They are particularly focused on the uncertainties surrounding a potential economic soft landing
A new report from KPMG International revealed that while Canadian business leaders are confident in their long-term growth, they are increasingly feeling the pressure to meet environmental, social, and governance (ESG) commitments and boost productivity.
The findings come from KPMG’s 2024 CEO Outlook, which surveyed CEOs from some of Canada’s largest companies. The survey found that 76 percent of Canadian CEOs are confident in their organization’s growth prospects over the next three years, and 83 percent are optimistic about the Canadian economy. However, 76 percent also report feeling increased pressure to ensure their business thrives long-term.
According to Benjie Thomas, CEO and senior partner at KPMG in Canada, this pressure is driven by the need for businesses to optimize operations, adopt new technologies, and remain resilient in the face of growing economic challenges. “CEOs are aggressively looking for ways to improve their company’s productivity, embrace generative AI, and become more cyber-proof, trade-proof, and inflation-proof,” Thomas said.
Canadian CEOs identified operational, cybersecurity, and environmental risks as their top concerns. While global CEOs expressed similar concerns, Canadian business leaders are particularly focused on the uncertainties surrounding a potential economic soft landing.
In addition to economic challenges, ESG remains a key operational priority. Half of Canadian CEOs stated that they are prepared for the scrutiny of implementing ESG strategies, a higher percentage than global counterparts. For small and medium-sized businesses (SMBs), implementing generative AI ranked as the top priority, as many now focus on catching up with larger organizations that have already made significant investments in AI technologies.
Tim Prince, Canadian managing partner at KPMG, emphasized that leaders are concentrating on enhancing productivity while preparing for future workforce needs, saying, “Canadian businesses are aware they must continuously improve their operations and upskill their workforce to compete globally.”
The survey also highlighted the ongoing challenge of talent retention. CEOs are increasingly pushing for a return to the office, with 83 percent of Canadian CEOs expecting employees to return full-time within the next three years. In contrast, SMB leaders are less optimistic, with only 20 percent anticipating a full return to the office, acknowledging that flexibility remains essential for attracting diverse talent.
The KPMG CEO Outlook and accompanying SMB survey provide insights into the strategies and concerns shaping the future of Canadian businesses.
