutland, I have witnessed first-hand the power of fostering a sense of belonging within our teams. It is not just about reducing turnover ; it is about creating an environment where everyone feels valued, heard and integral to our collective success. This sense of belong-ing fuels our innovation and ultimately drives the exceptional service we provide to our clients.Mikkel Trabjerg Knudsen, PartnerEducation remains a cornerstone to us Equally important is our commitment to education. Achieving the status of a State-Authorised Public Accountant (SR) is a rigorous and demanding journey, both professionally and personally. In recognition of the challenges this path presents, we took a significant step forward last year by introducing the SR Academy. Our aim was clear : to empower our professionals with the knowledge and skills needed to pass the SR exam while maintaining a balanced life. The SR Academy offers a set of enhanced conditions designed to support our candidates on their journey. These include dedicated study time with Fridays set aside for learning, structured learning sessions, bi-week-ly exam training, an additional allocation of 20 study days for flexible use, and quarterly exam manuduction sessions. We have over the last years significantly increased the number SR candidates and the percentage of them passing the SR Exams. But our commitment to the development of our people does not conclude with exam success. We firmly believe that obtaining the licence to sign an audit report marks just the initial step on the path to becoming a successful auditor. Thus, our academy’s mission extends beyond the exam, focusing on diverse areas such as providing guidance in tax and business matters, nurturing personal development and provid-ing leadership training. As auditors, we recognise that growth is a continuous journey, and we are dedicated to shaping well-rounded professionals equipped to thrive in the ever-evolving audit landscape.Supporting female entrepreneurship As we focus on our own culture, we have also put the sup-port for another important matter on top of our agenda in FY23 : female entrepreneurship. We believe that empow-ering women in entrepreneurship is not just a matter of fairness ; it is an investment in a brighter and more inclusive economic future. Encouraging and supporting female entrepreneurs not only unlocks their potential but also leads to more vibrant and dynamic economies. Again this year, we have been heavily involved in sup-porting Tech Nordic Advocates which is the largest tech and startup ecosystem and women-in-tech community in Northern Europe. We are proud to actively participate in their accelerator programmes by providing mentors. In FY23, we also initiated a collaboration with Angella Invest, consisting of female angel investors, and together, we hosted events and presentations at their gatherings, creating a supportive environment for female investors. Our dedication to support female entrepreneurship through both sponsorships, partnerships and personal commitments among our people underlines our true commitment to foster diversity and inclusion in the business world and promote economic empowerment for women.I believe that the importance of female entrepreneurship lies in its ability to tap into a diverse range of talents, skills and perspectives that might otherwise remain untapped. Women entrepre-neurs bring fresh ideas to the table, develop new products and services and challenge the status quo.Katrine Gybel, Partner Celebrating Danish Tech start-ups and SMEs Our team in MidMarket is strongly engaged in work-ing with start-ups, scale-ups and SMEs as they grow and expand. Therefore, we also have a strong focus on acknowledging companies on their successes and on nurturing the eco-system through partnerships. For the second consecutive year, we organised the KPMG Private Enterprise Global Tech Innovator com-petition in Denmark, with the goal of selecting a rep-resentative for KPMG’s global competition. With this initiative, we aim to recognise the most rapidly growing and innovative technology companies, and in this year’s edition, Healthycrop.world became the Danish winner, earning the opportunity to advance to the global finals. Healthycrop.world specialises in the development of crops that exhibit natural resistance to fungal infections by harnessing the plant’s inherent defence mechanisms.Another of our important commitments is that we have proudly become a Premium Partner for “Årets SMV”, an award show that celebrates and honours the dedicated individuals behind the achievements of small and medi-um-sized companies in Denmark. What sets “Årets SMV” apart from other business awards is its unique focus on the people rather than just the outcomes. Through this partnership, we aim to convey our strong commitment to the SME sector, and we believe that the individuals responsible for these results deserve recog-nition and celebration. We look forward to being part of the award show once again in 2024 which provides us with an exciting opportunity to engage with inspiring role models in the Danish business community. Tailored audit and advisory services to the NGO sector Over the last year, we have also strengthened our com-mitments in regard to NGOs. NGOs engaged in devel-opment aid and emergency relief are currently facing increasing complexity and heightened expectations from their donors. To meet the demands for high-quality and efficient audits that align with these evolving needs and rising expectations, we provide audit and advisory servic-es tailored to their unique requirements. Our NGO Team comprises dedicated professionals who specialise in serving non-governmental organisations, particularly those receiving funding from entities like Danida and other international actors or governments, primarily for development assistance or emergency aid. Fostering the next generation