ΕY: Digital transformation, new development channels and ESG are the main priorities of Greek CEOs

The CEOs of Greek companies are adapting their strategic investment program to address the impact of the COVID-19 pandemic, as well as the ongoing geopolitical and socio-economic challenges. In this environment, the main priorities are digital transformation, new development channels and ESG strategies. These are some of the findings of the recent global survey of EV, CEO Outlook 2022, which recorded, among other things, the views of Greek CEOs from 12 sectors of the economy.

Greek CEOs are adapting to a new socio-economic landscape

Top executives in Greece are trying to understand the new socio-economic landscape, which changed fundamentally after the pandemic, and to adapt to it. More than half (54%) of Greek CEOs surveyed by EY reported that the COVID-19 pandemic caused a short-term disruption in their industry, while a strong minority estimated that it caused fundamental changes for the better (16%). or worse (12%). Finally, 12% of respondents believe that the changes only accelerated the existing trends in their industry.

Nearly two-thirds (62%) of Greek CEOs say they adjust their strategic investments to manage the risks associated with geopolitical tensions. Among them, just over half (55%) report that growing business uncertainty has pushed them to delay or discontinue planned cross-border investments. However, while many acknowledge that the new, post-pandemic world also holds significant opportunities, 45% say they hedge risks by accelerating cross-border investment.

At the same time, as labor shortages intensify, and as consumer demand grows unexpectedly, creating significant turmoil in global supply chains, CEOs have taken steps to increase the operational resilience of their businesses and reduce logistics costs.

However, despite the growing global tensions being at the top of the agenda for Greek CEOs, they nevertheless consider as the most critical risks for their future growth strategy, the changing demographic trends and the unstable economic growth (19%) technology and data from competitors (16%), and uncertainty about the evolution of transformational technologies (15%).

Digital transformation and ESG strategies, “keys” to value creation

Many Greek CEOs recognize the need to invest today to secure future opportunities. As the pandemic accelerates digitalisation, top executives cite investment in digital transformation (22%) as well as existing business (18%) as key priorities for accelerating organic growth and value creation.

One in three Greek CEOs (36%) estimate that the effective use of data for the development of new products and services, will be a key tool for the development of his company in the next five years. In addition, with the rapid advances in technology (artificial intelligence, robotic process automation, IoT, etc.), one in four (24%) see technology and automation as strategic levers to improve profit margins. Automation, in particular, offers huge opportunities for CEOs who want to promote their business transformation and turn employees into higher value activities.

Investments in sustainability are also at the forefront, highlighting the relative importance that the majority of Greek CEOs attach to ESG issues, as a value catalyst in the coming years. They estimate that their strategy for sustainable development will provide them with a competitive advantage (22%), will contribute to the transformation of other companies and their customers (22%), while, for others, it is a response to pressure from the state, regulators and society (22%). However, while 75% of CEOs in Greece say their investors strongly support well-worded investment plans, 65% say they have resisted the transition strategy to sustainable development, citing costs and potential long-term returns. as key concerns for investors.

Greek CEOs adopt a conservative approach to mergers and acquisitions

Rapid combined changes in the business and geopolitical landscape are pushing Greek CEOs to take a more conservative stance on mergers and acquisitions, with only 41% (compared to 59% of CEOs worldwide) saying they will actively pursue the next 12 months. On the contrary, the executives in Greece appear satisfied with the reform of their portfolios through organic investments.

Among those considering mergers and acquisitions, key priorities are acquiring companies in related industries (27%) and boosting their ESG and sustainability performance (26%). At the same time, they expect an increase in competitive bids for their target assets, with a significant portion of this competition coming from private equity.

Commenting on her findings researchMr. Tasos IosifidisPartner and Chief Advisor of Corporate Strategy and Transactions of EV Greece, stated: “In this rapidly changing environment, the Greek CEOS, along with the survival and growth of their businesses, must ensure balance with an ever-expanding ecosystem of interest. Digital transformation, attracting and retaining talent, as well as focusing on ESG issues, will be key priorities.At the same time, and while a conservative approach may seem like a safe choice in today’s environment, bold portfolio investment transformations “could prove to be crucial for future development.”