November 2024: 3 key reports on leveraging sectoral strategies for success

Welcome to KPMG Insights, a monthly newsletter capturing business trends and insights you might have missed this month.

Today’s multidisciplinary world requires leveraging diverse perspectives to solve the unique challenges of each industry. It is essential for businesses to adapt and innovate across sectors – as seen at the recent COP29 summit, where KPMG leaders raised pivotal themes intersecting with the core topic of sustainability, such as climate action and sustainable finance.

In this issue of KPMG Insights, we delve into findings from KPMG's CEO Outlook — exploring sector-specific trends in banking, energy, as well as infrastructure and transport. We also examine the transformative role of artificial intelligence (AI) in the insurance industry and the strategic importance of tax planning in this emergent ESG era.

2024 CEO Outlook: Sector-specific insights

KPMG’s CEO Outlook provides a deep analysis of the current business environment, highlighting key trends, opportunities and challenges across various sectors. Here are some key findings from this year’s report:

1. 81% of banking CEOs see cybercrime and security issues as the biggest threats to organisation growth in the next three years.
2. More than half of banking CEOs expect a significant return rate on their ESG investments within 5 years.
3. 68% of infrastructure and transport CEOs cite gen AI as their top investment priority, with their key concerns being bias and data protection.
4. 93% of energy CEOs are in favour of an in-office work model and are more likely to reward employees who are physically present.
5. More than a third of energy CEOs cite the complexity of supply chain decarbonisation as a key barrier.

Read the 2024 CEO Outlook in full here.

The AI advantage in insurance

AI is revolutionising the insurance industry, offering unprecedented opportunities for innovation and efficiency such as enhancing underwriting processes and streamlining claims management. By harnessing machine learning algorithms, insurers can analyse vast amounts of data to assess risk more accurately and tailor products to individual customer needs.

Moreover, AI-driven chatbots and virtual assistants are transforming customer interactions, providing instant support and personalised recommendations. This ?enhances customer satisfaction and reduces operational costs, but ethical considerations and transparency concerns must also be addressed to maintain trust and compliance standards.

See how you can get ahead in the insurance sector with AI. Read more about “Advancing AI Across Insurance”.

ESG-driven tax strategies

As company boards recognise the growing importance of ESG, developing a robust tax strategy is the next critical area in developing corporate responsibility and value creation. Companies are increasingly recognising the need to align their tax practices with broader ESG goals, focusing on transparency, fairness, and long-term sustainability. This involves integrating ESG considerations into tax planning, assessing risks and opportunities, and engaging with stakeholders on tax-related matters.

By adopting a proactive and transparent approach to tax, businesses can enhance their reputation, attract investors, and contribute to a sustainable future. Leveraging data and technology for robust tax governance is essential to navigate the complexities of global tax regulations and stakeholder expectations, driving a competitive edge.

Learn more in our “Elevating Tax Strategy in the ESG Era: A Boardroom Imperative” report here.

As we navigate the complexities of the modern business landscape, it is imperative for organisations to act on the unique challenges that arise from each industry. By understanding sector-specific trends, harnessing the power of AI with due diligence, and aligning tax strategies with ESG goals, businesses can curate their business approach and position themselves for success in an ever-evolving world.