of LargeCap auditors Strategic global alliances are integral to our operations, especially within our LargeCap practice, significantly enhancing the value we offer our clients. Our collaboration with partners like MindBridge, whose advanced analytics technology is integrated into our digital audit platform, KPMG Clara, exemplifies the transformative potential of these alliances. This integration empowers us to conduct thorough transaction analyses, enhancing the transparen-cy and effectiveness in our audit processes – particularly beneficial for clients handling millions of transactions. Moreover, our partnership with Microsoft has yielded a suite of pioneering solutions tailored to bolster our clients’ ESG initiatives. These solutions focus on deliv-ering data-driven insights and support, spanning from environmental impact tracking to the implementation of sustainable growth strategies. Innovation is therefore at the core of fostering the next generation of LargeCap auditors, facilitating broader and forward-thinking perspectives. The advent of new tech-nologies enables auditors to transcend limitations in data volume, enabling more comprehensive observations. With access to real-time internal and external perspec-tives, auditors can now approach assessments holistical-ly, adding substantial value to their clients. Investing for tomorrow’s challenges and opportunities We recognise that the transformative impact of AI is revo-lutionising the audit landscape. Additionally, the ongoing advancements in sustainability reporting requirements will reinforce our pivotal role as providers of trust. Regard-less of the eventual reporting standards, we acknowledge that ESG disclosures and data must be approached with the same rigor, quality and trustworthiness as financial data. Looking ahead, we are convinced that our audit profes-sionals will only continue to deliver even greater value to our clients and that our profession will continue to attract exceptional talents, further enhancing our collective jour-ney and commitment to society. Client case :Assisting Bitzer Electronics A/SSince August 2023, KPMG has assisted Bitzer Electronics A/S in the finance department with various tasks, including reviews, reports, budget follow-up and the like. In addition, KPMG is also assisting OJ Electronics A/S (subsidiary to Bitzer) in the finance department with tasks such as financial reporting, VAT, budgets, etc. Both in Bitzer and in OJ, KPMG consultants fill the roles of interim Finance Managers, stepping in and making a difference from the first day.I am very happy with the service provided by KPMG’s Interim Services division. Despite the unexpected departure of our controller five months ago, the KPMG consultant seamless-ly stepped in, managing monthly controlling tasks independently, without much handover. This allowed us to keep operations running smoothly, freeing up valuable time for us to focus on recruiting a new controller. The auton-omy demonstrated by the consultant has been a significant asset, sparing us from the need for extensive training or ongoing support.Silvia Petralli,Finance Director at Bitzer Electronics A/S In FY23, we continued our strong focus on placing technology and ESG at the core of our advisory services offerings. We have helped our clients transform their businesses by applying technology from our leading technology alliance partners and still focus on the people aspects of the transformation. To us, this represents real business value for our clients. Our advisory practice delivers a wide range of services within Deal Advisory, Risk Consulting and Management Consulting, and we provide services in many sectors such as financial services, energy and public. Earlier this year, we further improved the foundation for our advi-sory function as we implemented a restructuring of our Management Consulting business. The purpose of this has been to streamline our service lines and consolidate our knowledge to better serve our clients, minimise fric-tion and deliver on even bigger transformative projects. We have already seen the improved results on collabora-tion and knowledge sharing across our different areas of expertise and received great client feedback. Better collaboration is also fostered when we keep an open dialogue with our employees across all roles and service lines. We have therefore established our Adviso-ry Sounding Board to give voice to the younger genera-tion, advising our leadership on matters of importance, at every level in the organisation. Here we also embrace critique and truly value the engagement and positive feedback this initiative has received along the way. To us, it already confirms that innovation and progress thrive best when everyone is given the opportunity to contribute. Four key themes shone bright in FY23 and drove the demand and agenda set by our clients : AI, risk manage-ment, green transition and regulatory compliance.Revolutionising tomorrow with artificial intelligence In the realm of business transformation, the integration of AI and generative AI into the core of organisational operations is no longer a futuristic idea, and FY23 was a breakthrough year for our AI solutions and services. The competitive landscape is evolving, with AI-enabled enter-prises taking the lead in proactive market responsiveness and operational efficiency. Over the past financial year, the demand for both AI and generative AI has surged due to technological advancements and enhanced accessibility. Furthermore, it seems that the enthusiasm surrounding ChatGPT has led business leaders and decision-makers to embrace and prioritise the new technology. Companies are recog-nising the value and potential of integrating AI into their operations to drive innovation, optimise processes and gaining that important competitive edge. Our proactive approach in this domain, coupled with our strengthened