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For LiFeA periodical for KPMG Alumni
issue 2 Winter 2011
kpmg.co.za
Africa A continent
whose time has come
Africa is complex. It is multi-cultural, multi-lingual and geographically vast.
KPMG provides consistent, high quality and integrated services to multi-national, regional and local
clients across Africa.
We are globally connected while locally relevant.
kpmg.co.za
issue 2 | Page 1
ContentS
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Delivering the KPMG Difference 3 A word from Moses Kgosana
the KPMG brand difference 4 Our journey to ‘cutting through complexityTM’
Alumni news 6 Mingling in the Mother City
Blast from the past
KPMG launches our Africa Conversation Series 8 Monitoring the continent’s business climate
KPMG takes a leap forward 10 KPMG acquires leading performance management and
business intelligence consultancy
P&t aims for the top 12 Ian Beaton returns to KPMG after spending time with Oracle and Accenture
A distinguished career 14 News from former Director, Roland Hudson-Bennett
on the fast track 15 Brendon Wood, Executive Director of Dorbyl Limited
Breaking Barriers 16 James Hourigan’s life-changing experience benefits other amputees
At the forefront 18 KPMG is working with clients to make the most of COP17
Coming up 20 Don’t miss these exciting events!
Page 2 | For Life
“Our global research has told us that clients value our ability to cut through the complexity of an ever-changing world more than anything else.”
issue 2 | Page 3
Since the launch of For Life in Spring last year, we’ve had some exciting and challenging experiences at KPMG. Over the past several months, we’ve put considerable effort into refreshing the KPMG brand globally and locally – with specific emphasis on actually delivering on our brand promise. Our extensive research has told us that clients value our ability to cut through the complexity of an ever-changing world more than anything else, and we’ve responded. We’ve positioned ourselves to say that our ability to cut through complexity in a way that works for our clients and us is what sets us apart from everybody
else. Indeed, it defines the KPMG Difference. The KPMG brand has always been powerful, and this next step in our brand journey is vital to ensuring it grows from strength to strength.
Other exciting developments for KPMG in Africa include the establishment of our Africa Telecoms Group (in collaboration with KPMG in India and Portugal), the launch of our Africa Conversation Series, and the acquisition by KPMG in South Africa of FIOS that brought cutting-edge skills into Performance & Technology complementing and enhancing our existing service offerings.
These are just some of the ways we are working to keep delivering on our refreshed brand promise – by making information and expertise in notoriously complex business arenas easily and readily accessible to our clients.
While we have many challenges ahead, we find that we are getting more and more support and encouragement for what we are committed to achieving – either directly or indirectly. Tim Flynn, our International Chairman, was one of the Co-Chairs at the World Economic Forum on Africa in Cape Town in early May, raising the profile of KPMG at this milestone regional event to an unprecedented level.
We believe it is important for KPMG to support our Alumni, too. We’ve caught up with a few of our old friends in this issue, whether through interviews or events across the country.
We hope to keep building our relationships with all of you through these kinds of initiatives.
We invite you to stay close to the firm, and engage with us in whatever ways work for you. We have some exciting plans in the pipeline that will make it a little easier for you to do this, and to keep in touch with each other.
This includes exciting new website functionality (currently under development) and networking opportunities. This issue of For Life is only the beginning. We hope you enjoy it!
Delivering the KPMG Difference
Page 4 | For Life
the KPMG brand differenceOur journey to ‘cutting through complexityTM’
In South Africa, KPMG’s origins date back to 1895, when Scotsman Alexander Aiken set up an accounting practice in Johannesburg. Back then, the concept of ‘branding’ didn’t extend much further than consistently offering an excellent service. It was a good strategy. Word-of-mouth is the most effective form of marketing to this day.
A strong brand is the face of any company. It is not a static entity, but must be managed proactively and positively to keep its value intact. KPMG’s brand has travelled a long and eventful road since 1895.
Through organic growth and strategic mergers, several powerful brands rose to represent what became KPMG.
