The EY CEO survey shows that CEOs prioritize AI transformation for productivity and aim for net zero and new revenue streams in the long term.

The 2023 EY Sustainable Value Study shows CEOs are committed to decarbonizing their businesses to reach net zero, with over half prioritizing it. However, a quarter has de-prioritized sustainability due to short-term financial or economic challenges. Technology and AI are key solutions, the authors note.

Key findings:

CEOs recognize the risk of stranded assets due to ESG factors and must balance future-proofing portfolios to ensure resilience and global sustainability trends.

Incentives are a more effective policy tool than penalties for accelerating companies’ net-zero journey, with government investment in renewable energy infrastructure supporting growth and sustainability.

CEOs are more confident in controlling their resources and managing their limitations.

Government, and institutional support a key:

Institutional investors support increased collaboration between governments and regulators to tackle climate change impacts, with half of CEOs indicating proactive sector input in sustainability regulations.

CEOs agree that coordinated action by governments worldwide is crucial for effectively addressing climate change impacts.

Government investment in infrastructure is seen as a supportive tool for driving companies’ growth and sustainability agenda.

Sustainability issues are a higher priority than 12 months ago, with over half of CEOs globally focusing on it.

Greater collaboration between corporates, investors, and policymakers could accelerate the road to net zero and unlock a more sustainable future.

The global GDP is expected to rise between $1.7t and $3.4t over the next ten years, driven by AI-powered technology.