partnership with Microsoft, has positioned us as a frontrunner and a trusted advisor for businesses keen on leveraging generative AI to achieve strategic objectives.Our trajectory is meticulously designed towards delivering state-of-the-art solutions, with a pronounced emphasis on aligning with broader societal themes with-in the ESG agenda, especially sustainability and inclu-sivity. The collaboration with Microsoft continues to be a pivotal part of this strategy.The increasing adoption of AI and generative AI is poised to nourish our growth within our NextGen opera-tions. With more accessible solutions and tools, organi-sations will increasingly seek to leverage the transform-ative potential of AI, and thereby amplifying the demand for our comprehensive suite of services and solutions within this field.Building trust through risk managementIn today’s businesses, trust is everything. In an uncertain, constantly changing environment, customers, employees and investors look for organisations they can depend on. Client case :Furthering Energinet’s green agendaOur advisory team worked together with Energinet to assist Energinet’s green transition. During FY23 our Advisory team has assisted Energinet on energy system analysis and on the maturation and execution of construction projects including natural gas, energy islands, hydrogen and CO storage.2From the perspective of an energy infra-structure and system operator, a wide range of capabilities such as regulatory, commercial, digital and technical are key to securing energy supply while building and scaling new energy value chains.Marianne Hansen,Head of Corp. Finance, EnerginetBut building and protecting that sense of trust requires every part of the organisation to work together to deliver a consistent, unified vision.Across our advisory services, we work with clients that acknowledge that governance, risk and compliance (GRC), cybersecurity, privacy and third-party risk management all play a key role in building and maintaining that trust. This is especially important as businesses are ramping up data collection, expanding the use of AI and machine learning technologies while embracing the ESG agenda.Over the past years, we are proud to have supported our clients in a landscape where the increasing regu-latory requirements have become a growing factor. A key challenge lies in defining a holistic enterprise-wide governance and organisational setup that can adopt and implement new additional regulatory requirements. In addition, it is necessary to assess the impact of this framework on the existing security and compliance position. Our Digital Risk team advises our clients on how to establish a well-defined operating model for GRC & integrated risk management. In relation to this, we have advised our clients to implement an Information Security Management System (ISMS) to achieve centralised and standardised ways of working with risk. The ambition is to increase security maturity by fostering transparency and implementing a policy and document hierarchy with clear and well-defined roles and responsibilities. This ensures that every process and every control are actively monitored. One of the key tar-gets for this is to be better prepared to adopt new com-pliance requirements and adjust for changes in threats.During FY23, we have delivered transparency through a well-defined GRC setup and enabled our clients to demonstrate that they can manage and control the regu-latory requirements and be fully compliant. Advising on the green transitionDuring 2022 and 2023, events such as the war in Ukraine and the energy supply crisis have emphasised the need for security of supply in the EU and globally. Stable and affordable energy remains key to the modern world. Our clients strive to balance the green transition at a pace where both fossil and green energy supplies can build up a safe infrastructure delivering energy everywhere it is needed. We are proud to continuously assist the ongoing green transition of our Danish public and private clients across the energy value chain.The transition to climate neutrality drives change with our clients as political ambitions and strategic business targets are shaped by governments, regulations and senior management. This change, however, also comes with high complexity. Fluctuating renewable power from sources such as wind and solar is scaled and introduced into the energy system, and technologies like geother-mal heat, hydrogen, battery storage, e-fuels and carbon capture and storage are developed and scaled to replace or compensate for the use of fossil fuels. In KPMG Advisory, we stand out in the market by build-ing competences specific to the energy sector, and we assist our clients in successfully navigating the complexity by addressing three main themes in the green agenda : regulatory, commercial and technical matters. During FY23, our work within these three areas has been exempli-fied on projects in relation to the Bornholm and North Sea Energy Islands, the Baltic Pipe natural gas pipeline, CO2storage or production and transportation of hydrogen.Amid the transition, we see our clients further develop transparent sustainability reporting, including climate impact reporting. In a European context, the Corporate Sustainability Reporting Directive (CSRD) is phasing in and driving substantial change to the operating models of our clients. We have played a vital role as trusted advi-sors by combining sector insight and capabilities within assurance, digitalisation and performance management to assist our clients on this journey.Based on the market’s ambitions to deliver substantial emission reductions by 2030 and net zero by 2050, we expect further demand for our services in the coming years. We will continue to expand our capabilities and plan for our own sustainable growth within the field. We are proud to be called upon for