GLOBAL EDUCATION
Kent
Business School Alumni University of Kent
Hilson isn ’ t alone in thinking that the recent economic downturn could hamper sustainability efforts . A recent Gartner Survey of 128 CFOs and CEOs identified the most selected areas that will likely be cut first in the face of continued economic disruption : with 39 % of the vote share , investments for improved sustainability and reduced environmental impact was identified as the second most likely area to face cuts , after mergers and acquisitions . “ Cuts to M & A are an obvious choice after record activity in 2021 and with rising interest rates significantly increasing the cost of financing such deals ,” says Randeep Rathindran , Vice President of Research in the Gartner Finance practice . “ It ’ s more surprising to see sustainability so close to the chopping block , because CEOs rated it as a top strategic priority for the first time in 2022 , and ESG disclosures are increasingly becoming enshrined in legislation .”
Meanwhile , 46 % of CEOs and CFOs said spending on workforce and talent development would be the last area to cut , and 45 % of respondents said they would cut digital investments last . Technology investments are also the least likely to be cut first , with just 23 % of respondents placing it in their top two .
“ Perhaps the biggest barrier to strengthening corporate approaches to ESG is the lack of education on how to operationalise it in different contexts ,” says Hilson , adding that such education is required
46 September 2022