In the dynamic landscape of global finance, staying ahead of market trends and understanding investor sentiments is crucial for businesses and policymakers alike.
PricewaterhouseCoopers (PwC), a renowned multinational professional services network, has been at the forefront of providing valuable insights into the world of finance through its Global Investor Survey. As we step into 2024, let's explore the key findings and trends uncovered by PwC in their latest edition of the Global Investor Survey.
Before delving into the survey's findings, it's essential to understand the methodology employed by PwC. The survey is typically conducted annually, gathering responses from a diverse group of global investors, including institutional investors, asset managers, and private equity firms. The comprehensive method ensures a representative sample, providing a nuanced understanding of investor sentiments across regions and sectors.
Highlights and themes
The survey highlights the resilience of global investors in the face of uncertainties. Despite challenges such as geopolitical tensions and the ongoing impact of the COVID-19 pandemic, investors want to know how companies are managing sustainability and emerging technologies like AI, but they lack confidence in much of the information they have about both.
ESG Environmental, Social, and Governance (ESG) considerations continue to gain prominence in investment decisions. PwC's survey reveals a growing emphasis on sustainable and responsible investing, with investors prioritising companies that align with ESG principles. The data also shows that they want better information, including the cost of meeting sustainability commitments and a clear road map for achieving them, combined with a view of what it means for financial statement assumptions.
Technological Transformation
The survey sheds light on embracing digital innovation and the increasing integration of technology into investment strategies. From artificial intelligence to blockchain, investors leverage technological advancements to enhance decision-making processes and gain a competitive edge. 86% agree their company should invest more in technology to identify, track and measure supply chain risk, including 35% who strongly agree. PwC's findings explore the evolving landscape of financial technology (fintech). Investors are keenly aware of the risks associated with rapid technological advancements but are equally excited about the opportunities presented by fintech solutions, including decentralised finance (DeFi) and digital currencies.
The Future Outlook The survey provides a forward-looking perspective, offering insights into the investment trends. Whether it's the continued rise of sustainable investing, the evolution of digital assets, or the impact of geopolitical shifts, investors are preparing for a dynamic and transformative future. PwC's analysis goes beyond identifying trends and addressing the challenges and opportunities that investors anticipate in the coming years. 57% of investors said that if companies meet upcoming regulations and standards (including the CSRD, the SEC-proposed climate disclosure rule in the US, and ISSB standards), it will meet their information needs for decision-making to a large or very large extent. From regulatory changes to emerging markets, the survey equips businesses and policymakers with valuable foresight.
Conclusion In conclusion, PwC's Global Investor Survey 2023 serves as a compass for navigating the complex and ever-changing world of global finance. The insights gleaned from this comprehensive study empower investors, businesses, and policymakers to make informed decisions in a landscape marked by resilience, technological innovation, and a renewed focus on sustainability. As we move forward, the survey's findings will likely continue to shape discussions and strategies in the financial realm, guiding stakeholders towards a more prosperous and sustainable future.
Join us for part two where Samuel Reis WWG’s Sustainability Manager explores the symbiotic relationship between sustainability issues and corporate responsibilities, shedding light on how our products can be instrumental in aligning your business with a greener, more responsible future.
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