advice by our clients across the energy value chain when the green transition needs an operational boost.New regulation continues to fuel growthIn recent years, a significant portion of the projects in KPMG Advisory has been dedicated to assisting clients in the implementation of regulatory requirements. In par-ticular, the financial sector needs to comply with complex and important regulation, and the enhanced focus within the EU on further strengthening this sector and enabling the green transition will continue to fuel the growth. The main regulatory focus points for the coming years will be ESG reporting within the financial sector, which will also be a major driver for us at KPMG. The industry will also have a continued focus on strengthening the financial solidity of the sector as well as the increased emphasis on risk management capabilities. Many of these aspects relate to technology which includes imple-mentation of DORA, the AI Act and validation require-ments to control model risk management. During FY23, we have successfully focused our efforts on targeting some of the most significant financial insti-tutions in Denmark with the most complex needs for con-sultancy assistance and the highest transaction volume. In the coming years, we expect to dive even deeper into regulation and maintain this focus while exploring every opportunity – staying diligent and keeping our clients compliant.Assisting our clients to navigate in the complex tax land-scape is not only a tax technical challenge, but increasing-ly also a data and a governance challenge. The many new aspects bring forward new demands from our clients. We truly believe that trust is one of the most important measures of our success, not only during the past year, but every day in terms of what we are able to accomplish and deliver to those that rely on us the most. Trust is key to engaging our employees and crucial to continuous-ly attracting new talent. Our clients and the society at large continue to trust us when navigating complex tax matters that require us to work across borders and disci-plines to collaborate more closely than ever. Strong financial results in FY23 are proof of our extraordinary people, successful 360-degree mindset and agility.Navigating the complexities of tax landscapeAt KPMG Acor Tax, our 360-degree approach and our dig-ital mindset are fundamental to how we go to market and work together internally. This holistic approach fosters sustainable solutions and loyal clients, whom we support through all complexities they may face. We collaborate closely with organisations of all shapes and sizes across a broad range of tax and technology areas – whether navigating complex tax matters, getting ahead of future compliance requirements, driving processes and cost effi-ciencies, or rethinking the way in-house functions operate to drive better value. Our objective is simple : helping our clients pay the right tax at the right time, using our deep expertise and continued investment in technology. In the past year, we have seen a substantial growth in renewable investments with more investment operators in the market, which has made the competition in this area a bit tougher than we have seen before. The market demands a high level of specialised knowledge from their advisors to help them navigate the landscape. As a result of this, our cross-functional team of tax experts within Renewables has been assisting an increased number of clients within this sector, and we expect this development to continue in the coming year as well. Compliance Management and Transformation is a stra-tegic focus area for KPMG globally and a rapidly growing business in Denmark. Our Compliance Management and Transformation services are market-leading, and we have had several significant wins in the compliance transfor-mation area over the past years. These wins are typically 3–5-year contracts where we are transforming existing global compliance processes to achieve increased quali-ty, standardisation, insights and efficiencies. Our Tax Dispute Resolution and Controversy services are recognised as market-leading in Denmark both by our clients and according to the global tax publication International Tax Review. Whether the Danish Tax Agency(Skattestyrelsen) or a foreign tax authority raises a claim against one of our clients, our tax dispute resolution and controversy leaders are able to assist our clients to protect against, prepare for and resolve disputes with tax authorities. We help our clients take control of the dispute resolution process to get effective results both locally and globally.In the area for Indirect Taxes, the added interest on all VAT and excise corrections has brought significant changes and challenges for companies in Denmark throughout 2023. The new rules came into effect as per 1 July 2023, where it is no longer interest-free to be in non-compliance for VAT and duties. The rules have retrospective effect and interest will therefore also be calculated on retrospective declarations that cover old duty periods.In parallel with that, the Danish Tax Agency increased their focus on controls and audits in this area that affected many companies. Consequently, our Indirect Tax Team has been assisting a large number of clients in navigating this landscape and ensuring compliance within the area.Demand for talent, global digitalisation and employ-ees’ desire and need to work from anywhere require employers to rethink their future workspaces. Under-standing the future of work, including its opportunities of working from anywhere and recruiting talents in loca-tions that were not available before, underpins the need for a 360-degree perspective. Our Global Mobility team has worked closely with our clients to embrace their jour-ney while getting all the tax aspects right. In the Financial Services (FS) tax area, our market-lead-ing team is helping