In the early days, advertising was frowned upon for professional accounting firms. The American Institute of Certified Public Accountants (AICPA) went so far as to ban advertising in the accounting profession between 1922 and 1978. Though legal, it was almost universally regarded as unprofessional.
into the fray
Once the ban was lifted, accounting firms did not hurry to embrace the supposedly crass world of advertising. Even the 1987 merger between KMG (Aiken & Carter in South Africa) and Peat, Marwick, Mitchell & Co didn’t lead to much advertising. Only a name change, to KPMG Peat Marwick internationally and KPMG Aiken & Peat in South
Africa, indicated that this important event had taken place.
KPMG Peat Marwick first embraced advertising as a differentiator in 1993. The campaign, ‘KPMG Peat Marwick: The Global Leader’, focused on the firm’s global stature, urging companies to ‘Go global – but not without a map.’ It ran internationally and portrayed the firm as a polished global performer.
This first expression of a global brand identity was hugely successful, and the firm enjoyed large increases in revenues.
In 1995, Peat Marwick and Aiken & Peat were dropped from the firm’s name, allowing the name ‘KPMG’ to stand alone. The following years saw the formation and growth of a number of specialist departments and industry groups.
issue 2 | Page 5
The firm continued from strength to strength. Well thought out marketing efforts had become a necessity.
In 2003, KPMG launched ‘The KPMG Way’, a unified global identity enhancing the KPMG experience, aligning the firm’s global community around a common set of services and cementing the firm’s distinct visual identity. This identity has served the firm well, ensuring that the KPMG brand became instantly recognisable the world over.
A bold new face
Now, in an era when the world is changing faster than ever before, KPMG has refreshed its brand to respond to this challenge. It has become important to remind the world why KPMG is the professional services firm to work with.
The Firm conducted international research to align our brand with our strategy going forward. Clients and our own people told us what they believe sets KPMG apart
from its competitors. Their responses led to a bold, fresh brand to take the firm forward.
Complexity is a major cause for concern among our clients. New legislation, regulatory challenges, new market opportunities and new technologies are only some of the challenges they face. Our refreshed brand makes it clear that we can help them overcome complexity.
Our new tagline – cutting through complexity™ – captures our refreshed brand’s essence perfectly. This business philosophy is what drives us in everything we plan, say and do.
We are moving into the future with a brand that clearly differentiates us in the market and we look forward to living up to our brand promise going forward.
In 1998, KPMG created another brand campaign intended to differentiate the firm in an industry where people viewed competing firms as interchangeable. At the time, the business world found itself in the ‘information age’, and understandable business advice and practical solutions were a priority for most potential clients. Using the tag line ‘It’s time for clarity’, KPMG asserted its ability to meet this need.
The campaign played an important role in solidifying the KPMG brand. It included print, broadcast and billboard advertising, and was the initial phase of a worldwide branding drive for KPMG. Tim Pearson, then Chief Marketing Officer for KPMG international, said at the time, ‘’This is advertising that helps articulate KPMG’s strategy and captures who we are.’’
Fresh brand, fresh look!
We’ve redesigned For Life to bring you a bold
publication that shows off all the best elements of
our refreshed brand. We’d love to know what you
think of our new look.
Send your comments to
FL
Page 6 | For Life
Mingling in the
Mother CityKPMG in Cape town hosted an alumni function at the end of 2010 at our offices.
KPMG alumnus Kevin Gleeson, now Deputy Financial Director of Group Finance at Old Mutual, gave a presentation. A cocktail party and a lot of networking followed.
