CEOs Calling for ‘Radical Change’ to Survive Climate Threats

A recent survey of CEOs in the European Union identified the big risks over the next five years, and they’re viewing climate change as an oncoming danger that could outpace every other business concern. Climate change is currently the fastest-growing threat to companies in the EU, according to PwC’s annual CEO survey, which polled 1,254 CEOs in 20 EU member states. Nearly a quarter of those surveyed identified climate change as a rising risk, while others are falling. The top ranked threats to business in a five-year timeline are:

1. Inflation – 30%
2. Geopolitical conflict – 30%
3. Macroeconomic volatility – 29%
4. Cyber risk – 28%
5. Climate change – 24%
6. Health risks – 10%
7. Social inequality – 6%

As a consequence, EU CEOs currently lead in climate initiatives (either in-progress or completed) at 75%, compared to 70% in Asia-Pacific and 59% in the United States. 71% CEOs plan to introduce climate-friendly products or processes, compared to 65% in Asia-Pacific and 59% in the US. This trend reflects 37% of CEOs’ concerns over keeping their businesses viable in the next 10 years and seeing the need for “radical change” to survive. It also mirrors the interests of the incoming workforce. A recent study from the European Investment Bank polled young Europeans and found 76% aged 20-29 say the climate impact of prospective employers is an important factor when job hunting. Click here to read the complete survey.