PwC Global CEO Survey
PricewaterhouseCoopers (PwC) releases the 27th edition of the Global CEO Survey, which aims to analyze CEO groups’ views on global development trends and their views on how companies can maintain growth.
Climate change has once again become a key topic that CEOs pay attention to. Whether it is understanding climate change trends or solving climate change problems, it has become a factor that senior management cannot ignore.
Related Post: World Economic Forum Puts Climate Risks at the Top of Global Risk List
What the CEO Thinks about Climate Change
Most CEOs say they have made progress in addressing climate change, with two-thirds of respondents improving energy efficiency and more than half developing climate-friendly products and services. However, some CEOs still need to pay more attention to climate change. One-third of the respondents have not yet integrated climate change into financial planning, and some groups have not considered climate risks in the supply chain.
PwC estimates that 55% of the world’s GDP relies on natural capital, and investing in climate change is an important measure to protect it. Both climate and nature priorities require significant investment, and CEOs should look for business models that are good for nature to reduce operational risks and increase financial returns.
What the CEO Thinks about Climate Solutions
PwC found in an investor survey that two-thirds of investors believe companies should spend on environmental, social and governance issues, even though such spending is likely to reduce short-term profitability. 41% of CEOs said they have set lower return levels for climate-friendly investments to increase their investment in climate solutions.
29% of respondents believe that the return on climate-friendly investments should be between 2% and 4%, and 40% believe that the return on climate-friendly investments should be higher than 4%. Although the CEO community focuses on the long-term growth of the company, a sustainable business model should be considered in decision-making. CEOs and senior management should incorporate sustainable development into resource allocation and risk management.
Reference:
PwC 27th Global CEO Survey
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