David Friedland, John Snalam and Anton le SueurRob Murphy and Kevin MorrisMike Blomkamp, Mark Hodgson, Peter Crawford and Neil Hodgson Kevin Gleeson and Rory Williams
Derek Wright, Bill McKenzie and Tony TurnerOlga Constantos and Robert DukGavin Tipper, Pierre Conradie and Bill McKenzieGary Pickering and Michelle Berry
KPMG in Cape town hosted a lunch for former Partners at the Quay Four restaurant, V&A Waterfront
From left to right: Barrie Jack, Gary Pickering, Roland Hudson-Bennett, Edward Belstead, Vincent Fitzmaurice, Gavin Tipper, Bill McKenzie, Kevin Gleeson, Patrick McGurk, Craig Steven-Jennings, Kari Lagler, Franco Vignazia, Di Hurworth, Rod Fraser, Tony Wright, Mike Blomkamp, Pierre Conradie, Bronvin Heuvel
issue 2 | Page 7
Blast from the past
Page 8 | For Life
individual economies, such as Nigeria and Angola, projected to grow at over 7%. Clearly, there is increasing confidence in Africa’s economic potential as a collection of diverse emerging markets with much to offer the global economy.”
Clearly, there is increasing confidence in Africa’s economic potential
The KPMG Conversation series, launched in 2009, facilitates interaction and knowledge-sharing between KPMG experts, clients and other stakeholders operating in various economic sectors.
In February 2011, we extended this to host the first of our Africa Conversations, a new series dedicated to the latest developments in Africa and the implications for the continent’s economy.
The inaugural event saw panellists from across Africa look at the ways in which doing business in Africa is becoming easier.
The event took place at the firm’s Wanooka office in Johannesburg and CNBC Africa broadcast the session live across the continent.
These panellists noted that Africa offers many opportunities for investors. While some still see Africa as a risky investment, others expect great rewards from their involvement. Reasons for
this increased optimism include simpler rules and infrastructure upgrades.
Superior growth
Moses Kgosana, Chairman and Senior Partner for KPMG Africa and Chief Executive of KPMG in South Africa, spoke of superior growth forecasts for Africa. “It is estimated that the sub-Saharan African economy will grow by 5.3% in 2011, with
issue 2 | Page 9
‘Infrastructure challenges in Africa’ was the theme of the second Africa Conversation, also held at Wanooka, in May. Panellists at this event upheld Public-Private Partnerships (PPPs) as the alternative to traditional forms of investing, and pointed to the need for more localisation and incentives. Piet Sebola, Project Manager at the
Passenger Rail Agency of South Africa, said governments could not be the only source of funds for public sector infrastructure projects. Commercial banks, export credit agencies and governments need to combine their efforts for project funding.
DeBuys Scott, KPMG’s Global Infrastructure Projects Group head for Africa, said significant
improvement was needed on the regulatory and legal front if infrastructure projects were to be bankable.
“There is progress,” according to Kenya-based Drummond Investment Bank Executive Director King’ori Gathinji, “and we expect to see investment open up in the manufacturing and services sectors.”
KPMG’s Global Infrastructure Projects Group head for East Africa, John Kiruthu, said that governments in the region recognised the role of Information and Communication Technology (ICT). Kenya’s ICT sector is already paying dividends, in a country boasting some of the lowest mobile tariffs in the world.
Great things to come
The Africa Conversation discussions have been extremely well received, not only by those attending in person but also by those watching the broadcasts from countries all over Africa. KPMG alumni with an interest in Africa are welcome to attend our next Africa Conversation. Please visit
kpmg.co.za
to find out more
FL
Page 10 | For Life
Directly in line with our growth strategy, specifically on the acquisition trail in the Performance & Technology (P&T) environment, the acquisition by KPMG of FIOS in March 2011 complements the range of services already offered by KPMG. This organisation is an established leader in Performance Management solutions.
“KPMG’s extensive advisory services further complemented by the specialist technical capability of the FIOS team, underpinned by the strength of the KPMG brand, brings a unique offering to the market,” said Tony Vicente, Head of Performance & Technology at KPMG.
“The acquisition represents a significant step forward by KPMG in building business skill sets that are appropriate to market needs. When we ask our clients to rank improvement opportunities that will contribute to financial performance in future, they strongly indicate the need for real business intelligence, rigorous budgeting and forecasting, and sound interpretation and advice from finance. It now means that we can better jointly develop sophisticated solutions to address their needs, combining financial management and reporting, business intelligence and IT-enabled business solutions.”
