KPMG Japan “KPMG Global CEO Survey 2024” announced

[KPMG Japan] “KPMG Global CEO Survey 2024” announced ​
KPMG Japan Press release: September 27, 2024 “KPMG Global CEO Survey 2024” announced CEOs invest heavily in AI and talent to navigate turbulent global situation KPMG
International (Chairman: Bill Thomas) conducted a survey on the future outlook and important measures of executives around the world. /kpmg-global-ceo-outlook-survey-2024.html”
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;” target=”_blank” rel=”nofollow ugc noopener”> “KPMG Global CEO Survey 2024” announced. The survey surveyed more than 1,300 business executives from 11 countries and 11 industries in August 2024 to provide their outlook on the economic and business outlook over the next three years. The main points of this survey are as follows. 72% of CEOs remain confident about the outlook for global economic growth 92% of CEOs are considering hiring more people AI remains the most important investment for 64% of CEOs, and 76% of CEOs think AI will have no impact on jobs Supply chain challenges, operational risks and cybersecurity are the biggest threats to growing companies, followed by geopolitical uncertainty, which ranked highest in the previous survey 83% of CEOs expect to return to working five days a week within three years, up from 64% in the previous survey According to this survey, the percentage of CEOs who are confident in the outlook for global economic growth over the next three years is lower than it was in 2015 (93%) when the survey began, but it remains at about the same level as last year and the year before. This was a solid result of 72% (Figure 1). This confidence is also reflected in future hiring plans, with 92% of CEOs indicating their intention to increase the number of employees in 2024, the highest percentage since 2021 (Figure 2). However, 72% of CEOs say they feel more pressure than last year to lead large companies and ensure long-term business success, with supply chain challenges posing the biggest threat to growth. This was followed by operational risk, cybersecurity, and last year’s top topic, geopolitical uncertainty (Figure 3). Figure 1: CEOs’ confidence in the global economic growth outlook over the past 10 years Image
URL: https://prcdn.freetls.fastly.net/release_image/141127/19/141127-19-296b269fea5ce5d27af227e36dc75175-893×450.jpg Figure 2: Percentage of CEOs expecting an “increase in the number of employees” over the past 10 years
https://prcdn.freetls.fastly.net/release_image/141127/19/141127-19-c80c84301ee42a2e5817146cd34c2275-938×455.jpg Figure 3: Ranking of “threats to growth” over the past 10 years Image
URL: https://prcdn.freetls.fastly.net/release_image/141127/19/141127-19-c2e72f65075b57a46c2ea5b69a14dac2-945×508.jpg Bill Thomas, Global Chairman and CEO of KPMG International, said: “The past decade has seen a period of volatile change, with pandemics, inflation, and the rise of AI, but CEOs are insisting on the need to invest in the future more tenaciously, more quickly, and more than ever. CEOs who create bold, forward-looking strategies and make appropriate investments in technology and talent will have a long life ahead of them. Until now, CEOs have sought all means to build trust with stakeholders, including investments in innovation and technology, growth strategies that center on people, and We have renewed our recognition that ESG and sustainability activities are the source of value creation.” Investing in innovation Economic uncertainty (53%) and speed of AI adoption (50%) are top issues for today’s CEOs. And 64% of CEOs see investment in innovation and technology, including AI, as a driver of growth, and 63% of CEOs believe they will see a return on investment within the next three to five years. It is clear that CEOs recognize that people and their capabilities will play a central role in realizing the potential of generative AI. The top three benefits of implementing AI are increased efficiency and productivity, upskilling employees for the future, and enhancing organizational innovation. On the other hand, CEOs also recognize the risks posed by moving too quickly to implement new technologies. More than half of CEOs (61%) cite ethical challenges as the most difficult to address when implementing AI into their business, with lack of regulation (50%) and technical skills and abilities (48%) ) are cited as concerns. While 76% of CEOs believe AI will have no impact on employment, only 38% believe their employees have the skills to take full advantage of the benefits of AI. 58% say they need to reevaluate the skills needed for younger employees. People first CEOs have been working on work style reforms as employees seek work-life balance, flexible working styles, and alignment of personal and corporate values. Successful CEOs put people at the center of their growth strategies, attracting