Measured Optimism for the New Year

As we approach the end of the calendar year with so many of our colleagues looking forward to a well-deserved break over their holiday seasons, I want to take a quick pause and reflect on the past twelve months. In all the years I have had the honor to serve our team around the world in this role, I can’t remember one that has had the degree of unrest and accelerating uncertainty:?

• Humanity finds itself in a perilous position, as war and conflict have escalated in many parts of the world. We continue to see the unacceptable loss of innocent lives in increasing numbers.?
• Geopolitical tensions have increased, and navigating through the resulting maze these tensions create is more challenging than ever before. It is now seen as the number one risk by CEOs as identified in our CEO Outlook, an annual survey of business leaders.??
• The exponential rise and impact of advancing technologies and artificial intelligence is changing so much, so fast. Every one of us is looking at how we can maximize the clear benefits while creating the right legal, ethical and social guardrails.
• Action is being taken on climate change, but the pace and breadth of such change is slower than what’s needed to bend the curve. COP28 made it clear that we are well behind in our battle to address climate change but also identified clear priorities for a just energy transition and climate finance.

While this list is by no means exhaustive, it demonstrates the magnitude of the issues we all face. Each issue presents a new choice of direction almost daily – for people, for businesses, and for society as a whole – and the uncertainty of it all can be overwhelming.

But today I write this with a sense of measured optimism. As I engage with our firms around the world, I see our 273,000 people in over 143 countries working with businesses, the NGO community and with stakeholders to help scope, shape and implement the change necessary to face into much of this uncertainty.

I know we don’t have all the answers, and can’t address all these problems alone, but I feel inspired by the conversations I have with our clients, our people, and members of the communities and what they are doing during these uncertain times.?

People are taking action. Individually these actions can seem small in light of the magnitude of the challenge, but the aggregate of these efforts globally has a meaningful impact.?

People are engaging. I’ve seen courage in their willingness to tackle challenges and the often constructive debate that leads to finding a better outcome.

Our people are working together in unprecedented ways to bring all the voices into the room in an effort to find the best answer. They are bringing their personal integrity and their professional excellence to every conversation – which in turn builds trust and confidence in the solutions considered. And they do all of this with a sharp focus on achieving an outcome that is better for all.?

As our colleagues work together to build that more sustainable world we want for our children and grandchildren, all of us at KPMG are making the investments necessary to play our part. I’m proud that our network is?investing billions of dollars to ensure our people have the tools, the technologies, the training and the resources required to ensure the services our firms provide best support the solutions that come from these efforts.? We’re also keenly aware of our responsibility to uphold the public interest and the capital markets that are critical to find the path forward.

As we continue to work together, grow our business, and help our clients, we do so with a clear view of who we are, what we stand for, what our people and clients want, and what society expects.? Every one of our team members around the world takes that responsibility very seriously, and I am incredibly proud of their efforts.?

Few, if any, of these world problems will have gone away as we head into the holiday season. ‘Kitchen table’ conversations are likely to be mixed with emotions of gratitude, empathy and concern for others. But as an eternal optimist, while I spend time with my 90-year-old father and family, I will listen intently to his reflections and perspectives from almost a century of experience to find hope that humanity can, and will, forge a path through the uncertainty we face today.

I look forward to coming back in the new year and working with our incredible team, clients and all those that rely on us, to forge that path together. I wish all of my colleagues a restful holiday season, and my thoughts are with all of those who are facing difficult times.