KPMG takes a leap forward
Tony Vicente, Head of Performance & Technology , KPMG in South Africa
issue 2 | Page 11
The FIOS team integrated with KPMG’s existing P&T team in April 2011, enabling us to offer comprehensive, multi-disciplinary management consulting services to clients across Africa. This is a natural extension to our Advisory practice.
new services are complementary
The new services we’re offering complement our skills in IFRS, financial management, managed services, integrated reporting and process re-engineering. This additional expertise cements KPMG’s position as a market leader, allowing us to offer our clients comprehensive end-to-end solutions. It presents lucrative new opportunities with existing clients as well as opening doors to new prospects.
Founded in 2003, FIOS brings a combination of financial and technical expertise and solutions to KPMG. The organisation has a strong record of accomplishment with an extensive client base covering a wide range of industries, including financial services, insurance, retail, mining, manufacturing and pharmaceuticals.
Predominantly responsible for implementing Performance Management technology platforms including IBM-Cognos, Informatica and Oracle-Hyperion, FIOS expertise is directed at developing solutions in budgeting and forecasting, financial consolidations, business intelligence gathering and data integration.
new opportunities abound
The integration of this successful business into KPMG is creating new opportunities, including in previously unchartered territories.
The KPMG footprint allows skills exchange and business opportunities to be realised in the broader African markets. Both FIOS and KPMG have an African presence, with KPMG having identified Performance and Technology as a strategic business growth pillar across the world.
For more information, visit kpmg.co.za
The acquisition represents a
significant step forward by KPMG
in building our business skill sets
that are appropriate to market needs.
FL
Page 12 | For Life
Ian Beaton returns to KPMG after spending time with Oracle and Accenture
P&T aims for thetop
issue 2 | Page 13
Ian Beaton returns to KPMG after spending time with Oracle and Accenture
We caught up with Ian to find out what it’s like to be backHow did you come to join KPMG originally?I finished my National Service and then joined KPMG in 1981 as a trainee accountant.
tell us a little about your time at KPMG, and your fondest memories of the firm.I started in audit, but halfway through that I found IT and moved into IT consulting. From there I was involved in Capital Projects, now Major Projects, with Errol Macaulay. I spent five years on Mossgas and then got involved with setting up our SAP capability. I led all the
financial and technical resources for that. In 1997, we started the Oracle business, which I lead.
What was your proudest achievement during your time with KPMG?The team that we built in the Oracle days, and the successes we enjoyed there. We built a very strong capability and did very well.
Why did you decide to leave the firm and join oracle?KPMG was selling the consulting business at the time and Oracle was looking for a Consulting Director. It was an opportunity to work in a truly global company and it played to my strengths.
What were your most profound learnings with oracle?Oracle is a sales organisation. Seeing how that operates and what a sales culture looks like was different. I hope that I can bring some of that experience here.
KPMG has refreshed its brand proposition to explicitly include refernce to ‘high-performing people.’ What do you think this concept ‘high performing culture‘ means for KPMG?
It’s about discipline, passion, excitement and doing what you say you’re going to do. The other thing is process – it has to work.
tell us a little about your journey back to KPMG and how it feels to be back with the firm.I’ve kept in touch with a lot of the guys here at KPMG. I bumped into Carel Smit down in Cape Town and he told me that P&T was getting going and starting a technology business.
Later, John McIntosh told me the same thing and it grew from there. I have 15 years in the Oracle world – might as well leverage it...
Everyone’s saying ‘Oh, great to have you back...’
What do you think of our new tagline – ‘cutting through complexity™’?In the world I live in, that’s what we do – put in systems to automate processes, remove non-value-adding activities and reduce the complexity.
What would you like to achieve at KPMG in the next three years?We want a strong technology business. In the Oracle space there isn’t a large, well-represented global player. When I left in 2004, KPMG had been number one, recognised by Oracle, for five years in a row. I’d like to get us back to that level. There is huge potential. FL
Page 14 | For Life
Roland Hudson-Bennett, former Managing Director of KPMG in Cape Town, was with KPMG for 34 years before retiring in 2004.
How did you come to join KPMG?
