Swiss CEOs between growth euphoria and question marks about sustainability

With the 2022 anniversary edition of the "Annual Global CEO Survey", the auditing and consulting firm PwC is getting to the bottom of the current and future challenges facing CEOs worldwide for the 25th time. A total of almost 4,500 CEOs were surveyed worldwide, with just over 100 in Switzerland. Of these, 35 percent represent the manufacturing industry, 27% the retail and consumer goods market, 15% the financial services sector, 10% the healthcare industry, 9% the chemicals/metals/energy sector and 4% the telco and tech sector. 50% of the participating companies employ fewer than 500 people.

Pandemic has pent-up demand

81% of Swiss CEOs are extremely optimistic that the global economy will grow over the next twelve months, despite the ongoing COVID 19 pandemic. This figure is up 14% on the previous year and 4% above the global level.

Optimism also dominates the assessment of sales development. 64% are very to highly confident that sales will grow over the next 12 months; 74% are so for sales growth over the next three years. Says Andreas Staubli, CEO of PwC Switzerland, "The growth optimism reflects strong demand, which has returned quickly in the pandemic second year of 2021. In addition, economic forecasts are positive."

China falls behind as a trading partner

In the 2022 study edition, the cards are redistributed for foreign trade markets. When asked about the relevance of countries impacting sales growth over the next twelve months, 52% of study participants name Germany (2020: 39%), 50% name the U.S. (2020: 45%) and 27% name China (2020: 39%). Swiss CEOs apparently assume that it will become increasingly difficult for foreign companies to make money in and with China due to the People's Republic's new five-year plan.

Cyber risks as No. 1 concern among Swiss CEOs

Cyber risks lead the concern barometer again this year with 100% mentions (global: 96%). On the one hand, cyberattacks are omnipresent in the media. On the other hand, a heightened understanding of cyberattacks and their consequences has recently emerged. Many executives know affected individuals from their professional network. 82% believe a cyberattack could make it impossible to sell products or services (global: 59%). Ultimately, the highly professionalized attackers target IT-based, business-critical processes such as sales, marketing, distribution, or public relations - for example, through extortion (ransomware).

Sustainability yes, but how?

With 85% mentions, the threat barometer is the fifth highest for climate change. Accordingly, the CEOs rate the urgency of operating sustainably as high - for example with a net-zero promise, via CO2 neutrality or reporting according to ESG criteria (environmental, social, governance).

However, Swiss CEOs are cautious in implementing such strategies: 45% have not yet made a CO2 neutrality commitment (global: 41%) and 55% have not defined a net zero target (global: 44%). 65% are pessimistic about being able to achieve CO2 neutrality or net zero at all (global: 55%). Commenting on this hesitation, Andreas Staubli, CEO of PwC Switzerland, says: "Most industries have moved from crisis mode directly to a sustainability focus. But apparently the desire for more ESG (environment, social, governance) is not compatible with the price elasticity of the markets everywhere."

Restraint is also evident in the definition and measurability of ESG targets. 88% of the CEOs surveyed assume that their companies do not emit any significant amounts of greenhouse gases. Only 44% integrate quantitative greenhouse gas emissions reduction targets into their long-term strategy. And 91% state that their company cannot currently measure greenhouse gas emissions.

The full study can be found at www.pwc.ch/ceo-survey-de download