PwC Global Investor Survey 2023: Institutional Investors on Top 7 Threats Invested Companies Will Face are Inflation, Macroeconomic Volatility, Geopolitical Conflict, Cyber Risks, Climate Change, Social Inequality & Health Risks, 94% Believes Greenwashing Taking Place with Corporate Reporting Contains Unsupported Claims
17th November 2023 | Hong Kong
PwC has released the PwC Global Investor Survey 2023, providing key investment insights from 345 investors (predominantly institutional investors, 65% with AUM of more than $1 billion). In the 2023 survey for 345 investors, their top 7 threats invested companies will face are Inflation 46%, Macroeconomic Volatility 39%, Geopolitical Conflict 34%, Cyber Risks 32%, Climate Change 32%, Social Inequality 21%, Health Risks 20%. The Top factors influencing value of companies in the next 3 years are Technological Change, Innovation, Emerging Technologies (Eg. AI, Metaverse, Blockchain). Use & deployment of Emerging Technologies in Investment Analysis – 77% rated important by institutional investors. Importance of Using Artificial Intelligence – 61% rated important by institutional investors. Top 4 Risks of Companies Using Artificial Intelligence – Data Security & Privacy 86%, Insufficient Governance Process & Controls 84%, Misinformation 83%, Bias & Discrimination 72%. Greenwashing (Believes corporate reporting contains unsupported claims) – 94%. Embed ESG into corporate strategy – Agree 70%, Neutral / Disagree 30%. Spend on ESG even if it reduces short-term profits – Agree 66%, Neutral / Disagree 34%. How companies manage sustainability-related risks & opportunities affects our investment decision-making – Agree 75%, Neutral / Disagree 25%. Companies should disclose the monetary value of the effect their operations or other activities have on the environment or society – Agree 75%. Information requirement for investment decision-making if companies meet ESG or Sustainability regulations & standards (CSRD, ISSB Standards) – Information is sufficient 57%. See below for key findings & summary | View report here
“ 345 Investors on Top 7 Threats Invested Companies Will Face are Inflation, Macroeconomic Volatility, Geopolitical Conflict, Cyber Risks, Climate Change, Social Inequality & Health Risks, 94% Believes Greenwashing Taking Place with Corporate Reporting Contains Unsupported Claims “
PwC Global Investor Survey 2023
PwC has released the PwC Global Investor Survey 2023, providing key investment insights from 345 institutional investors (65% with AUM of more than $1 billion).
Summary
- Investors – 345 investors & analysts (Predominantly institutional investors, 65% with AUM of more than $1 billion)
- Institutional Investors AUM – 65% with AUM of more than $1 billion
- Top 7 threats for invested companies – Inflation 46%, Macroeconomic Volatility 39%, Geopolitical Conflict 34%, Cyber Risks 32%, Climate Change 32%, Social Inequality 21%, Health Risks 20%
- Top factors influencing value of companies in the next 3 years – Technological Change, Innovation, Emerging Technologies (Eg. AI, Metaverse, Blockchain)
- Use & deployment of Emerging Technologies in Investment Analysis – 77% rated important by institutional investors
- Importance of Using Artificial Intelligence – 61% rated important by institutional investors
- Top 4 Risks of Companies Using Artificial Intelligence – Data Security & Privacy 86%, Insufficient Governance Process & Controls 84%, Misinformation 83%, Bias & Discrimination 72%
- Greenwashing (Believes corporate reporting contains unsupported claims) – 94%
- Embed ESG into corporate strategy – Agree 70%, Neutral / Disagree 30%
- Spend on ESG even if it reduces short-term profits – Agree 66%, Neutral / Disagree 34%
- How companies manage sustainability-related risks & opportunities affects our investment decision-making – Agree 75%, Neutral / Disagree 25%
- Companies should disclose the monetary value of the effect their operations or other activities have on the environment or society – Agree 75%
- Information requirement for investment decision-making if companies meet ESG or Sustainability regulations & standards (CSRD, ISSB Standards) – Information is sufficient 57%
PwC Global Investor Survey 2023
1) Investors on Top Challenges for Companies
2023 Survey – Top 7 Threats for Invested Companies:
- Inflation – 46%
- Macroeconomic Volatility – 39%
- Geopolitical Conflict – 34%
- Cyber Risks – 32%
- Climate Change – 32%
- Social Inequality – 21%
- Health Risks – 20%
2022 Survey – Top 7 Threats for Invested Companies:
- Inflation – 67%
- Macroeconomic Volatility – 62%
- Geopolitical Conflict – 37%
- Cyber Risks – 36%
- Climate Change – 22%
- Health Risks – 26%
- Social Inequality – 11%
2) Investment Value of Companies in the Next 3 Years
Top factors influencing value of companies in the next 3 years:
- Technological Change
- Innovation
- Emerging Technologies (Eg. AI, Metaverse, Blockchain)
Use & deployment of Emerging Technologies in Investment Analysis:
- Important – 77%
- Neutral / Less Important / Not Important – 23%
3) Artificial Intelligence
Importance of Using Artificial Intelligence:
- Important / Very Important – 61%
- Neutral / Less Important / Not Important – 39%
Top 4 Risks of Companies Using Artificial Intelligence:
- Data Security & Privacy – 86%
- Insufficient Governance Process & Controls – 84%
- Misinformation – 83%
- Bias & Discrimination – 72%
4) Greenwashing
Greenwashing:
- Believes corporate reporting contains unsupported claims – 94%
- Believes Corporate reporting are factual & with supported claims / Neutral / Not sure – 6%
5) ESG & Sustainability
Embed ESG into corporate strategy:
- Agree – 70%
- Neutral – 20%
- Disagree – 10%
Spend on ESG even if it reduces short-term profits:
- Agree – 66%
- Neutral – 19%
- Disagree – 16%
How companies manage sustainability-related risks & opportunities affects our investment decision-making:
- Agree – 75%
- Neutral – 15%
- Disagree – 11%
Important to Report:
- Cost to meet sustainability commitments – 76%
- Effect of sustainability risks & opportunities on financial statement assumptions – 75%
- Impact company has on the environment or society now and in the future – 75%
- Roadmap to meet sustainability commitments – 74%
Companies should disclose the monetary value of the effect their operations or other activities have on the environment or society:
- Agree – 75%
- Neutral / Disagree – 25%
Information requirement for investment decision-making if companies meet ESG or Sustainability regulations & standards (CSRD, ISSB Standards):
- Information is sufficient – 57%
- Not sure / information is insufficient – 47%
About the Survey – PwC Global Investor Survey 2023
In September 2023, we surveyed 345 investors and analysts across 30 countries and territories globally, and conducted 15 in-depth interviews. Respondents were predominantly institutional investors, comprising portfolio managers (19%), analysts (18%) and chief investment officers (17%), with 48% having more than ten years of experience in the industry. Their investments covered a range of asset classes, investing approaches and time horizons, and the assets under management (AUM) at their organisations range from <US$500 million to US$1 trillion or more; 65% of respondents are from organisations with a total AUM of more than US$1 billion.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 151 countries with over 360,000 people who are committed to delivering quality in assurance, advisory and tax services.
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