Living in Durban at the time, I wanted to become a Partner in a reputable firm with an international connection. I approached Hemphill, Lucas & Purnell who were affiliated to Peat Marwick Mitchell & Co, and I was accepted!
tell us a little about your time at KPMG, and your fondest memories of the firm.
Although 34 years with one firm is a long time, I really have no regrets. I was able to work in the Durban, Port Elizabeth and Cape Town offices, the last two as Managing Director. Through the Inter-Office Review Programme, I visited most of the offices in South Africa and some abroad, which was very interesting. The most stimulating feature of my time with KPMG was the wonderful people I worked with, from filing clerk to Director level.
What was your proudest achievement during your time with KPMG?
Accepting the appointment as President of the Cape Town Chamber of commerce in 1993, where I met leaders from across the political spectrum including Nelson Mandela, FW de Klerk, Tony Blair and Gatsha Buthelezi.
tell us a little about your involvement with Ons Plek.
I am on the Committee of Ons Plek Projects. Our vision is to make a substantive improvement in the lives of female street children and children at risk of becoming street children. We operate two shelters and two Homework Support programmes.
What drew you to the Board for the Castle of Good Hope?
I have always had a keen interest in our history. What better example is there than the Castle of Good Hope? It is the oldest building in South Africa, built in 1666. I am the longest-serving Board member, appointed in 1994.
one of KPMG’s values is a commitment to our communities. What do you believe this means?
Commitment to our communities involves personal commitment and time, not just handouts.
With KPMG’s global brand refresh, this value now explicitly includes our environment. What are your thoughts on this?
With the large and prestigious client base that KPMG has, it is vital that KPMG visibly sets an example through positive commitment towards global issues such as the protection of our environment.
What is particularly important to you personally in 2011?
A healthy year and the opportunity to see a great deal of my four grandchildren, watching them grow to take their place in this fast-changing world.
What advice would you offer people trying to make their mark at KPMG?
I would like to quote from Shakespeare’s Hamlet the advice given by Polonius to his son Laertes: “To thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man”.
A DISTINGUISHED CAreer
FL
Commitment to our communities involves personal commitment and time, not just handouts
issue 2 | Page 15
Brendon Wood joined KPMG in Johannesburg as an accounting clerk.
Now Executive Director of Dorbyl Limited, he spoke to For Life on his return from a business trip to Paris and Brussels.
How did you feel when you first joined KPMG? Honestly, the first feeling was “Is that really a first-year clerk’s salary? Really?”
How has your KPMG experience been beneficial in your current role? The audit approach rolled out by KPMG really helped me to understand various business models from the strategic, operational and financial viewpoints. This provided the valuable insights needed as an Executive Director of a listed company.
How do you maintain a work-life balance? I am still trying to figure this one out. I guess the occasional lunchtime surf and having the audit dinner at the Spur, with the wives and kids, are some ways of trying to find some balance.
How important is it for leadership to come from different generations? Diversity is important. I have met some young 60-year-olds and some old 20-year-olds. However, a company in the 21st century does need continuous new ideas and energy. For this reason, the company’s top leadership should be overhauled every seven to 12 years.
Which skills are crucial to your industry? The strategic skills needed come down to how to really understand the customer’s perception of value, knowing when to say no and making sure that your business is the best at something.
What do you think the top three trends in your industry will be in 2011? Supply disruptions, volatile demand and inflation. Fun, if you enjoy a daily adrenaline rush.
KPMG has a new tagline – cutting through complexity™. What do you think the firm should do to live up to this promise? One-page reports and more pictures!
What is your favourite buzzword right now and why? Buzzwords should be banned! Buzzwords lead to ‘herd-mentality’ and they kill ‘independent thought’. Oops, I think I used a buzzword in that last sentence.
What are you reading now? Why? Das Kapital by Karl Marx. It assists me to understand the Cosatu language, which is important when negotiating with the trade unions. I can recommend it to all Chartered Accountants who were fed the ‘free market’ theories only at university. Unfortunately, since the beginning, some of the Marxist theories were abused by organisations from the socialist side of the political spectrum. This even resulted in Karl Marx denying that he was a Marxist. Capitalism is great, but needs to be more creative if we are to solve the global pandemic of income inequality and poverty.
