PwC report: Most CEOs view sustainability as an opportunity

A new PwC report finds that global CEOs are doubling down on sustainability initiatives. Most respondents find that corporate sustainability spending has not negatively impacted costs, and one-third have cited an increase in revenue. 

About the PwC report and its findings

The PwC 28th Annual Global CEO Survey was based on responses from 4,701 chief executives representing every region of the world economy. This trend of CEOs viewing sustainability as an opportunity is thought to be fuelled by the mounting evidence that green investments enhance profit margins and boost revenue. 

The report found that these sustainability investments were six times more likely to boost revenue than reduce it. Research from the Harvard Business School supports this, finding that companies transitioning their product portfolios to include sustainable solutions are witnessing quicker revenue growth. 

Moreover, two-thirds of the CEOs surveyed reported that green investments had either reduced costs or had no substantial impact on costs. Investors are also increasingly recognising the value of sustainability. According to PwC’s Global Investor Survey 2024, nearly 70 percent of respondents believe businesses should prioritise ESG and sustainability issues, even if it affects short-term profitability.

Regional difference

Although the financial outcomes of sustainable investments have been largely positive, their impact still varies by region. Chief executives in France and Germany were more likely to cite increased costs, with almost half reporting higher expenses tied to sustainability initiatives.

By contrast, only 20 percent of US chief executives reported cost increases, while 60 percent of those in Mainland China saw additional revenue, and 46 percent cited government incentives resulting from their climate investments. However, the report highlighted a global trend where aligning green investments with long-term business strategies contributes to stronger financial performance.

This has resulted in a shift in how businesses are measuring success, with 55 percent of CEOs globally tying executive compensation to sustainability metrics. The PwC report illustrates that the higher the percentage of compensation linked to sustainability, the greater the revenue generated from climate-conscious investments. 

UK dominates as a top global investment destination

The report identifies the UK as the second-most attractive destination for global investment, surpassing Germany and China for the first time in the survey’s 28-year history. The UK now ranks just behind the US, with 14 percent of chief executives naming it the top target for global capital expenditure. This growing confidence in the UK reflects a broader trend of business leaders expanding into new industries and markets to stay competitive.

Over the past five years, more than a third of chief executives have diversified into new sectors, with sustainability playing a key role in their strategies. Notably, 87 percent of UK chief executives have made sustainable investments during this period, underscoring UK Plc’s commitment to integrating climate action with business growth.

Final thoughts

This PwC report highlights a significant shift in the corporate mindset, with sustainability no longer being viewed as a cost burden but rather as a strategic driver of revenue, efficiency, and investment appeal. With sustainability-driven companies experiencing stronger financial performance and increased investor confidence, it’s clear that sustainable investments mitigate risks while unlocking new business opportunities. 

The bottom line is that those who fail to integrate sustainability risk falling behind, facing higher operational costs, reduced investor interest, and increasing regulatory pressure. Companies that invest in sustainability education position themselves to reduce costs, strengthen ESG strategies, meet compliance demands, and gain a competitive edge in an economy that increasingly rewards responsible business practices. 

As sustainability continues to shape investment decisions, corporate governance, and consumer expectations, businesses that embrace it today will lead the markets of tomorrow. The shift is happening; will your business be ahead of it or left behind?