A recent KPMG survey has found the majority of US corporate leaders hold an optimistic view regarding the financial returns on their sustainability investments within a timeframe of 3-5 years.
According to ESG Today, this confidence persists despite the hurdles posed by inflation and supply chain disruptions, alongside the burgeoning opportunities presented by generative AI (GenAI). The survey meticulously canvassed the insights of 100 CEOs from large-scale firms, each boasting annual revenues surpassing $500m, including a segment whose revenues exceed $10bn, to gauge the prime challenges and opportunities pivotal to fostering business growth amidst evolving economic landscapes.
A striking outcome of the survey highlights that executing Environmental, Social, and Governance (ESG) initiatives remains at the pinnacle of operational priorities for these CEOs, with 17% earmarking it as their chief focus. This precedence is closely followed by strategies aimed at cushioning capital and input costs against inflation (14%), and initiatives towards advancing digitization, enhancing supply chain resilience, and elevating customer experiences, each garnering 11%.
Rob Fisher, the ESG Leader at KPMG US, remarked, “CEOs are going beyond checking the compliance box on sustainability. They’re making it a core business imperative, leveraging cutting-edge data and AI capabilities to drive real-time strategies with measurable impact.” This sentiment is echoed in the finding that 55% of the CEOs foresee “significant returns” from their sustainability ventures in a span of 3-5 years, with an anticipatory 19% expecting these returns within just 1-3 years.
The survey further delves into the CEOs’ priority areas within their sustainability endeavours, identifying Operations as the top focus, followed by Product innovations and governance transparency protocols. Moreover, the report sheds light on the CEOs’ confidence in the U.S. economy’s growth prospects, coupled with expectations of an increased workforce in the coming year.
The integration and ethical deployment of GenAI also emerged as a notable theme, with a balanced view among CEOs on increasing investments in this domain and addressing ethical considerations, including consumer transparency and privacy measures.
KPMG US Chair and CEO Paul Knopp shared his insights, stating, “CEOs are thinking beyond complying with climate disclosure rules and focused on creating long-term value for their companies, ensuring the integration of sustainability into core business practices and operations. They see their sustainability strategy and reporting being supercharged by effective data management and GenAI, which can help their organizations make real-time, data-informed adjustments.”
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