Please complete the following: Five years from now, i will be... ... in South Africa. I believe in this country’s potential and I will be here creating jobs and finding solutions to our challenges. Whenever I answer this kind of question, my wife says that I sound like a contestant from a beauty pageant. She is probably right, but as John Stuart once said, “One person with a belief is equal to a force of 99 who have only interests”.
On the fast track
FL
Page 16 | For Life
Breaking barriersno man is an island. James Hourigan
(Director, tax) is taking this mantra to other amputees through the Breaking Barriers Charitable trust.
A horrific car accident in October 2009 cost James Hourigan both his legs from the knees down. 18 months later, he is walking, playing golf and working out in the gym again. He credits his amazing recovery to the support of family, friends and KPMG, the will of God and private healthcare.
“One of the reasons I managed to get back to doing everything I used to do effectively before the accident so quickly was private healthcare,” says James. “Not everyone has that luxury. During my stay at the Netcare Rehabilitation Centre in Auckland Park, I was an in-patient and I had my own room. It reminded me how lucky I was and, in some respects, I had a relatively easy journey. Others could only stay in
the rehabilitation centre for a short
period and not necessarily the
time they really needed to achieve a
speedy recovery.”
Touched by the challenges faced by
amputees without extensive financial
support, James started the Breaking Barriers Charitable
Trust. “Breaking Barriers is a concept I thought about
once I had reintegrated myself into the workplace,” he says. “I
guess it was something that was meant to happen. God told me:
‘This is what you’re going to do’. And I did it.”
The Trust aims to raise funds exclusively for amputees that cannot afford private healthcare. James hopes it will support up to two amputees in its early stages, with either extended rehabilitation time or better quality prosthetics. “What I’m wearing today is the Rolls Royce version of prosthetics,” he jokes. “If you can’t walk with what I’ve got there’s no point in standing up. So it’s about giving other people that opportunity.”
James discussed his idea with Danie van Heerden, Executive Director, Africa Risk Management at KPMG and got the green light to proceed. Soon people from across the firm were offering to help. KPMG Tax & Legal drafted all the trust documents and Marketing, Communications &
Corporate Citizenship has assisted in creating awareness.
The Trust’s most important task is fundraising. Early in September 2011, Breaking Barriers will host its first golf day.
“We’re going to use a course at the Johannesburg Country Club and that’s going to be followed by a dinner and auction,” James explains. “We’ve asked the South African Disabled Golf Association to get involved, and have invited some of the country’s top disabled golfers to play. Able-bodied golfers will be able to challenge these players to see who can hit the longest drive.”
Fun elements like this one will make the Breaking Barriers Charitable Trust Golf Day an event not to be missed.
James is working hard to secure sponsorship attendance. “The bottom line is all the funds we raise will go toward the trust,” he smiles.
KPMG Alumni will receive invitations to play in the golf day later in the year, and sponsorship opportunities are still available.
For more information, please contact James Hourigan on 011 647 7422 or e-mail [email protected]
issue 2 | Page 17
“It’s about giving other people that opportunity”
Page 18 | For Life
COP16 has paved the way for fruitful deliberations in Durban in December this year. KPMG has a robust international foundation on climate change and sustainability.
Our success with our own Global Green Initiative and interactions with various stakeholders at COP16 puts KPMG in an ideal position to engage with business, now more than ever, to find the opportunities in the challenges that surround sustainability.
Neil Morris, Director, Climate Change & Sustainability at KPMG in South Africa, attended COP16. Asked what he felt the most important outcomes were, Neil said, “COP16 did well to keep the expectations low but still formalise many of the informal agreements reached in Copenhagen.
For example, the documents that came out of Cancun now formalise the pledges made by all industrialised nations to reduce their emissions by 2020 and by 40 developing nations to reduce the growth in their emissions by 2020.