many of the largest Danish clients within banking, life and non-life insurance as well as asset management. The growing demand for regulatory compliance within the Financial Services (FS) sector also implies a significant increased focus on tax compliance within the sector where we have our highly specialised teams service our clients. Sustainability and ESG in TaxThe world is evolving. The growing climate crisis is driving increasing demands on businesses to implement sustainable initiatives and turn ESG into action.As national and international tax policymaking shapes behaviour towards a sustainable world, and with tax revenues being a key lever to deliver on the UN’s Sus-tainable Development Goals, tax is becoming a strategic governance issue for companies. Our cross-functional team of experienced professionals has also this year provided advice to a large number of clients on key tax and ESG focus areas such as environmental and climate-related taxes, tax transparency reporting, good tax governance in a responsible tax context, sustainable supply chains and our development and marketing of our Tax Footprint Analyzer. To support our clients in bridging the gap between tax and sustainability leaders, this year we hosted a flagship Sustainability and ESG in Tax event, where we explored the role a tax function can play for a sustainable future. For the second year in a row, we also launched our Nordic GRI 207 benchmark report disclos-ing the performance of tax disclosures for more than 100 companies across the Nordics. Digital Now. And tomorrow.Technology continues to evolve, shape and transform how businesses function and people interact. One of our key strategic priorities is to enable that our people contin-uously develop a digital mindset. We are in particular proud of the tailored programme prepared and facilitated by DTU (Technical University of Denmark) for our internal Digital Now ambassadors under the name Ready for the future − Digital technolo-gies and digital transformation. Digital Now is the name of our own internal tech journey, with focus on commer-cial mindset, tools and skills, making us fit for the future. The purpose of the course was to increase awareness of the new digital technologies and support the digital maturity of our business with focus on a) strengthening our digital understanding b) accumulating greater knowl-edge of digital technologies and the ability to navigate between them and c) gaining new insights into the pos-sibilities in relation to the development of smart services. The course was conducted by a strong interdisciplinary team from DTU of leading and in-demand researchers and lecturers in digitalisation as well as external experts from CBS and ITU. We will continue to enhance our tech-nology platform, enabling us to incorporate emerging technologies internally and externally.Business model KPMG P/S (“KPMG”) is a Danish approved state-author-ised public accountant firm that is operated by a limited liability partnership, owned by KPMG’s Danish equity partners. KPMG provides advisory and audit services to the Danish market. KPMG provides tax services in cooperation with the independent member firm KPMG Acor Tax Partnerselskab. KPMG does not deliver legal services. Legal services are delivered by the independent member firm KPMG Law Advokatfirma P/S. KPMG is split into two functions : Advisory and Audit. The Audit function delivers among others statutory audit of Danish entities, audit of reporting by Danish entities to foreign groups, other assurance reports, assurance services, accounting advisory services, ESG and interim services. The Advisory function delivers services within Manage-ment Consulting, Risk Consulting and Deal Advisory. At KPMG, we deliver most of the services ourselves or in cooperation with other KPMG member firms. External business partners such as sub-suppliers are used to a limited extent, and these are typically Danish entities. In addition, KPMG has some alliance partners which are also international KPMG alliance partners. These include among others Google, BluePrism, ServiceNow, SAS, SAP and Microsoft. As a state-authorised public accountant firm, KPMG is subject to regulation, where EU rules, local laws and auditing standards must be complied with. KPMG is sub-ject to external quality control from the Danish Regulator (Revisortilsynet). Being a member of the global KPMG network, we are obliged to comply with Global KPMG policies and procedures. KPMG’s culture and ethics have their roots in our international Code of Conduct. The essence of this is protection of the KPMG brand and the public trust, which mean our clients’, potential clients’, public authorities’ and society’s trust in KPMG. KPMG has a comprehensive quality management system to ensure this trust. For detailed description, we refer to our annual Transparency Report which is available at kpmg.dk. The consequence of focus on public trust is that KPMG is not a company that wishes to take great risks. In our view, our business model is not significantly exposed to risks related to environment, social matters and employee matters, human rights, anti-corruption and bribery. The operational risks facing our business include those we have in common with other professional services firms. These include notably a deterioration in market condi-tions, attracting, developing and retaining the best talent in the market, claims and reputational damage caused by either an actual or a suspected failure to deliver services of appropriate quality, or by taking on high-risk clients or engagements. Environmental matters, including minimising the climate impact of our operationsThe Global KPMG network of member firms has announced its intention to become a net-zero carbon organisation by 2030. This will see us : • Cut greenhouse gas emissions (directly and indirectly) by 50 % between 2019 and 2030, aligning with a sci-ence-based target to limit global warming to 1.5ºC.