A survey of more than 400 Australian CEOs, business leaders and non-executive directors has found that 72 per cent believe that embracing the economic opportunities that climate change and energy transition present is a key challenge for the country.
This was identified as the top social issue by business leaders in the survey conducted by KPMG, ahead of preparing for a future skills gap (61 per cent) and shifting levels of regional/global tension (45 per cent).
“The great existential threat of our lifetime – global warming and climate change – is seen by business leaders as an opportunity to contribute to improving the outlook, via transformation and reversal,” said KPMG chief economist Dr Brendan Rynne.
“Not only is working on climate change and energy transition seen as a social benefit but it is also recognised as a key area for potential economic opportunities.”
Dr Rynne added that it was notable that shifting levels of regional and global tension had been highlighted as one of the top challenges.
“Given that international co-operation will be crucial in meeting decarbonisation targets, that was a sobering finding,” he said.
In terms of potential challenges for their own organisation in the year ahead, 69 per cent of business leaders said they were concerned about talent acquisition, retention and upskilling to meet the demands of a more digitised future.
Concerns about digital transformation also saw around half of respondents list cyber vulnerability and remote working among their top challenges.
“Overwhelmingly, the top three concerns for Australian leaders next year are about responses to a post COVID world,” said KPMG Australia national chairman Alison Kitchen.
“We see this reflecting what can be characterised as ‘the Great Renewal’ – a time when businesses will be focused on people and the environments in which they operate.”
Business leaders were also asked to identify the top challenges for their organisation over the next three to five years, with digital transformation and optimisation ranking first (48 per cent) closely followed by talent acquisition, retention and upskilling (47 per cent).
“While digital and talent remain the top two concerns among executives for the next three to five years, it’s interesting that cyber vulnerability fell to 35 percent and the remote working issue plummeted in priority list to just 10 percent in the medium term,” said Ms Kitchen.
About one-third of respondents said designing and implementing an ESG strategy that will deliver benefits in the short and long term was a top challenge for their organisation in the year ahead and over the next three to five years.
Growth, innovation and new technologies also emerged as greater issues for business leaders in the longer term compared with 2022.
“It is clear that as Australia starts to emerge fully from the lockdowns of the last two years, having enough skilled talent to meet customer needs is the key challenge concerning all businesses – and they don’t see this changing in the next few years,” Ms Kitchen concluded.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
