CEOs prioritize sustainability even if short-term profits decrease: PwC report
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CEOs are ready to make expenditures that address environmental, social and governance (ESG) issues even if doing so reduces short-term profitability, according to the PwC’s 27th Annual Global CEO Survey.
It noted that CEOs are reevaluating their priorities, focusing on climate change. Around one-third of CEOs anticipate changes in how their companies create, deliver, and capture value due to climate change, indicating a shift in perspective compared to previous years.
“Financial services faces possibly one of its most significant challenges: how to align portfolios with the net zero transition and create a positive effect in global markets without jeopardizing returns, and many of the world’s biggest firms are still unsure how to navigate this shift. However, our research shows that firms are seeking a smooth transition to decarbonization and using their portfolios to balance climate-related goals with their duty to meet performance targets.” Isabelle Jenkins, leader of financial services at PwC UK, said in a release.
“The willingness to accept lower returns for climate-friendly investments is a testament to the sector’s commitment to making a positive impact on the planet, and continued consistency and clarity from policymakers are vital if firms’ decarbonization efforts are to make effective change.”
Also read: Blended finance is the viable path to a low-carbon economy: Report
The survey recommends leveraging their focus on long-term value and performance and using forecasting, budgeting, and risk management tools to integrate sustainability into business strategy, particularly in areas such as decarbonization, social sustainability, and nature preservation.
Key findings:
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