09.04.2024 – 11:05
Mazars GmbH & Co. KG
Hamburg (ots)
- Over a third of respondents fear negative impacts if they report on ESG areas that need improvement.
- Almost two thirds believe that artificial intelligence will replace jobs in their company.
- More than half of companies have difficulties recruiting talented employees.
For German companies, renewing or adapting their sustainability strategy as well as technological transformation will be an absolute priority in the coming years. This is shown by the C-suite barometer from the international auditing and consulting company Mazars, for which around 800 C-level managers from over 30 countries worldwide were surveyed at the end of 2023.
The topic of sustainability is becoming increasingly important in companies. The proportion of companies in Germany with annual sales of over one million US dollars that produce a sustainability report has risen to 75 percent. In 2023, only 15 percent created such a report. Two thirds of these companies will publish an independent sustainability report. Only a third say they will create an integrated report for 2024 that combines financial and non-financial reporting.
36 percent of top German decision-makers fear negative consequences if they report on areas that need improvement. For many company managers worldwide (37 percent), data collection and quality represent the biggest challenge, while this only applies to 28 percent of respondents in Germany. However, a third of those surveyed in Germany find it challenging to evaluate what information the sustainability report should contain.
ESG expertise is missing
It is noticeable that respondents in Germany identify greater knowledge deficits in the area of ESG (environmental, social, governance) in their companies than company managers worldwide. 46 percent of C-level managers in Germany say they have too little expertise in the areas of climate and CO2 emissions (global: 41 percent), 42 percent in the area of responsible supply chains (global: 34 percent) and 44 percent in sustainability reporting (worldwide: 37 percent).
This is also why Dr. Christoph Regeler, spokesman for the management board of Mazars in Germany, with a growing need for consulting and auditing services in the area of sustainability: “Increasing requirements for sustainability reporting such as the Supply Chain Due Diligence Act and the Corporate Sustainability Reporting Directive are posing major problems for more and more companies. Very few companies We currently have the necessary mix of skills to create seamless, legally compliant sustainability reporting. This is proven by the results of the C-Suite Barometer. As an auditing and consulting company, we are required to provide our clients with the best possible support in their sustainable transformation to give them more security in view of the complex regulations. We have strengthened and aligned our sustainability team accordingly in recent months – especially in the areas of ESG Audit, Sustainability Reporting, Sustainable Supply Chains and Climate & ESG Data.”
Low ethical concerns about AI
The importance of new technologies as a key trend is also increasing among the top management levels in Germany. For 33 percent, IT transformation is the top strategic priority in the next three to five years. The planned expenditure for IT systems and digitalization will increase significantly. The proportion of investments in IT systems in Germany will grow from 47 (2023) to 67 percent (2024). Investments in the digitalization of internal processes will increase from 43 (2023) to 58 percent (2024).
The C-Suite Barometer also shows: 63 percent of German company managers and 49 percent worldwide assume that artificial intelligence (AI) will replace jobs in their company. Nine out of ten top decision makers in Germany say they use AI in their company, which is even higher than the global average (74 percent). German C-level executives also express fewer ethical concerns about AI than others worldwide: only 15 percent have “major” concerns compared to 39 percent globally. However, there is still a significant need for further regulation: the vast majority of company managers surveyed in Germany (69 percent) rate the importance of regulating generative AI as very high. Worldwide it is 48 percent.
“Technological change offers companies numerous advantages, from the optimization of internal procedures and processes to faster problem analyzes and lower resource consumption. The digitization of business processes and models as well as the implementation of new technologies are an investment in the competitiveness of companies and the German economy as a whole Economy. We at Mazars are also constantly working on the development and use of innovative tools and efficient AI applications,” emphasizes Dr. Christoph Richter.
Skilled labor shortages are a major concern
The right specialists are also needed for the digitalization of corporate processes. German business leaders face greater challenges in hiring talented employees than their counterparts worldwide. Significantly more than half of those surveyed in Germany (54 percent) reported difficulties in hiring suitable workers, compared to 44 percent of top management worldwide.
Recruiting the right candidates is particularly difficult for 44 percent of German and 39 percent of global managers. 42 percent of German and 37 percent of global company managers identify a general lack of talent as the biggest challenge.
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About the study
The C-suite barometer, Outlook 2024: Building Global Ambition, examines the views, challenges and strategic priorities of C-level executives at for-profit companies with annual revenues over $1 million worldwide. The independent opinion survey was carried out at the end of 2023 with around 800 decision-makers in over 30 countries and regions. Respondents came from Australia, Botswana, Brazil, Chile, China, Germany, Ivory Coast, France, Great Britain, Hong Kong, Ireland, Italy, Japan, Canada, Morocco, Mexico, Mozambique, the Netherlands, Nigeria, Austria, Poland, Qatar, Romania, Slovakia, South Africa, Spain, Singapore, Switzerland, the United Arab Emirates and the USA.
About Mazars
Mazars is an internationally integrated partnership specializing in the areas of auditing, tax and law¹ as well as accounting, financial advisory and consulting. We operate in over 100 countries and regions around the world and draw on the expertise of more than 50,000 professionals – more than 33,000 in the Mazars integrated partnership and more than 17,000 through the Mazars North America Alliance – to serve clients of all sizes in every phase of their development.
Mazars is represented in Germany with more than 160 partners and around 2,500 employees at twelve locations and, with an annual turnover of 283 million euros, is one of the leading multidisciplinary auditing and consulting companies.
¹If permitted by applicable state law.
Press contact:
Mazars GmbH & Co. KG
Kilian Becker
Marketing & Communication
Tel: 0170 376 6489
E-Mail: kilian.becker@mazars.de
Original content from: Mazars GmbH & Co. KG, transmitted by news aktuell
2024-04-09 10:03:51
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