“Cancun formalised the fact that international finance will become available to developing countries, beginning with fast-start finance of $30 billion over the next three years, growing to $100 billion from 2020. The funds will be available for both adaptation and mitigation action.”
Significant new obligations in terms of strategy, and plans to integrate climate change and sustainable development into the national economic growth goals, were also agreed to.
At the
forefrontKPMG is working with clients to make the most of COP17
issue 2 | Page 19
The option to develop Nationally Appropriate Mitigation Actions (NAMAs) can now go into an international registry and would be eligible for international funding. Another important outcome was the agreement to intensify monitoring, reporting and integration of climate change into national planning.
Still to be decided
There was no agreement on the legal form of the two-track process, intended to achieve the simultaneous continuation of the Kyoto Protocol and the development of an agreement for the US and the developing world.
Global reduction of emissions by 2030 and a year in which emissions will be allowed to peak globally weren’t confirmed, nor were common carbon accounting rules, carbon offsets for the developed world or sources of funding.
Morris feels that South Africa’s biggest challenge in hosting a successful COP17 will be demonstrating how we are delivering on our pledge to reduce greenhouse gases. Our targets are 34% by 2020 and 42% by 2025 below business as usual, on condition that we receive the necessary finance, technology and support from the international community.
Answering critical questions
He points out that Cancun has left critical questions for Durban. “What is to be the future of market-based mechanisms?” he asks. “Currently there is the ‘Clean Development Mechanism’ from which many developing countries have managed to benefit but how can we really take market mechanism to scale? How can we build on the experience of the ‘Clean Development Mechanisms’? How can we find ways of financially supporting more innovative approaches to draw green growth into national planning and national strategies?”
A key challenge facing business leading up to COP17 is the fact that business does not have
a recognised voice in United Nations events. This necessitates convening workshops and discussions between government and business on technology, financing and market mechanisms that government can take to the deliberations.
KPMG urges South African business not to wait for December to start engaging with government. We believe success in a green economy will be driven by business through government, not government through business. There are three critical areas for business to engage in, namely to design the carbon tax system, to interrogate the green paper on climate change and to share knowledge.
Neil says that “short of a legally binding international treaty and domestic legislation in some key countries, uncertainty for post-2012 remains. However, the fundamental features have been determined. The world is moving towards a low-carbon development path and a fundamental transformation of energy systems and energy use will be needed.”
Businesses operating in developed as well as in developing countries can’t ignore these trends and need to prepare. New opportunities are emerging for low-carbon investment in developing countries like South Africa, and there are signs of renewed confidence among investors in carbon markets, but uncertainty
remains on the shape of new market mechanisms.
“Climate changes pose hugely divergent issues for our clients, from overwhelming risk to blue-sky opportunities,” Neil summarises. “We aim to work with our clients to understand and manage their risks and position them to take advantage of the opportunities.”
KPMG will most certainly play a role in COP17 in Durban. “However,” Neil says, “we believe that we can play a more important role engaging with our clients, government and our alumni throughout the year leading up to the event.”
For more information, visit kpmg.co.za
FL
Page 20 | For Life
issue 2 | Page 21
Stay in touchFor Life is a publication for KPMG Alumni, designed to keep you up to date on developments at the firm, and connected to the people you worked with.
If you want more information on any of the topics covered in this issue, would like to attend one of our events or simply need to update your details, please get in touch.
Lulama MaswanganyiMarketing coordinator Marketing, Communications & Corporate Citizenship Johannesburg t: 011 647 5904 e: [email protected]
We welcome your comments and suggestions.
Editorial Carl Ballot t: 011 647 7385 e: [email protected]
Elaine Porter t: 011 647 7145 e: [email protected]
Design and production Joanne McIntrye t: 011 647 6240 e: [email protected]
Your opinion counts!For Life is your publication. it’s about making sure our Alumni get all the information they need about each other and KPMG. We’d like to know what kind of content and information would make For Life even better.
Please e-mail your comments or suggestions to [email protected]
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 opinions of the authors are not necessarily the opinions of KPMG.
© 2011 KPMG Services (Proprietary) Limited, a South African 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. Printed in South Africa.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
