CEOs See Green: Climate Investments Are Paying Off

Key Takeaways:

• Sustainability Pays: One in three CEOs report increased revenue from climate-friendly investments over the past five years.
• AI Boosts Efficiency: Over half of CEOs say generative AI has improved workforce efficiency, with 34% citing increased profitability.
• Slow Reinvention Risks Viability: 40% of CEOs believe their company won’t be viable in a decade without significant transformation.

CEOs Embrace AI and Climate Investments

PwC’s 28th Annual Global CEO Survey, covering 4,701 executives worldwide, highlights that while some companies are rapidly integrating AI and sustainability efforts, others lag behind, risking long-term viability.

“The future is already here—it’s just not evenly distributed,” author William Gibson once wrote. That sentiment rings true as companies navigate generative AI, climate change, and evolving business models.

CEOs face a choice: accelerate reinvention or hope current strategies remain effective in a rapidly shifting landscape.

Generative AI: Productivity Gains and Challenges

AI adoption is surging, with early results showing promise:

• 56% of CEOs say AI has improved workforce efficiency.
• 32% report increased revenue, while 34% cite higher profitability.
• 49% expect AI to boost company profits in the next year.

Despite optimism, trust remains a challenge. Only 33% of CEOs express confidence in AI-integrated processes, underscoring the need for responsible AI practices.

Climate Investments Yield Financial Returns

Sustainability is proving profitable, with:

• One-third of CEOs reporting increased revenue from climate investments.
• Two-thirds stating these investments have reduced costs or had no financial impact.

However, regional disparities exist. While 60% of Chinese CEOs see revenue gains from sustainability initiatives, only 20% of U.S. counterparts report the same.

Investor sentiment aligns with these findings—nearly 70% of investors believe companies should prioritize sustainability, even at the cost of short-term profits.

Business Reinvention is Slow but Necessary

Despite recognizing the need for transformation, reinvention efforts are sluggish:

• Only 7% of revenue from the past five years stems from new business ventures.
• 42% of CEOs fear their company won’t be viable in a decade without change.

Industries under the most pressure to evolve include media, technology, telecom, and industrial manufacturing. Even pharmaceutical CEOs are increasingly concerned, with 45% questioning their company’s long-term viability—up from 28% in 2023.

Outlook and CEO Confidence

CEOs are optimistic about global growth:

• 60% expect economic conditions to improve in 2025, up from 38% last year.
• 42% plan to increase headcount, while only 17% foresee reductions.

However, concerns about macroeconomic volatility remain, as well as risks from geopolitical tensions and cyber threats.

Next Steps for CEOs

1. Scale AI Responsibly: Invest in workforce training and integration strategies to maximize AI’s potential while mitigating risks.
2. Maximize Climate Investment Returns: Identify opportunities in clean energy, sustainable supply chains, and regulatory incentives.
3. Accelerate Business Model Reinvention: Focus on innovation, resource reallocation, and cross-sector collaboration to stay ahead.
4. Enhance Decision-Making Quality: Implement structured, data-driven processes to navigate uncertainty effectively.

The survey underscores a critical reality: CEOs who embrace AI and sustainability-driven reinvention will lead the future. Those who hesitate risk being left behind.