Shifting the mindset, reaping the benefits We have a unique opportunity to improve our defense capabilities and become a more efficient force, while securing a better future. I challenge our Army to examine climate threats, prioritize resources, and take swift action. Christine E. Wormuth Secretary of the Army Department of the Army, Office of the Assistant Secretary of the Army for Installations, Energy and Environment. February 2022. United States Army Climate Strategy. Washington, DC Governments need to begin looking at their mission, • Economic and cost efficiency opportunities strategy, and operations through an ESG lens to better through sustainable sourcing, process efficiencies, understand their relevant risks, vulnerabilities, and energy efficiency and renewable energy sourcing, opportunities. In our work, we see governments doing talent attraction and retention, and other financial arrangements related to ESG. ESG also can just that to achieve greater organizational stability, contribute to creating jobs and attracting businesses, better risk management, and increased resiliency— driving economic and regional development particularly in infrastructure-intensive and defense agencies. • Increased strategic alignment by integrating ESG goals with the agency‘s mission, including ongoing In shifting its mindset to leading by example on ESG in A mindset shift in government—one in which review of requirements, metrics, and targets all its roles, government can harness the power of ESG to move toward a Modern Government, one that governments realize and embrace their leadership in ESG • Improved public trust and confidence by taking is connected, powered, and trusted. ESG agendas can disciplined action around issues critical to the public‘s help attract the next-generation workforce connected across their many roles—can serve as a catalyst for the well-being and from the ability to withstand increased to purpose and mission, accelerate governments' scrutiny from major stakeholders and outside groups efforts to modernize across stakeholder groups, drive success of the overall ESG movement and governments’ innovation, and improve public trust in governments. • Stronger organizational resilience from improved own modernization and transformation efforts. skills and alignment central to ESG that help agencies In particular, these five benefits stand out among adapt to an increasingly uncertain future. others when governments embed ESG in their Governments must lead by example and take advantage missions and operations: of a burning platform to “do well by doing good.” • Enhanced operations by incorporating business transformation, redesigned business systems, improved data transparency, or new assets that can help mitigate ESG risks and support the agency’s mission 15 Environmental, Social, and Governance: Government leadership as a catalyst for success Environmental, Social, and Governance: Government leadership as a catalyst for success 16 © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent 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.