Generally, the public wants to see ESG imperatives in government governments take action around ESG The scope of ESG includes many issues essential to the mission of governments today—whether reducing wildfires in California, installing broadband in rural Texas, or deploying cyber-secure microgrids to help ensure of individuals believe that governments should play a energy resilience. 70% leading role in solving environmental and social issues While many ESG initiatives are intrinsic to the mission of government agencies, thinking about them as interrelated pieces under a common framework helps set goals, measure success, and ensure accountability. Of course, many Agree or strongly agree that governments are taking the ESG initiatives do not fall cleanly into either the E, the S, or the G category. Rather, they often begin with a focus in 35% appropriate amount of action to solve these issues one area and flow into adjacent areas, incorporating key elements of the other categories. Governments will each have their own mix of priority Federal and state governments are evaluated as ESG issues, but some prominent issues on primarily responsible for addressing ESG issues governments’ agendas today include: Federal government 54% 15% 10% 12% 8% State governments 48% 23% 17% 9% 4% Individuals 31% 8% 15% 16% 30% Environmental Local governments 29% 30% 18% 14% 8% • Environmental and climate risk • Water security • Waste management Corporations 23% 14% 22% 27% 14% • Greenhouse gas and carbon emissions • Energy management and resilience • Fleet electrification International 15% 10% 17% 22% 36% • Land use organizations • Air quality • Impact to ecosystems and biodiversity 1-2, Most responsible 3 4 5 6 Least responsible nance Governments' engagement with ESG issues impacts the Social Gover • Human rights • Transparency and disclosure public’s approval of governments and their representatives • DEI • Stakeholder engagement • Health equity • Systemic risk management • Working conditions • Cybersecurity say governments' engagement with ESG issues does not at • Privacy of constituent data • Ethics and integrity • Supplier diversity • Supply chain risk and governance 8% all affect their approval of governments and their representatives • Workforce experience • Military/veteran support • Quality service delivery Source: KPMG survey among U.S. residents , n=1,000 • Environmental justice Environmental, Social, and Governance: Government leadership as a catalyst for success 5 Environmental, Social, and Governance: Government leadership as a catalyst for success 6 © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.