Global investors forecast growth but demand more from business

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Investors around the world are cautiously optimistic about economic growth, however, they expect companies to do more to prove how they’ll create long-term value in a changing world.

PwC’s Global Investor Survey 2024 reveals that more than half of the 345 investors and analysts surveyed expect the global economy to grow in 2025. This marks a significant shift in sentiment compared to previous years, as inflation and macroeconomic volatility ease.

But disruption remains widespread, with investors viewing key risks – from technology and climate change to skills shortages and regulation – as equally pressing. Investors want companies to be resilient, agile and transparent in how they respond.

Broad risk landscape demands reinvention

While confidence in the global economy is rising, investors are paying close attention to how businesses adapt to a complex risk environment.

More than 70% of investors say technological change is the number one force driving companies to reinvent how they create and deliver value.

Other pressures investors are considering include government regulation, shifting customer expectations, geopolitical instability and supply chain vulnerabilities.

Investors are looking to back companies that can innovate and evolve their business models to meet new demands.

Big expectations, greater scrutiny on AI

Artificial intelligence is firmly on the investment radar, and the sentiment is largely positive, according to the PwC survey.

Two-thirds of investors expect AI to improve productivity at the companies they invest in – and nearly as many also anticipate gains in profitability and revenue.

Nearly three-quarters (73%) of investors believe businesses should moderately or significantly increase their investment in deploying AI at scale.

But optimism is tempered by caution. Investors want to see evidence that AI is being used responsibly – with clear ROI, workforce impact strategies, and cybersecurity protections.

Commitment not enough on climate action

The survey found half of investors believe it is “very or extremely important” for companies to change how they create and deliver value in response to climate change.

They want to see real action from companies on addressing ESG, not just words. The survey found investors are more likely to support businesses that disclose transition plans, emissions strategies and climate-related expenditure in detail.

It’s expected by 71% of investors that ESG be integrated into corporate strategy, which is consistent with 2023 findings.

And, a third of investors agreed or strongly agreed that companies should make expenditures to address ESG/sustainability relevant to their business, even if it reduces short-term profitability, with a further 35% somewhat agreeing.

Reporting under pressure: trust hinges on assurance

Even as investor trust in management remains relatively strong, doubts about the credibility of corporate sustainability reporting persist. Nearly half of respondents believe ESG disclosures still contain unsupported claims.

Instead, they’re calling for verified, consistent and comparable data – with a growing preference for qualitative insights over quantitative figures.

Three in four investors say they place more trust in sustainability reports that have been independently assured.

How businesses can position themselves for investors

Investors are signalling that they want companies that are prepared for disruption, proactive in innovation and transparent about performance.

For businesses, this looks like:

• Rethinking business models to align with emerging risks and opportunities
• Investing in AI and workforce upskilling to unlock future value
• Embedding climate action into business strategy and operations
• Strengthening reporting and seek independent assurance to build trust

Businesses that lead with transparency, innovation and adaptability will be best placed to earn investor confidence.

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