Majority of entrepreneurs think climate crisis will affect business in 2022, says PwC

Most Brazilian executives (63%) believe that climate change should impact the sale of products and services throughout 2022. This is what the 25th edition of the CEO Survey, carried out by the consulting and auditing firm PwC, shows.

In addition to the effect on commercialization, 45% of the business community thinks that the problem will affect the capital increase, while 39% fear interference from the climate in the development of products and services.

The survey interviewed more than 4,400 executives in 89 countries between October and November 2021. Altogether, 94% of the interviews were conducted online and 6% by letter, telephone or in person.

Concern about the effects of the climate crisis in the next 12 months is greater among Brazilian businessmen, according to the survey.

Globally, 54% expect impacts on sales, and 28% on capital increase. The exception is the development of products and services that, in the world, is feared by 48% of the executive directors.

However, the survey points to a possible contradiction. Despite the immediate concern, Brazilian leaders do not see climate change as a major threat to companies’ long-term growth.

Businesses say they fear shocks to the global economy and digital attacks more than climate or social issues.

Macroeconomic instability is considered the main threat to company results by 69%, while cyber risks are cited by half of respondents. Only 36% mention climate change, and 38%, social inequality.

For Mauricio Colombari, a partner at PwC Brazil, it is possible that executives are more concerned with immediate physical risks — such as droughts, floods and other weather phenomena —, which would help explain the apparent inconsistency between concern in the short and long term.

“We took a time when many physical risks are materializing. On the one hand, we have the water crisis, on the other hand there are companies interrupting operations due to excessive rainfall”, he says.

Companies with zero emissions targets are still the exception

A reflection of the low sense of urgency in relation to the effects of the climate in the long term can be seen by the low adherence of the market to Net Zero —commitment to zero carbon emissions.

According to the survey, 27% of Brazilian companies have assumed some Net Zero goal. Globally, the average is 22%.

Among Brazilian companies that have signed the commitment to be carbon neutral, 43% say that the objective is not aligned with scientific goals – which is also strange, according to Colombari.

“Saying that it has a Net Zero commitment, by definition, should be [algo] backed by scientific criteria,” he says.

He recalls that COP26, the UN Conference on climate change, was the edition with the greatest participation of the private sector and that, therefore, he hoped that the data would reflect a greater engagement with the agenda.

“I was very disappointed with the result of the survey, because when compared to the previous year the progress was very modest.”

“We realize that, despite so much talk about climate change and social inequality, ESG issues [ambiental, social e governança] continue behind others”, says Colombari.