Are you worried your organization could be falling behind competitors? Could it be at risk from factors like new technologies making your products or services obsolete?
Plenty of CEOs and CFOs are privately nodding “yes” to both questions. In fact, nearly 40% of execs are very concerned their companies are in danger, according to a survey by PricewaterhouseCoopers.
When asked “If your company continues running on its current path, for how long do you think your business will be economically viable?,” 39% answered 10 years or less.
Just over half of 4,410 CEOs “cited changing customer preferences, regulatory change, skills shortages and technology disruption [as driving forces]. Roughly 40% flagged the transition to new energy sources and supply chain disruption,” the PwC survey found.
How far will CEOs go to decarbonize?
We’ve touched on finance execs’ tech concerns, chief of which tends to be “Are we keeping up?” in recent months. Our recent article Will you be able to depend on your Finance tech stack in an uncertain economic climate? delved into what cutting-edge finance teams will need to do to keep up with tech trends and changes.
Energy is also a major worry for companies primarily due to political and stakeholder pressure to reduce emissions of greenhouse gases (GHGs) such as carbon dioxide, according to the PwC survey. So it’s no surprise that 27% of CEOs surveyed said they’ve made moves to cut GHGs and 39% are in the process of doing so.
Yet the majority of execs aren’t willing to hurt their companies’ profitability for the sake of climate change efforts. The proof: 54% say they won’t apply the social costs of carbon in their decision-making.
Could be that’s the smart move going forward, especially if energy and supply chain reliability are crucial to your company’s profitability and long-term health. Renewable energies such as solar and wind are a growing source of electricity generation, but keep in mind electricity is only a 20% slice of the overall energy pie.
Despite massive investments and subsidies toward renewables, oil, gas and coal are more cost-effective and reliable than renewables. As a result, businesses in China and India, where coal production is on the upswing, are most likely to fill the energy and supply chain needs of businesses in coming years.
