- 81% of Swiss CEOs expect the global economy to grow and three quarters are convinced that their sales will increase in the medium term
- China is significantly less important as a foreign trade partner
- 100% see cyber risks as main threat; climate change is in 5th place
- 65% believe they cannot achieve CO2 neutrality or net zero and 91% are not able to measure greenhouse gases
- Strategic Transformation boosts the transaction market
Zurich, 17 January 2022 – With the 2022 anniversary edition of the Annual Global CEO Survey, the auditing and advisory firm PwC is exploring the current and future challenges of CEOs worldwide for the 25th time. 81% of the 100 study participants in Switzerland are extremely optimistic that the global economy will grow in the next twelve months, despite the ongoing COVID-19 pandemic. This figure has increased by 14% compared to the previous year and is 4% above the global level.
Pandemic has resulted in pent-up demand
Optimism also dominates the sales performance expectations. 64% are very to extremely confident that sales will grow over the next 12 months; 74% are equally confident about sales growth over the next three years. Andreas Staubli, CEO of PwC Switzerland: “The growth optimism reflects strong demand, which returned quickly in the second year of the pandemic in 2021. What’s more, the economic forecasts are positive.”
China falls behind as a trading partner
In the 2022 edition of the survey, the cards are reshuffled for foreign trade markets. When asked about the relevance of countries with an impact on sales growth in the next twelve months, 52% of the survey participants name Germany (2020: 39%), 50% the US (2020: 45%) and 27% China (2020: 39%). Swiss CEOs apparently assume that it will become increasingly difficult for foreign companies to earn money in and with China due to the new five-year plan in the People's Republic.
Cyber risks are the no. 1 concern
Cyber risks lead the concern barometer again this year and were cited by 100% of respondents (global: 96%). Firstly, reports of cyber attacks are ubiquitous in the media. Secondly, a keener understanding of cyber attacks and their consequences has recently evolved. Many managers know people who have been affected in their professional network. 82% believe a cyber attack could make it impossible to sell products or services (global: 59%). Ultimately, the highly professionalised attackers target IT-based, business-critical processes such as sales, marketing, distribution or public relations – for example using extortion (ransomware).
Yes to sustainability, but how?
Climate change is the fifth most cited threat at 85%. Accordingly, the CEOs rate the urgency of doing business in a sustainable manner as high, with some possible approaches including a net-zero promise, CO2 neutrality or reporting according to ESG criteria (Environmental, Social, Governance).
CEOs are showing restraint in the implementation of such strategies: 45% have not made a CO2 neutrality commitment to date (global: 41%) and 55% have not defined a net zero target (global: 44%). 65% are pessimistic about ever achieving CO2 neutrality or net zero at all (global: 55%). Andreas Staubli, CEO of PwC Switzerland, comments on this reluctance: “Most industries have moved from crisis mode directly to a sustainability focus. But apparently the desire for more ESG (Environment, Social, Governance) is not universally compatible with the price elasticity of the markets.”
The definition and measurability of ESG targets is also a source of reluctance. 88% of the CEOs surveyed assume that their companies do not emit significant amounts of greenhouse gases. Only 44% are integrating quantitative greenhouse gas emission reduction targets into their long-term strategy. And 91% state that their company cannot currently measure greenhouse gas emissions.
Strategic changes activate transaction market
67% of the study participants stop projects with low potential or lack of focus each year or more frequently. 83% invest regularly (each year or more frequently) in high-potential projects. The response pattern of the strategy dynamics reflects the current state of the transaction market (M&A): currently, more corporate transactions are being completed than ever before. They offer interesting opportunities for concentration on the core business, inorganic growth or strategic consolidation. These kinds of adjustments take place in the context of a transformation that many companies are facing as a result of industry change or a focus on sustainability.
About the survey
The 25th Annual Global CEO Survey was conducted in November 2021 and published in January 2022. A total of 4,446 CEOs were surveyed in 89 countries around the world, including 100 CEOs in Switzerland. Of the 100 CEOs who participated in the Swiss edition, 35% represent the manufacturing industry, 27% the retail and consumer goods market, 15% financial services, 10% healthcare, 9% chemicals/metals/energy and 4% telecoms and technology. 50% of the participating companies employ fewer than 500 employees, 14% between 500 and 999 and 34% over 1,000. 28% of the companies are listed on a stock exchange, 72% are privately owned and 13% represent the public sector. 44% of the CEOs surveyed head Swiss family companies where at least 32% of the equity is held by the family.
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You can download the complete study at www.pwc.ch/ceo-survey-en. The global results of the 25th Annual Global CEO Survey can be found at www.ceosurvey.pwc
About PwC
PwC Switzerland is the leading audit and advisory company in Switzerland. At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 156 countries with over 295,000 people who are committed to delivering quality in assurance, advisory and tax services. PwC Switzerland has over 3,380 employees and partners in 14 locations in Switzerland and one in the Principality of Liechtenstein. Find out more and tell us what matters to you by visiting us at www.pwc.ch. ‘PwC’ refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
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