A new era for Europe: investment attractiveness, regenerative agriculture, advanced manufacturing, AI and sustainability for boards
Andrew Hobbs
Partner | EMEIA Public Policy Leader | EMEIA Center for Board Matters Leader | EY
Welcome to the sixth edition of EY Public Policy Pulse — a quarterly newsletter curated by the EMEIA Public Policy team — in which we look at critical European policy themes that are shaping the landscape for 安永 and its clients. From sustainability and digital transformation to corporate governance, reporting, and geopolitics, we cover a spectrum of topics designed to inform and inspire.
Our goal is to spark meaningful discussions and promote a rich exchange of ideas. We invite you to join these conversations as we strive to contribute positively to the development of solid public policy. Please get in touch with us to share your thoughts and perspectives.?We look forward to hearing from you!
Read previous editions.
???? Counting down to your summer escape? Already on the beach with cocktail in hand? Either way, this edition has your summer reading covered. Dive in & enjoy!
Caught in the act: here's our team savouring the finer things in life at Concept Chocolate at the end of our Team Day — chocolate, wine, and plenty of laughs! ?????? (we did work on our FY25 strategy too by the way ??)
Spotlight??
EY Annual Summer Reception 2024: Amid global competition for investment, what more can Europe do?
Last month, the EY EU Public Policy Hub in Brussels hosted its Annual Summer Reception in our “indoor garden” at Belliard 40 — thanks to the famously sunny Belgian weather! ???
The reception marked the launch of the 23rd edition of the EY Europe Attractiveness Survey, which revealed a 4% decline in foreign direct investment (FDI) in 2023. This is the first annual downturn since 2020, caused by a combination of slow economic growth, spiralling inflation, soaring energy prices and a febrile geopolitical environment.
To help address these concerns and to enhance Europe's attractiveness to foreign investors, our own Marc Lhermitte , co-author of the survey, outlined 9 critical focus areas for policymakers.
For all the data enthusiasts out there, here are some golden nuggets:
?? We also asked investors what risks they see for Europe's attractiveness over the next three years:
?? Missed our event? No worries! Drop us a note at [email protected]. We’ll make sure you're on the invite list for the next one in June 2025!
For more information, please contact Ambrose Murray and Elsa Venturini .
Bridging Brussels to global boardrooms: insights on corporate governance and CS3D readiness
If you joined us for the European Corporate Governance Conference 2024 in Brussels earlier this year, you experienced its success first-hand. For those who missed out, we’ve capture the discussions into a concise report. Get the recap below! ??
? main takeaways from the report:
? Shifting to a more sustainable business model can enable European companies to build trust with their customers and gain competitive advantage.
? Companies should continually evolve their risk management practices to respond to the threats posed by today’s uncertain and volatile business environment.
? Value chain due diligence is a work in progress, while CSRD is a learning curve for audit committees as they oversee their company's sustainability reporting.
?? One of the hottest topics of the conference was (drumroll, please ??) the Corporate Sustainability Due Diligence Directive (CS3D). Now published in the Official Journal of the EU and set to enter into force before the end of the month, the Directive aims to anchor human rights and environmental considerations into companies’ operations and corporate governance.
If your company meets any of the following criteria, it’s time to adapt:
When will it start to apply? What are the key obligations? How can companies prepare today? These are just a few of the questions we address in our comprehensive guide on what the CS3D means for your business ??
?? Imagine an ecosystem where high-quality sustainability information becomes the antidote to greenwashing. We’re hosting a stimulating breakfast discussion on this topic with IFAC at the International Corporate Governance Network (ICGN) 2024 Annual Conference in London this week commencing 15 July. We'll do a debried in our next edition, so keep an eye out!
?? But we know you're always hungry for insight. How can boards turn sustainability from a wish into a winning reality? We addressed this question on a recent webinar which was co-hosted by EY and 欧洲工商管理学院 (INSEAD) Corporate Governance Centre.
?? ?? Watch the recording below and access the slides here.
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For more information, please contact Elsa Venturini and Andrew Hobbs .
Navigating a new era: regenerative agriculture and food security in Europe
With a growing global population, food demand is projected to grow by up to 56% by 2050. However, there is recognition that future food systems need to be nature-positive and sustainable. These challenges coincide with a critical moment in Europe, as the EU has recently adopted the highly debated Nature Restoration Law, setting legally binding targets to restore 20% of the EU's land and sea ecosystems by 2030 and all ecosystems by 2050.
??? As the conversation around sustainable food systems and food security evolves, there is growing awareness of the need for action from all parts of the system – from business, investors, policymakers, growers and producers ??????.
Policy measures are crucial to support nature-friendly farming practices that enhance sustainability and public health. Businesses and financial services must also play a pivotal role in developing innovative business models and effectively communicating messages to consumers.
?? Dive into the key issues and future prospects for European food systems from the London Climate Action Week. Click the ?? below for a quick recap! ??
?? Accelerating investment in sustainable food systems was also one of the main themes covered by a recent panel on ‘Innovation in Regenerative Agriculture’, hosted by F&A Next in Amsterdam and moderated by our own Charlotte Weston , and featuring an impressive line-up of speakers: Richard Zaltzman , Vanessa Maire , Philippe Birker and John Cherry.
The discussion particularly emphasized the ‘3Cs’ that are crucial for driving the adoption of regenerative agriculture in Europe: Community, Collaboration and Consumers, with a presentation on the EIT - European Institute of Innovation and Technology ’s Regenerative Innovation Portfolio
For more information, please contact Charlotte Weston .
5 global trends impacting Europe’s advanced manufacturing: challenges & opportunities
In April, the European Commission hosted the Advanced Manufacturing Industry Conference that brought together policymakers, corporate leaders, academics, and institutional representatives to discuss specific challenges facing advanced manufacturing in Europe.
Bart Deckers , 安永 Belgium Partner for Strategy and Advanced Manufacturing, delivered an impactful keynote speech at #AMEU24 where he outlined 5 key global trends that are reshaping the trajectory of the advanced manufacturing industry in Europe and beyond:
?? Interested in the details? Take a look at this one-pager ??
??? “98% of CEOs indicate that they are making alterations to their strategic investment plans in response to geopolitical challenges” said Bart, quoting our recent EY CEO Outlook Pulse.
The conference also highlighted the role of transformative technologies such as AI in accelerating manufacturing growth. Despite this potential, only 17% of businesses are expected to use AI by 2030, according to the European Commission's 2nd State of the EU Digital Decade report.
If there's one AI report you need to read, this is it ????
Based on a survey of nearly 5,000 managers and employees across 9 European countries, the first edition of the EY European AI Barometer offers compelling insights on the impact of AI in Europe ??:
???? While nearly three quarters of employees in Europe have practical experience with AI, the majority (38%) uses it in their personal lives rather than at work (12%). The share of AI early-adopters is highest in Spain ?? (84%), followed by Switzerland (82%) and Italy (77%).
?? More than two out of three employees in Europe fear job losses due to AI, with concerns lowest in Switzerland at 57% and highest in Portugal at 80%.
???? 80% of employees in Europe feel inadequately trained to work with AI applications, with most preferring live training and workshops (43%), followed by online courses (38%).
?? High optimism on AI development across sectors: Financial Services and TMT (82%), Energy (80%), Advanced Manufacturing and Mobility (77%), Agriculture (73%), Insurance (72%).
For more information, please contact Bart Deckers and Ivan Mannino .
We would love to hear your thoughts on any of the topics above, so please feel free to share this newsletter and leave your comments below ??
The views reflected in this article are those of the author and do not necessarily reflect the views of the global EY organization or its member firms.
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice.?