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CEOs worldwide most concerned about environmental issues in 2019: Survey
“However, we found that CEOs in Indonesia were still most concerned over territorialism. Environmental risks were not a major concern among them,” noted Irwan.
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“However, we found that CEOs in Indonesia were still most concerned over territorialism. Environmental risks were not a major concern among them,” noted Irwan. (Shutterstock/Flamingo Images)
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EOs worldwide are most concerned about environment-related risks in 2019, as consumers’ growing environmental awareness could affect their businesses, according to the latest CEO outlook survey by business consultancy KPMG.
Susanto, head of the clients and market partners division at KPMG Indonesia, said in a press briefing in Jakarta on Thursday that the executives were on alert over changing consumer behavior and changing regulations related to the environment, which may negatively affect their business operations.
He cited as an example the #NoStrawMovement initiated in Indonesia by NGO Drivers Clean Action and KFC in May last year. The movement compelled other major fast food chains, such as Bakmi GM and McDonalds, to stop serving plastic straws but did not have a significant negative impact on their operations.
A more business-impacting movement is a campaign against crude palm oil in the European Union, which has prompted governments to phase out the use of palm oil-based biofuels. This has fueled trade tensions between the EU and major CPO-producing countries like Indonesia and Malaysia.
“Globally, 76 percent of CEOs feel the future of their companies depend on how well they navigate a low-carbon environment and clean economy,” said KPMG Indonesia CEO Irwan Djaja during the press briefing over the survey on Thursday.
KPMG’s survey, which questioned 1,310 CEOs worldwide (including 10 in Indonesia) of multinational companies with annual turnover above US$500 million, found the second and third-biggest concerns were, respectively, digital disruption and territorialism — a synonym for protectionism.
“However, we found that CEOs in Indonesia were still most concerned over territorialism. Environmental risks were not a major concern among them,” noted Irwan.
