Canadian CEOs Prioritize ESG, AI, and Resilience Amid Economic Challenges

TORONTO, Canada, October 2, 2024 – In an era of economic volatility and rapid technological progress, Canadian executive heads are leading their organizations with a focus on resilience, innovation and sustainability. The recent release of KPMG’s 2011 Canadian CEO Perspectives sheds light on the strategies and priorities that define leadership in today’s complex business environment. With information from key Canadian leaders, the report explores trends in environmental, social and governance integration (ESG), the adoption of artificial generating intelligence (AI), and preparations for economic uncertainty.

Over 80% of Canadian CEOs express confidence in Canada’s economic growth over the next three years. However, their optimism is tempered by challenges such as the fight against the housing market, inflationary pressures and changing consumer behaviour. Globally, CEOs are even more cautious, with only 69% expressing confidence in the international economic perspective. This quality reflects the need to balance national growth strategies and carefully assess risks abroad.

The KPMG survey also highlights the growing priority of ESG CEOs. Once considered a secondary initiative, GS became a key element of the business strategy. CEOs recognize that taking sustainability, social responsibility and governance into account is not just compliance, but the creation of long-term value. However, the report reveals a gap between ambition and implementation. Many organizations are still in the early stages of integrating GSS principles into their operational frameworks, highlighting opportunities for leadership and innovation in this area.

The General AI also attracted the attention of Canadian CEOs. With more than 70% waiting for measurable benefits in IA investments over three to five years, the potential for IA transformation is increasingly recognized. AI applications range from predictive analysis in supply chain management to improved customer experience through customized solutions. However, the report indicates a significant difference in competencies, as only 37% of CEOs believe their teams are well prepared to take advantage of the full potential of IA. Reducing this gap will require strategic investments in training and workforce development.

Cybersecurity remains a key priority and 52% of Canadian CEOs consider it a major concern. As organizations adopt digital solutions and interconnected systems, the risk of cyber attacks increases. The report highlights the need for proactive cyber security measures, including strong defence mechanisms and comprehensive response plans. CEOs recognize that safeguarding digital infrastructure is essential not only to ensure business continuity, but also to maintain stakeholder confidence in an increasingly digital world.

Beyond these focal points, the report explores how Canadian CEOs adapt their leadership styles to manage uncertainty. Agile decision-making, partnerships and the emphasis on retention of talent are becoming key issues. The CEO also takes advantage of scenario planning and stress testing to prepare for potential economic shocks, ensuring that their organization remains resilient to adversity.

Canadian CEO Outlook 2024 provides a detailed roadmap to address today’s challenges and take advantage of new opportunities. From sustainability initiatives to technological innovation, the knowledge shared in the report underscores the importance of proactive and visionary leadership in shaping the future of businesses.