KPMG’s ‘CEO Outlook Saudi Arabia 2021’ reports that Saudi CEOs are increasingly integrating; environmental, social, and governance (ESG) practices into their business.
CEOs in Saudi Arabia currently expect aggressive growth through acquisitions and other inorganic methods. According to KPMG’s ‘CEO Outlook Saudi Arabia 2021’ report.
Nearly 86 percent of CEOs in the kingdom are focusing on mergers and acquisitions (M&A) as the engine of growth in the next three years. 88 percent believe that they need to be fleetfooted in investments to digital opportunities.
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ESG investment and Saudi businesses
The KPMG report also indicated that 84 percent of the CEOs have confidence in growth; with 90 percent of the polled CEOs expecting their company’s to exceed pre-pandemic levels.
The survey conducted among 1,325 CEOs in the kingdom represents companies with revenues higher than $500 million; and 60 percent have revenues above $1 billion.
As a result of increasing stakeholder pressure, CEOs are also placing people first to drive societal return; with 92 percent of surveyed CEOs shifting their focus to the social component of their ESG programs. On the other hand, a mere 30 percent felt they struggle to meet diversity and inclusion expectations, compared to 56 percent globally.
Regarding climate change considerations, KPMG’s report found that 42 percent of Saudi-based CEOs intend to invest more than 10 percent of their revenues in becoming more sustainable.
