Expert insights from Alan Tyrrell CDir, Senior Managing Director, Teneo Ireland.
Launched in December, Teneo’s annual Vision 2025: CEO and Investor Outlook survey gathered the insights of 300 global public company CEOs and 380 institutional investors. Their views on the challenges and opportunities ahead provide plenty of food for thought as the tectonic plates in global politics continue to shift.
Economy: Half-full or Half-empty?
The glass is definitely half-full, and there is plenty of opportunity. Despite political rhetoric, the results of Teneo’s Vision 2025 survey show that concerns about tariffs, geopolitical tensions and trade barriers are outweighed by a soaring confidence and expectation of economic growth.
- 77% of CEOs (up from 45% in 2024) and 86% of investors expect the global economy to improve in the first six months of 2025.
With strong optimism regarding access to capital, CEOs and investors are expecting significant investment, and over 80% of CEOs and investors anticipate a major acceleration of M&A.
There is good news specifically for Ireland as well. This market, along with Continental Europe, is seen as an attractive investment option by more than seven-in-10 global CEOs. This positive view on Ireland, while heart-warming, naturally needs to be nurtured. A strong focus on talent development, innovation, enabling business agility and infrastructure investments must be a top priority if we are to capitalise on the opportunities.
Innovation: AI or Die
Afraid of being left behind, preparations for either technological or supply chain disruption feature prominently in CEO thinking and AI, unsurprisingly, takes centre stage.
- Nearly all survey respondents (97% of CEOs and 98% of investors) plan to maintain or increase AI investments.
As already seen in January, these planned investments are quickly coming to pass. The AI payback window too is seen as short. Almost eight-in-10 (79%) of investors expect AI projects to deliver positive ROI within 12 months.
With such substantial investment flowing into AI, strategic leadership is critical at all levels. CEOs, obviously central in setting strategy and governance frameworks, rely heavily on CIOs and IT leaders to manage key aspects of AI implementation. But Boards also need to become more focused on the AI agenda. In response to the question of ‘who should be responsible for AI implementation’, 57% of investors noted this as a responsibility of Boards. Clearly the business case for Board members to invest in their AI knowledge so as to provide better governance is a no-brainer.
ESG: Fight or Flight?
With President Trump’s early action on DE&I and climate policy, coupled with tentative proposals to review CSRD and CSDDD, questions about the future of ESG abound.
For CEOs, the outlook is positive. More than six-in-10 CEOs remain committed to either balancing ESG (56%) or prioritising ESG (7%) programs with their core business plans. However, and in line with investor expectations, 91% of CEOs globally (up from 72% in 2024) have adjusted ESG initiatives in response to the politicisation of ESG. So, ESG will survive – but change is afoot.
When working with leadership teams on their social impact strategies, we are seeing this translate into more focus on the alignment between business purpose and social causes. With four-in-10 CEOs becoming more cautious about which ESG topics to engage with, and a similar percentage of CEOs (39%) saying a greater amount of time is invested in listening to employees and customers to determine which issues matter to them, we are also seeing an increase in demand for accountability and independent validation of potential social partners seeking corporate engagement and support.
Getting this purpose: cause alignment right is important to ensure the strategy not only delivers on its social impact objectives but also delivers differentiation from competitors, supports business goals and helps protect the business from suggestions of ‘chequebook charity’ or virtue signalling. Interestingly, the communication channel of choice for sustainability is also changing with an increased number of organisations using microsites to publish their ESG materials.
Futureproofing CEO Talent
While investors and current CEOs still see financial leadership in the C-suite (the CFO role) as the key stepping stone from C-suite to CEO, the pathway to the top slot is evolving. COOs and CIOs are increasingly seen as roles that can prepare leaders for taking overall accountability for company direction.
A trend we have seen in previous years, and which is here again in Teneo’s Vision 2025, is the need for the leaders of tomorrow to future-proof their skills. Current CEOs see data, digital and transformation skills as key for the next generation of CEOs. In contrast, investors are focused on a broader set of skills for those seeking the top spot. This includes the development of talents in environment, leadership, team, understanding, and long-term thinking.
Weathering the Storm
The recent local and international political storms, not to mention storm Éowyn, have been sizeable distractions in the first few weeks of the year. In the context of this turbulence, the results of Teneo’s annual Vision 2025: CEO and Investor Outlook survey are, we hope, a beacon in the turmoil and helpful for your strategy development and growth plans. To view the full report, visit: Teneo Vision 2025 | CEO and Investor Outlook Survey.