KPMG launches socio-economic background pay gap report in collaboration with the Bridge Group

10 September 2021

KPMG has published a firmwide socio-economic background pay gaps report which aims for 29% working class representation by 2030. The new data, published yesterday, measures pay gaps between colleagues from different socio-economic backgrounds by looking at their parental occupation. This method of measurement is recommended by social mobility experts, such as the Bridge Group, as the most robust and reliable indicator of socio-economic background.

The publication of the new socio-economic background data forms part of wider disclosures made by KPMG yesterday, as part of its Environmental, Social and Governance (ESG) plan: Our Impact. Our Impact brings KPMG and the UK’s ESG commitments together for the first time and measures the firm’s impact on the environment, how it drives prosperity for its people, communities and clients, and its focus on setting best-practice governance. Within the plan, KPMG in the UK has committed to voluntarily report against the World Economic Forum International Business Council Stakeholder Capitalism Metrics. This will give stakeholders a common way of measuring and understanding the impact of the ESG plan and the progress the firm is making. By using the common metrics, the firm can also be benchmarked against its peers, who are expected to follow suit.

Bina Mehta, Chair of KPMG in the UK, said: “The publication of this data builds on our concerted efforts over a number of years to track and measure the socio-economic make-up of our workforce. It’s only through this focus and level of transparency that we’re able to hold ourselves to account to take targeted action that will help create a fairer and more equitable society. I’m a passionate believer that greater diversity in all its aspects improves business performance. Diversity brings fresh thinking and different perspectives to decision making, which in turn delivers better outcomes for our clients. Reporting against a common ESG framework drives greater transparency and accountability. Most importantly, businesses can demonstrate their broader impact and crucial role in driving change on some of society’s most important issues.”

Jon Holt, Chief Executive of KPMG in the UK, said: “We know that investors, clients, employees and communities want greater transparency from business, and our Impact Plan is just the start. But by taking this important step in reporting and giving more details about the way we run our business, we’re measuring our progress and holding ourselves to account to ensure that opportunities are open to all.”

Nik Miller, Chief Executive, the Bridge Group said: “Progress in diversity and inclusion requires robust evidence and practical action. In publishing pay gaps by socio-economic background for the first time, and using this to inform a strategy for change, KPMG is leading the way. We hope that this will inspire others to follow suit and will strengthen our wider understanding about how background impacts on opportunity, and the ways in which society and business can benefit from greater equality."

The KPMG report is available here.