a diverse workforce and building better relationships with employees to increase growth and productivity. The survey also revealed that CEOs expect to return to working five days a week in the near future. In fact, 83% of CEOs expect to return to working five days a week within the next three years, up from 64% in 2023. Furthermore, 87% of CEOs say that employees who come to work more often may be rewarded with more attractive work opportunities, raises, and promotions. While there is debate over in-office vs. remote work, CEOs also recognize talent issues that will impact future growth. Roughly a third (31%) of CEOs are concerned about many employees retiring in the near future and not having enough skilled workers to replace them. With talent shortages a concern, 80% of CEOs say their companies should continue to invest in skills development and lifelong learning in local communities to retain talent. Commitment to ESG Although CEOs have long recognized ESG and sustainability as sources of value creation, in 2015 they were not prioritizing environmental risks. However, this survey found that the downsides of not meeting ESG expectations include giving competitors an advantage (24%), becoming a threat to one’s own tenure (21%), and difficulty securing talent. (16%) CEOs are becoming more cautious about ESG issues that impact a company’s trust and reputation. Three-quarters (76%) of CEOs say they are willing to sell a business that is profitable but would damage the company’s reputation. Additionally, 68% said they would voice their opinion on ESG issues that are politically or socially controversial, even if the board had concerns. However, more than half of CEOs (66%) admit that they will not be able to face the harsh evaluations and high expectations expected from stakeholders and shareholders on ESG in the future, suggesting that they will take some action. As stakeholder and external pressures increase, the way we communicate our ESG efforts is changing. 69% of CEOs said they are maintaining their climate-related strategies but changing the language and terminology they use to align with stakeholder needs. 30% of CEOs say the complexity associated with decarbonizing supply chains will be the biggest barrier to meeting climate goals in 2025, when companies will start reporting on their environmental goals. Masu. This problem is exacerbated by current geopolitical tensions around the world and developments affecting key international trade routes. Next generation CEO Finally, the study also revealed intergenerational changes. Younger leaders (78% of 40-49 year olds) feel more pressure to maintain business growth over the long term than older leaders (68% of 60-69 year olds), while at the same time It also indicates a high level of confidence in successfully dealing with important issues. Although they are less confident than older leaders in tackling all ESG issues at the same time, they do demonstrate confidence in their ability to face harsh external evaluations of their ESG initiatives. 43% of CEOs are between the ages of 40 and 49, compared to 33% of CEOs between the ages of 50 and 59 and 30% of those between the ages of 60 and 69. (This press release was published by KPMG International on September 18, 2024 Press release This is the Japanese translated version. For content and interpretation, the original English text takes precedence. ) About “KPMG Global CEO Survey 2024” The 10th edition of the KPMG Global CEO Survey 2024 was conducted among 1,325 business executives from July 25 to August 29, 2024, and provides insights into CEO mindsets, strategies, and planning tactics. We are investigating. It targets companies with annual sales of US$500 million or more, with one-third having annual sales of more than US$10 billion. The survey covers 11 major countries (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK, and US) and 11 industries (asset management, automotive, banking, consumer/retail, energy, and infrastructure). , insurance, life sciences, manufacturing, technology, and
communications). Note: Some numbers are rounded off, so the total may not necessarily add up to 100%. About KPMG KPMG is a global
organization of independent professional firms providing audit, tax and advisory services. We serve more than 273,000 people in member firms in 143 countries and territories around the world. Each KPMG firm is a separate legal entity. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its affiliated entities do not provide any services to clients. The member firms in Japan are as follows. Limited Liability Azsa Audit Corporation, KPMG Tax Accountant Corporation, KPMG Consulting Co., Ltd., KPMG FAS Co., Ltd., KPMG Azsa Sustainability Co., Ltd., KPMG Healthcare Japan Co., Ltd., KPMG Social Insurance and Labor Consultant Corporation, KPMG Ignition Tokyo Co., Ltd., KPMG Advisory Co., Ltd. light house