• Source 100 % renewable electricity by 2022 in KPMG’s Global Board countries, and by 2030 for the wider global organisation (including KPMG in Denmark). • Reduce consumption and waste (only purchase and produce what is needed).• Offset any remaining emissions which we cannot remove from our operations and supply chain by investing in externally accredited carbon removal projects. KPMG is committed to supporting the achievement of these goals through a rigorous approach, backed by the expertise of our in-house experts. To achieve these goals, we have in our facilities imple-mented various initiatives to combat climate change and support circularity and biodiversity covering : • Promoting responsible consumption (less meat in canteen, increased use of recycled materials in office supplies and eliminating single-use plastic products).• Increased recycling and reduced combustible waste through effective waste sorting.• Use of clean energy (electricity from renewable electricity at most of our offices and energy efficiency inspection performed by external party).• Priority parking for electric cars and use of electric taxis when possible.• Choosing organic whenever possible and maintaining the canteen’s Silver Organic Cuisine Label.KPMG wants to be at the forefront of climate reporting and in increasing recognition of the need for further expansion of renewable energy and uncertainty about the true impact of renewable energy certificates on the overall green transition, KPMG is aiming to enter into a Power Purchase Agreement (PPA) which will ensure that our electricity will come from renewable sources that contribute as much new green power to the electricity grid as we consume. KPMG has chosen to follow Energinet’s recommenda-tions to calculate all offices’ emissions according to the time-based calculation as recommended by Energinet (see pages 12–15 in the report “Miljøredegørelse 2022” on Energinet’s website : Forside > Mere > Energinets publikationer > Publikationer > Miljøredegørelse 2022) This means that CO emissions from electricity 2consumption at all our offices are included, despite the purchase of renewable energy certificates. This choice has been made in preparation for KPMG’s own work to secure new green power via a PPA that matches KPMG’s own power consumption. The results in FY23 stem from a combination of various ongoing initiatives, including updates to travel policies, preferred parking for electric cars, including electric car chargers, increased use of recyclable office supplies such as paper pens and less meat used per employee in our canteens. We have seen a decline in air travel, with a 26 % reduction in flight mileage compared to the previous year. However, there has been a slight increase in car mileage. This has had a positive overall impact on our emissions, and we strive to sustain this reduction as even more meetings can be held successfully online compared to pre-COVID-19 levels. We have upgraded our facilities with more and better digital meeting tools as well as supplying employees with working from home kits. With these upgrades, we expect to see a relatively reduced need for air travel and car mileage. In terms of recycling, our waste is separated into recyclable and non-recycla-ble waste, amounting to 23.9 tonnes (FY22 : 29.7 tonnes) of waste to non-recyclable and 34.8 tonnes (FY22 : 28.1 tonnes) waste recycled in FY23. Our waste initiative in our offices, where organic waste that otherwise would have been disposed of is separated and sent for gen-eration of energy, has been further expanded in FY23. This year we have worked actively to reduce the use of single-use products in our facilities and replace them with recyclable alternatives. All plastic bottles used in our premises are made of 100 % recycled plastic. We gener-ally work on replacing plastic products with non-plastic alternatives. We have also reduced the amount of paper used by 0.5 tonnes by reducing the number of copy/print-ing machines by more than 50 %, and at the same time we converted several printing/copy rooms into modern meeting rooms.In FY23, 17.6 tonnes (FY22 : 14.5 tonnes) of organic waste were reused for energy generation. Our water consumption across our 5 offices amounted to 4,576.90 m3 (FY22 : 4,153.91 m3 ). The increase compared to last year is mainly due to our overall increase in the number of employees. Going forward, learnings from remote and virtual working will continue to serve as considerations for maintaining lower level of emissions, in particular from business travel. Our relative carbon emissions (CO2per FTE) were 0.5 (FY22 : 0.6) tonnes of CO per FTE. 2Compared to the baseline year 2019, KPMG in Denmark reduced relative carbon emissions by 59 % (FY22 : 54 %). The significant relative reductions since the base year are a result of our combined efforts as described above. In absolute terms, our total CO emissions in FY23 were 392 2tonnes (FY22 : 401 tonnes). The decrease compared to last year is primarily attributed to a reduction in air travel.Looking ahead to the results of the coming years, particularly toward 2030, we are considering investing in externally accredited carbon removal projects to offset any remaining CO emissions. 