2024-04-29-安永-How_CEOs_juggle_transformation_priorities_–_the_art_of_taking_back_control_20页_4mb

CEO Imperative Series: Balancing Transformation Priorities

Key Insights from EY CEO Outlook Pulse Survey (April 2024)

1. AI Transformation Drives Current Priorities

• Focus on Productivity: CEOs prioritize investing in technology (especially AI) to enhance growth and operational efficiency in the short-term (47%).
• Shift to Sustainability & Innovation: Over the next three years, priorities shift to decarbonization (net-zero targets) and creating new revenue streams (43%).
• M&A Trends: Acquisitions focus on technology, new capabilities, or startups, with a majority also planning divestitures (71% vs. 42% plan M&A).

2. Shifting Focus to ESG for Net-Zero Future

• Sustainability Priority: 54% of CEOs consider sustainability a higher priority now vs. 12 months ago.
• Partnership Imperative: CEOs and investors agree that government, corporate, and investor collaboration is crucial for accelerating sustainability through policy, incentives, and infrastructure investment.
• Investor Concerns: Institutional investors fear stranded assets (67%) and focus on balancing growth (60%) with sustainability risks.

3. M&A Momentum Continues in 2024

• Record Deal Activity: Global M&A increased 36% YoY in Q1 2024; mega-deals (US$10B+) remain prominent.
• CEO Intentions: 71% plan divestitures to refocus on core operations; M&A targets acquiring innovative capabilities and scaling market presence.
• Investor Outlook: 61% expect a stable deal environment; 34% anticipate acceleration. Success driven by clear return-of-investment strategies.

Key Recommendations

1. Align Technology Investment: Prioritize AI integration for immediate productivity gains while preparing for sustainable innovation.
2. Collaborate on ESG: Engage governments and investors in creating incentives and regulatory frameworks for net-zero transition.
3. Balance M&A Strategy: Focus on sustainable exits/entrances, strengthening financial case for value creation.

Report Overview

The survey highlights three key shifts in CEO priorities: from short-term productivity via AI to long-term sustainability and integration via M&A. Regional and stakeholder alignment reinforces the need for strategic, collaborative action.