PwC: climate change as the most important pressure in the reinvention of CEOs.

Today is Wednesday, March 27 2024.

45% of CEOs believe their company will not be viable in ten years if it stays on its current path.

This is the first highlight of PwC’s 27th Annual Global CEO Survey, summarizing the responses from over 4,700 CEOs.

The word "climate" appears close to 50 times in this 29 pages report, including in this phrase:

"Among the megatrends pressuring CEOs to reinvent themselves, none is more important than climate change".

PwC indicated to be "surprised to learn how few CEOs perceived some obstacles to have much of an impact. For example ... only 26% of CEOs described a lack of support from the board or the management team as a moderate or greater constraint on decarbonising the company’s business model".

Besides, like indicated in the report, “four in ten CEOs report that they have accepted lower hurdle rates for climate-friendly investments than for other investments—in the majority of cases between one and four percentage points lower. This is clear evidence that some CEOs are willing to make complex trade-offs as they strive to boost the sustainability of their businesses".

Among other key findings from the survey, we quote:

• The impetus to reinvent is intensifying, with growing pressure from technology, climate change and nearly every other megatrend affecting global business.

• Small company chief executives are more likely than their larger company counterparts to feel their company’s viability threatened.

• CEOs perceive enormous inefficiencies across a range of their companies’ routine activities—everything from decision-making meetings to emails—viewing roughly 40% of the time spent on these tasks as inefficient. Generative AI, which about 60% of CEOs expect to create efficiency benefits, could help relieve some routine burdens.

• The connections among reallocation, reinvention and financial performance suggest that more aggressive reallocation—up to a point—is required to succeed.

Click at the image below for the main edition of PwC’s 27th Annual Global CEO Survey: Thriving in an age of continuous reinvention.

As you will see, it includes a few bonus contents to listen, such as:

• Think beyond decarbonisation to uncover opportunities, by Emma Cox, and

• APAC’s local economies will continue to grow, by Bob Moritz and Raymund Chao

For the edition specifically analysing Brasil, click here.

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PwC’s 27th Annual Global CEO Survey, page 10. Llist on purpose of actions companies may undertake related to climate change.