Global challenges: necessary cooperation between business and governments
KPMG dives into some of the issues highlighted at Davos and why they will be relevant for the business sector. KPMG believes that companies will need to strengthen their relationship with governments to increase public-private collaboration on common challenges, such as "fair energy transition", digitalisation and attracting talent and knowledge.
Main take aways:
- Fostering public-private collaboration: Many governments are beginning to take a more active role in industrial and trade policy, reorienting their economies around national security concerns. For this reason, according to KPMG, the way businesses operate will need to change and building stronger relationships with governments will play a key role in developing ways to overcome common challenges.
- Fair energy transition: There is an increasing need to address the consequences of climate change, and to make the global energy system 100% renewable. However, according to KPMG, how we make the transition is becoming increasingly important. There is no point in moving to this energy model if along the way we negatively impact the people and communities whose livelihoods depend on the fossil fuel industry. it is essential that investors and energy companies are actively engaged in this debate
- Digital transformation: it will be increasingly important to address and respond to privacy and data protection concerns. In relation to the metaverse, KPMG says its main challenge will be to use it for real-life benefits.
- Talent attraction: Companies face a difficult balance between the need to continue to attract top talent and the need to control costs. In addition, issues such as hybrid work, wellbeing, training, career development and purpose are playing an increasingly important role in talent attraction and retention strategies.