2Social matters, staff matters and the upholding of human rightsKPMG is dedicated to continuously supporting and devel-oping our talent and attracting and retaining top talents to KPMG. We have a clear commitment to equality and to a culture that is free from discrimination whether based on nationality, race, ethnicity, gender, gender identity, sexual orientation, disability, age, marital status and reli-gious beliefs. We promote an inclusive work environment and employee well-being. Due to our commitment to KPMG International, we follow the UN Guiding Principles on Business and Human Rights. This is outlined in KPMG International’s Business and Human Rights Statement. We expect all our stakeholders, including our suppliers and clients, to respect human rights and to act if a human rights risk is identified. During FY23, we have continued to listen to our employees by asking them to speak up in dialogue with our leadership team, partners and colleagues. More formally, we asked them to speak their minds in our annual Global People Survey (GPS). Furthermore, we continue through our Nor-dic Learning and Development (L&D) training centre and local training to design, develop and deliver high-quality and innovative learning solutions, along with personal development programmes to all staff across the region.Starting FY23 and onwards, we have decided to include data on the number of reports received through our whistleblower hotlines (local and international), dis-closing the number of reports received during the year as well as the number of reports which were substantiated. We do this to increase the transparency on our business since it is key to us that everyone is living and behaving in accordance with our values and our Global Code of Conduct. We regularly conduct internal campaigns to all employees encouraging them to speak up, including how to report concerns in confidentiality and without any risk of retaliation. In FY23, we received a total of five reports, all of which were received locally. Out of the five reports received and thoroughly investigated, four of them were substantiated.KPMG´s Work Environment, Health and Safety (WEHS) organisation’s main objective is to plan, manage and coordinate KPMG’s efforts on our work environment, security, health and well-being. The organisation oper-ates as an independent entity across offices and with representation from both senior leaders and employees. Matters related to WEHS are raised directly with local representatives and dealt with on a discretionary basis locally. More general or national matters are raised and dealt with in the WEHS organisation’s leadership team, supported by external consultants. The group also over-sees the annual Workplace Assessment (APV), and shares guidance on how to optimise health, safety and well-be-ing in the workplace. In FY23, our WEHS organisation received one report pertaining to a work-related accident.At KPMG, employees report sick leave through the time registration system. In FY23, the reported sick leave, including both general and long-term illnesses, was 2.4 %. This equals to an average of 5.3 sick days per employee in FY23. Sick leave is evenly distributed between our offices, and compared to country averages in national statistics, KPMG in Denmark has has a rela-tively low level of sick days.We also drive various communities such as Queer-Space devoted to the LGBTQI+ agenda reminding everyone to have the courage to be themselves and embrace differences, and the Balance Initiative looking at ways of attracting and developing female talent as well as helping our employees to balance their professional and private lives. The Balance Initiative committee is especially dedicated to looking at new ways of attracting and developing female talent, focusing on a balanced recruitment at all levels, retention of talent and improving work-life balance. Our industry-leading Parent Growth programmes giving, among other things, equal rights to parental leave between parents, offering paid leave on a child’s third day of illness and covering pension pay-ments if the parents decide to prolong their leave with up to 13 weeks to help mend the “pension gap” between men and women. This year, we had a 76 % (FY22 : 79 %) engagement score in our GPS and an overall participation score of 90 % (FY22 : 89 %). Continued high scores on important areas such as Career Growth, Inclusion and Diversity, Trust, Well-being, Quality, Collaboration and Values show that we have a good degree of employee satisfaction. In FY23, we completed onboarding programmes, many professional developments, technical and soft skills trainings including our new Koach framework focusing on improving our daily people leadership. All our audit professionals have completed minimum 40 hours of edu-cation. To improve the well-being of our employees, in FY23 we continued to upgrade our facilities to new ways of working with more collaborative areas, quiet zones and meeting rooms. At the same time, we improved our Life Stage Pro-gramme, our health care system, were again partner of the Copenhagen Pride week and held various community events like Inspired Beyond Babies. Our whistle-blower function has been established and is designed to provide a safe space for employees to confidentially voice their concerns, free from the fear of reprisals. We encourage all those interested in applying for a job to apply regard-less of age, gender, sexuality, disability, race, religion or ethnic affiliation. In respect of gender, we have noted that 42 % (FY22 : 43 %) of the 4,388 (FY22 : 4,570) job applications we received in FY23 were from women. We welcomed 77 (FY22 : 104) new graduates and trainees, of whom 39 % (FY21 : 34 %) were women. By the end of FY23, we had 45 (FY22 : 45) nationalities employed. By the end of FY23, we had 40 % (FY22 : 38 %) women and 60 % (FY22 : 62 %) men employed. Our average age is 34 (FY22 : 32) years. On continuous basis, we are dedicated to keep strengthening our employee satisfaction, and we commit ourselves to doing so. We will continue to focus on improving gender equality and creating an inclusive space for all our employees at KPMG. We will work towards ensuring that all our stakeholders, including our suppliers and clients, respect human rights and we will take action if a human rights risk is identified. Fighting anti-corruption and briberyCompliance with laws, regulation and standards is a key aspect for everyone at KPMG. We have zero tolerance of bribery