Five years later, almost 70% of AWM CEOs expressed concern about climate in PwC’s 24th Annual Global CEO Survey, released in March 2021. As recently as 2016, for example, only 39% of asset and wealth management (AWM) CEOs we surveyed as part of PwC’s 19th Annual Global CEO Survey were concerned about the threats posed by climate change. These high commitment levels are relatively new, suggests separate PwC research. Our new research reinforces those priorities, and offers fresh insights about the leadership required to lead such a transformation, the way companies tell their ESG “story,” and the standards and transparency that can help with both. Our colleagues have written previously about the tight relationship between reimagined corporate reporting, strategic reinvention, and business transformation to drive ESG and value creation in tandem. Many also described significant reservations about the quality of the information available to them when evaluating ESG priorities, including information on the carbon emissions of their investments.įor leaders navigating these crosscurrents, the question is how to deliver both the business transformation necessitated by the changing climate and the returns investors pursue as they discharge their fiduciary duties. At the same time, most (81% of) respondents expressed reluctance to take a hit on their returns exceeding 1 percentage point in the pursuit of ESG goals. In a wide variety of ways, those investors expressed commitment to ESG goals in their investing and as a priority for their portfolio companies. We surveyed 325 investors globally, the majority of whom were self-identified active asset managers making investments for the long term. New PwC research, conducted in September 2021, reflects the power of those crosscurrents. Another is the growing impact of the environmental, social, and governance (ESG) movement, as it causes major investors, and the companies they hold in their portfolios, to rethink the risks of traditional business models, and the opportunities for more sustainable value creation in the future. One inescapable reality is that decarbonizing the global economy is a monumental task, with far-reaching economic trade-offs that will challenge countries, industries, companies, and individuals. As we write, on the eve of the COP26 climate change conference, powerful crosscurrents are confronting leaders charting a course for their institutions and the planet.
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