The majority of U.S. CEOs expect to see significant returns from their companies’ sustainability investments within three to five years, even as they face inflation, supply chain challenges, and artificial intelligence. Across the board, corporate leaders continue to place ESG at the top of their business priorities. According to a new study released by professional services firm KPMG US.
In the 2024 KPMG US CEO Outlook Pulse Survey, KPMG surveyed 100 CEOs of large companies with annual revenues of more than $500 million, including one-third of companies with revenues of more than $10 billion. , investigated the key challenges and opportunities in driving business growth. Manage the combination of short-term risks and structural economic changes.
While examining factors ranging from generative AI to talent management, the survey found that implementing ESG initiatives remains a top business priority for CEOs, cited by 17% of respondents. , followed by capital and input costs to prevent inflation at 14%, followed by driving digitalization and connectivity, increasing supply chain agility and resilience, and improving customer experience at 11% each.
Rob Fisher, KPMG US ESG Leader, said:
“CEOs are going beyond the sustainability compliance checkbox. We have made it an essential part of our business.”
The survey showed that CEOs continue to focus on ESG as initiatives and investments are expected to deliver financial returns. The survey found that 55% of CEOs expect they will see a “big return” from their sustainability investments within 3-5 years, and 19% expect they will get a “big return” as early as 1-3 years. I expect to get it. Another 25% expect an even longer time horizon, predicting 5 to 7 years.
Mr Fisher added:
“Leaders expect their investments to deliver significant revenue growth within the next three to five years, as sustainability efforts are now seen as a path to profit rather than just a goal. From operations to products to governance, we are helping businesses move towards a more sustainable and profitable future.”
The survey also assessed key priority areas for CEOs’ sustainability efforts, with operations cited as the top focus area by 42% of respondents, followed by products at 24%, and governance models and Transparency protocols such as practice reports will follow. At 16%.
Other key findings from the survey include high levels of CEO confidence, with 87% confident in the growth prospects of the U.S. economy and 78% confident in their company’s growth prospects. , 72% say they expect their company to grow. We will increase the number of employees over the next year.
The survey also explored CEOs’ views on the opportunities and challenges of generative AI, with 41% planning to increase investment in GenAI over the next year and 38% citing it as the biggest challenge in its adoption. raises ethical issues. To address the responsible use of AI, CEOs plan to take a series of steps, including 81% 63% reported using disclosures such as “Created with the assistance of.” Implement privacy measures, including data anonymization techniques, and 49% plan to establish clear ethical guidelines for their GenAI.
Paul Knopp, Chairman and CEO of KPMG US, said:
“CEOs are thinking beyond compliance with climate disclosure rules and are focused on creating long-term value for their companies by ensuring sustainability is embedded into core business practices and operations. They believe effective data management and GenAI will enhance sustainability strategies and reporting, allowing organizations to make real-time adjustments based on data.”
Click here to access the survey.
