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Survey: One third of CEOs report increased revenue from climate-friendly investments
One in three CEOs report that climate-friendly investments made over the last five years have resulted in increased revenue, according to the Pwc’s 28th Annual Global CEO Survey.
In addition, two-thirds say these investments have either reduced costs or had no significant cost impact. In addition, two-thirds say these investments have either reduced costs or had no significant cost impact.
As the climate transition continues to impact businesses, CEOs continue to take action. When CEOs asked to take stock of the financial impact of climate related investments over the last five years, the survey found that these moves were six times more likely to have resulted in increased revenue (33%) than decreased revenue (5%). In addition, nearly two-thirds of CEOs reported that climate related investments had either reduced costs or had no significant impact on costs.
However, challenges remain around initiating climate related investments; CEOs that made such investments cite regulatory complexity as the top factor (24%) inhibiting their companies’ ability to initiate those investments, as opposed to lower returns on investment (18%) or lack of buy-in from management or the board (6%).
The survey, which included 4,701 CEOs across 109 countries and territories, found out that CEOs are reporting tangible impact from GenAI. More than half (56%) report seeing efficiency gains in their employees’ time over the last 12 months, and one-third saw revenue (32%) increases.
However, performance is somewhat below expectations expressed last year. In 2024, 46% said they expected to see profitability improvements. A year later, when we asked if they had seen those gains, only 34% said they had. Trust in AI remains a hurdle to more widespread adoption. Only a third of CEOs said they have a high degree of trust in embedding the technology into key processes in their company.
Despite this, optimism about GenAI’s impacts on profitability is slightly up on last year – with 49% expecting an increase in the next 12 months. Roughly half (47%) expect to integrate AI (including GenAI) into their technology platforms over the next three years, 41% plan to integrate it into core business processes and 30% have plans for new products and service development.
Carol Stubbings, Global Chief Commercial Officer, PwC, said “Three-plus decades of digitisation have started to break down formerly impermeable boundaries between sectors, while the combined impact of the climate transition, AI, and other megatrends will hasten the process of reconfiguration. This survey shows that business leaders are facing this future with a combination of optimism about the economy and realism that business needs to fundamentally reinvent how it creates value if it is to thrive in the future.”
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