Charting a course
In businesses navigating challenges and opportunities, the winds of change are blowing towards sustainability. According to a recent survey by EY, over half of CEOs globally are steering their organisations towards greener pastures, with sustainability taking centre stage like never before.
EY’s CEO Outlook Pulse Survey, conducted across 21 countries and five industries, unveils a significant shift in CEO priorities. A staggering 54% of CEOs now prioritise sustainability more than they did a year ago. However, it’s not all smooth sailing, with 23% citing economic or financial hurdles for deprioritising sustainability initiatives.
Across regions, the Americas lead the charge with 62% of CEOs boosting sustainability on their agenda, while Europe and Asia-Pacific follow suit at 51% and 49%, respectively. This regional contrast mirrors varying degrees of commitment and challenges faced by businesses worldwide.
Looking beyond immediate horizons, CEOs are increasingly setting their sights on sustainability as a strategic imperative. Decarbonisation emerges as the crown jewel, with 43% of CEOs pinpointing it as a top priority over the next three years. This underscores a fundamental shift towards environmentally conscious business models.
Despite economic uncertainties, CEOs exude confidence in their business prospects. 60% express optimism about revenue growth, while 65% foresee improved profitability. This resilience amidst adversity showcases a steadfast commitment to sustainability goals.
Interestingly, the investor landscape presents a nuanced picture. While 28% report heightened priority towards sustainability, 35% signal a decline. This disparity underscores the complex interplay between investor expectations and corporate sustainability initiatives.
Despite divergent views, CEOs and investors converge on critical sustainability issues. Both acknowledge the menace of “greenwashing” and the risks posed by stranded assets due to ESG factors. Moreover, there’s consensus on the pivotal role of technology and AI in addressing sustainability challenges.
Closing summary
In a world grappling with environmental concerns and economic realities, the path to sustainability is fraught with challenges and opportunities. As businesses navigate these uncharted waters, a collective commitment to sustainability emerges as the guiding star. It’s not merely a corporate prerogative but a shared journey towards a greener, more resilient future.
