Although confidence levels are still slightly down from six months ago, the latest edition of Deloitte’s biannual CFO Sentiment survey, nearly 25 per cent of chief financial officers are still feeling highly optimistic as they look to emerge from the COVID-related challenges of the last two years.
The survey also found that this confidence was accompanied by a high rate of caution, with 95 per cent of respondents saying their uncertainty levels were higher than normal – the highest level since the survey began in 2009.
Part of this uncertainty surrounds speculation around interest rate rises, with 74 per cent expecting a rise this year, and concern over retaining and securing key talent, with 93 per cent saying this is one of the major issues facing their business over the next 12 months.
Deloitte partner and CFO Program leader Stephen Gustafson said the fact that nearly 25 per cent of CFOs are highly optimistic and 58 per cent are optimistic, is a positive result when the global economic downturn of 2020 caused by COVID hit CFO optimism hard.
Mr Gustafson said concern over securing and retaining talent has risen over the past six months and has become one of the major issues facing businesses of all sizes.
“Another significant risk assessment is of an economic slowdown for China, perhaps not surprising given the state of Australia-China relations, and uncertainty levels being at an all-time high,” he said.
Environment, social and governance issues have also moved higher up the list of concerns with the survey revealing that CFOs recognise that investors, customers and their people want action on ESG, including in response to climate change.
Seventy per cent said their ESG activities are in the early or advanced stages of progress, but some respondents said they are also not yet confident in their abilities to drive ESG action in their organisations.
A lack of resources and having the relevant skills and knowledge available are seen as barriers to driving change, and 65 per cent are having difficulty in measuring the return on investment of ESG action.