and corruption. Therefore, we prohibit involve-ment in any type of bribery, even if such conduct is legal or permitted under applicable law or local practice. Neither do we tolerate bribery by third parties, including by our cli-ents, suppliers or public officials. KPMG has formal criteria around permissible gifts, entertainment, charitable dona-tions and sponsorships, together with a mechanism for monitoring these. Our supplier agreement and third-party agreement templates include anti-bribery clauses. Everyone at KPMG is required to comply with the Global Code of Conduct (“Code”) and to confirm com-pliance with the Code when joining the firm and on an annual basis thereafter. Furthermore, everyone at KPMG is required to take regular training covering the Code. We are committed to holding ourselves accountable for behaving in a way that is consistent with the Code. KPMG personnel have been instructed to consult with our Risk Management Partner immediately for guidance if a diffi-cult situation arises. In FY23, we ensured comprehensive training for both new joiners and existing personnel in the Code, includ-ing KPMG’s anti-bribery policies, compliance with laws, regulations and professional standards and reporting suspected or actual non-compliance with laws, regula-tions, professional standards and KPMG’s policies (in FY22, we provided similar training to all new joiners and existing personnel). In FY23 and FY22, all personnel completed the above training. Furthermore, during FY23, we requested confirmation from all personnel that they have complied with their individual responsibilities under the Code, including compliance with firm policies related to gifts and entertainment, anti-bribery and corruption (in FY22, we requested similar confirmation from all per-sonnel). In FY23 and FY22, all personnel confirmed their compliance with the Code and the policies described above. On an annual basis, we conduct and document an annual assessment of bribery and corruption risks facing our firm. The assessment includes an evaluation of anti-bribery and corruption risk factors, mitigation and evidence of effectiveness (in FY22, we conducted a similar assessment of bribery and corruption risks). Our processes for client acceptance and engagement conti-nuity are designed to identify, evaluate and document any potential risks related to the integrity of the client management and their potential involvement in bribery and corruption. Additional approval procedures are in place when risks are identified. Our finance function has established monitoring procedures and internal controls to ensure compliance with anti-bribery and corruption policies. During FY23, no incidents were identified relating to the firm or personnel as part of the annual assessment of bribery and corruption risks facing our firm. Completion of the annual assessment is monitored by our Quality and Risk Management department (in FY22, no incidents were identified relating to bribery and corruption). No instances of bribery and corruption issues were identified during FY23 Client and engagement onboarding pro-cedures (for FY22, no instances identified as part of the client and engagement onboarding procedures). Engagement teams may, when performing engage-ments, identify suspicions of non-compliance with laws and regulations. These are dealt with by the Engagement Partner together with the Quality and Risk Management Partner in accordance with company procedures and, if required, reported to the authorities. During FY23, our Quality and Risk Management department monitored compliance with finance procedures established to ensure that KPMG Global baseline internal controls relat-ing to anti-bribery and corruption policies were adhered to (in FY22, similar monitoring took place). We commit to continuously improving our standards by monitoring compliance with anti-bribery and corruption policies of our personnel, clients, third parties and suppliers and take prompt action when non-compliance is identified.Deinition of non-inancial key performance indicators Measuring employee engagementOnce every year, we send out our Global People Survey to all employ-ees. The survey is delivered from a recognised third-party supplier. As part of the survey, we measure what we call the Employee Engagement Score. The Engagement score is a percentage score based on different questions within three overall themes, namely : 1. How engaged do you feel ? 2. How enabled do you feel ? 3. How energised do you feel ? The average percentage of the response to these questions results in the Employee Engagement score.Measuring CO2We have designed our greenhouse gas emission measuring methodology in accordance with the GHG Protocol. This internationally recognised stand-ard is the most prevalent and globally accepted method for calculating green-house gas emissions. For a description of the method, see the GHG Protocol website : ghgprotocol.orgMeasuring wasteWaste calculations for the period from October 2022 to September 2023 at our Copenhagen office have been determined based on the collected data provided by our supplier. It is divided into two categories : 1. Recycled waste – including glass bottles and glass containers, cor-rugated cardboard, iron and metal, containers of plastic or carton, sustainable frying oil, organic waste in packaging, mixed paper, mixed hard plastics, paper, and e-waste. Paper shredded has been account-ed for through our suppliers who calculate the amount of paper they collect and shred from the office.2. Non-recyclable waste – including combustible waste, landfill and non-combustible landfill waste.Measuring water consumptionWater usage data is reported from January 2023 to December 2023, reflecting a staggered reporting period distinct from KPMG. Water usage cal-culations for Aarhus, Aalborg, Frederi-cia and Odense are based on average consumption among renters.