“The need for reinvention will be intensified by emerging challenges which, alongside risks, also bring new benefits and opportunities. These can significantly enhance productivity through automation, AI, 3D printing, and other disruptive technologies. Further opportunities lie in improving sustainability and circularity in response to climate change.”
The accelerating pace of change necessitates faster decision-making. However, in a capital-intensive sector like EUR, characterised by its long life cycles, companies are compelled to make decisions well in advance. This results in a considerable time investment for defining and implementing strategic steps, a delay that must be offset through other means.
To support EUR industry companies on their reinvention journey, PwC recommends benchmarking against the Global CEO Survey by considering three key questions:
1. Is your company embracing Generative AI (GenAI) or are trust issues holding you back?
In just three years since GenAI captured the attention of most executives, companies worldwide have rapidly adopted it. Many CEOs are already witnessing promising results.
Approximately a quarter of EUR CEOs globally credit GenAI with boosting revenue and profitability, and 41% anticipate even greater profit growth in the year ahead. Moreover, 49% of EUR CEOs report that GenAI has improved employee efficiency.
To what extent did GenAI impact the following in your company in the last 12 months?
Yet only 26% express trust in this technology, underscoring the urgent need for responsible AI implementation.
Therefore, while the benefits are clear, trust remains key to unlocking its full potential.
2. Do you view climate action as a boost to your bottom line, or as a budget buster?
EUR companies are investing in climate-friendly initiatives, and many are seeing financial gains. 17% have reported reduced costs, and an impressive 37% of EUR CEOs have even reported increased revenues.
To what extent have climate-friendly investments* initiated by your company in the last five years impacted the following areas?
* Examples of climate-friendly investments include transitioning to energy-efficient operations, developing greener products and services, and implementing emission-reducing technologies
Furthermore, investors are driving change: nearly 70% believe companies should invest in sustainability, even if it affects short-term profits, according to PwC Global Investor Survey. Notably, two-thirds of EUR CEOs (68%, the highest proportion among all surveyed industries) have their compensation linked to sustainability metrics, which often correlate with increased revenue from related investments.
So, sustainability isn't always a cost – it can drive growth. You may also find relevant a recent Harvard Business School research (featured in PwC’s strategy+business), which revealed faster revenue growth among firms transitioning their product portfolios towards climate solutions.
3. Is your business doing enough to keep pace with evolving industry and customer demands?
Half of EUR respondents are not confident in their company's revenue growth prospects for the next three years. Only 22% expect to remain in their current role for more than five years. Looking further ahead, 42% of CEOs in the Energy, Utilities & Resources (EUR) sector globally believe their companies won't survive the next decade if they continue their current trajectory.
These companies are actively transforming, with 82% revising their budgeting, 75% reallocating human resources, and 73% adjusting strategic planning. Furthermore, 36% of EUR CEOs said their companies are venturing into new sectors, and 33% reported increased revenue from competing in those sectors. Simultaneously, 31% targeted a new customer base (e.g., selling to companies in new industries or consumers in new markets), and 27% developed innovative products or services (including digitising analogue products).
Nevertheless, on average, only 7% of revenue over the past five years has come from entirely new businesses.
What proportion of your company’s revenue in the last five years came from each of the following sources? (showing mean values)
The way forward is clear: to thrive, companies must reinvent themselves. This means leveraging GenAI, investing in climate-friendly initiatives, and capitalising on opportunities in evolving industries.
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Comprehensive report CEO Survey
About the survey
We surveyed 4,701 CEOs in 109 countries and territories from 1 October through 8 November 2024, including 153 CEOs from Central and Eastern Europe. The global and regional figures in this report are weighted proportionally to individual country nominal GDP, so CEOs’ views are broadly representative across all major regions. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. All quantitative interviews were conducted on a confidential basis.
