Infrastructure and transportation CEOs worldwide are increasingly prioritizing Environmental, Social, and Governance (ESG) strategies and generative AI (Gen AI) investments to bolster customer relationships, meet decarbonization targets, and drive business growth, according to a recent survey by KPMG. The KPMG Infrastructure and Transport CEO Outlook, now in its tenth year, surveyed 120 CEOs globally and highlights the sector’s focus on sustainability and emerging technology against a backdrop of anticipated business growth in earnings and workforce.
The survey indicates that 57% of CEOs believe stakeholder expectations on ESG are evolving faster than they can adjust their strategies, with more than half concerned that inadequate climate adaptation could negatively impact growth in the short to medium term. As public trust in governments declines, 62% of sector leaders say the public expects businesses to address societal challenges, and 71% are willing to divest profitable segments if they harm their company’s reputation.
GenAI in spotlight
Amid these priorities, Gen AI stands out as a major focus for CEOs, with 68% identifying it as a top investment priority despite economic uncertainties. While CEOs acknowledge implementation challenges like data protection and potential bias, they foresee a positive influence on jobs. In fact, 94% of surveyed CEOs plan to increase headcount over the next three years, with 38% expecting workforce growth of more than 6%.
On ESG, sector leaders emphasize the importance of decarbonizing supply chains to achieve net-zero targets, viewing it as a critical hurdle.
Manish Aggarwal, Partner, Co-Head – Deal Advisory, and Head – Infrastructure, Disinvestments, and Special Situations Group, KPMG in India said –The race to embrace emerging technologies, such as Gen AI, has risen up the agenda for CEOs across the infra and transport sector. But as with many sectors, the focus on climate risk continues to be at the forefront with the decarbonizing of supply chains being marked as the top barrier to achieving net zero for sector CEOs. Coming to India, we are likely to see the implementation of one of the largest infrastructure programmes in the 21st century amongst large economies and we believe, creating fiscal sources of capital would be key to this initiative.
