Over half (54%) of chief executives around the world rank sustainability as a ‘higher priority’ than they did a year ago, according to a new report from EY.
The EY CEO survey, which featured feedback from some 1,200 executives around the world, found that in the short-term, a focus on technology, particularly AI, is at the top of the CEO agenda, but in the medium-to-long term, sustainability considerations come to the fore.
Sustainability ambitions
The fact that just 28% of institutional investors see sustainability as a ‘higher priority’ than a year ago indicates a misalignment between chief executives’ sustainability ambitions and the need to drive short-term financial returns, EY said.
As it noted, there is now a ‘clear sense that global CEOs in 2024 are more confident about controlling what they can and managing what they can’t’, adding that resilience has enabled them to navigate external challenges more effectively, and remain focused on larger goals.
‘Cost-focused market’
‘Achieving sustainability targets can be challenging – particularly in a difficult, cost-focused market,’ EY said.
‘Our report shows that greater collaboration between corporates, investors and policymakers could unleash a new wave of bottom-up initiatives that could help accelerate the road to net zero and unlock a more sustainable future.’
Elsewhere, both CEOs and institutional investors believe that 2024 will be a ‘positive’ year for mergers and acquisitions, compared to a more ‘subdued’ 2023.
Increasing numbers of CEOs are looking to make acquisitions and/or divest business assets, with 61% of institutional investors anticipating a ‘stable’ deal environment, with a third (34%) expecting the number of deals to increase.
Along with a survey of CEOs, EY’s report also draws on the views of some 300 institutional investors. You can read it here.
Read more: Corporate boards need to ‘challenge’ management into incorporating sustainability: EY
In this new era of sustainability, businesses need to adapt. Keep up to date with the latest developments at www.sustainabilityonline.net.
