Posts

Policymakers Must Offer Clarity to Secure Net-zero

Net-zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere. We reach net-zero when the amount we add is no more than the amount taken away.

Government must play a greater role in the global energy market, either through a direct stake or as a co-investor, to support the new emerging energy system, according to a new study by PwC.

The report, Inventing tomorrow’s energy system: The road ahead for molecules and electrons, finds that the growth in renewables, estimated to account for 90% of the global energy market by 2050, and scaling up of hydrogen, will lead to a greener but substantially more complex energy market.

Electrons produced by renewables are set to power factories, heat and cool buildings, fill up batteries that will capture power and become generators and, as electrification hits the transport sector, emerge as the major fuel for cars.

While hydrogen will link the electricity and gas markets, allowing for large-scale storage, powering of heavy-transport, and the massive decarbonisation of industrial power demand. Consequently, sectors such as Oil & Gas, Utilities, and Chemicals, which are currently sharply delineated, will begin to converge and form into integrated energy systems over the next decade.

This enormous shift in the global energy sector and the players within it, will require greater coordination and collaboration between government and the market to successfully work towards a greener future.

To meet global emissions targets, government and business must work together in new, and untested, ways to realise the full potential of renewables. Getting the energy transition right is not only critical from an environmental perspective, but also an economic one.

The report estimates that the cost of transforming the electricity networks in Europe alone will be at least USD$2 trillion over the next 30 years.

It also cites the International Renewable Energy Agency’s forecast that USD13 trillion is required to be spent on power transmission and distribution networks across the globe in the years to 2050.

PwC Appoints New Global Leader of Consumer Markets

A consumer market is a market when individuals purchase products or services for their own personal use, as opposed to buying it to sell themselves. Consumer markets consist primarily of products that people use as part of their everyday lives.

PwC has appointed Sabine Durand-Hayes as the Consumer Markets Global Leader. Sabine brings more than 25 years of experience assisting private equity and corporate clients with analysis and structuring of mergers, acquisitions and divestitures.

During her career with PwC, she has advised various multinational agri-food, fast-moving consumer goods, luxury and retail companies on strategic and operational issues, from portfolio management to carve out and integration.

In her new role, Sabine will lead the Global Consumer Markets Industries team, which advises a large network of clients from various industries, including retail, consumer, hospitality and leisure, as well as transport, logistics and packaging, on a range of key areas. In particular, she will focus on optimised omnichannel models; effective supply chain management and organisation, from strategy to execution – enabled by digital, data analytics and new ways of working, including environmental, social and corporate governance, risk and assurance, tax and legal aspects as part of the solution.

She will also continue her role as the Global Relationship Partner for one of the world’s largest global food retail companies.

“I’m thrilled to be taking on this new role in leading our Global Consumer Markets Industries practice,” says Sabine. “The ongoing transformation of the Consumer Markets industries in a context of fast-changing consumer preferences, and accelerated by the COVID-19 pandemic, serves as a reminder of how our PwC purpose – to build trust in society and to solve important problems – guides our work with clients and stakeholders.

By bringing our capabilities together, we have unique opportunities to connect with all players, from manufacturers and producers, all the way to distribution and consumers, on how to address common challenges. We can provide experience and solutions that make a real impact for our clients and their consumers.”

Sabine previously was Retail and Consumer Industries leader in France and more recently led Consumer Markets in Europe, the Middle East and Africa. She leads PwC’s Transactions Services Retail & Consumer teams in France.

She presently serves as a member of the Supervisory Board of PwC France & Maghreb since 2017, and led the Strategy commission from 2017 to 2020, providing first-hand experience of governance and control in a multinational business.

Sabine trained and worked in PwC United Kingdom and is a member of the Institute of Chartered Accountants of England and Wales.

She earned a Masters from ESC Montpellier Business School.

COVID-19 Pandemic Has Accelerated Digital Upskilling

Upskilling is a workplace trend that facilitates continuous learning by providing training programs and development opportunities that expand an employee’s abilities and minimise skill gaps. A new survey of 32500 workers in 19 countries paints a picture of a global workforce that sees the shift to remote working as just the tip of the iceberg.

Reflecting the fact the pandemic has accelerated a number of workforce trends, 60% are worried that automation is putting many jobs at risk; 48% believe “traditional employment won’t be around in the future” and 39% think it is likely that their job will be obsolete within 5 years.

However, this is not a counsel of despair, as 40% of workers say their digital skills have been improved through the prolonged period of lockdown, and claim they’ll continue to embrace training and skill development. 77% are “ready to learn new skills or completely re-train” and 74% see training as a matter of personal responsibility.

In addition, 49% of respondents are focused on building entrepreneurial skills with an interest in setting up their own business.

Half of workforce report missing opportunities due to prejudice

The survey also found that 50% of workers say they’ve faced discrimination at work which led to them missing out on career advancement or training. 13% report missing out on opportunities as a result of ethnicity and 14% of workers have experienced discrimination on the grounds of gender, with women twice as likely to report gender discrimination as men.

13% report discrimination on the basis of class, with post-graduates and others with higher qualifications more likely to report prejudice. Younger people are as likely as older people to report discrimination based on age.

On top of that, the survey found there are disparities in access to upskilling opportunities. While 46% of people with postgraduate degrees say their employer gives them many opportunities to improve their digital skills, just 28% of people with school-leaver qualifications say the same.

Industries like retail or transport, which are most at risk of disruption, score just 25% and 20% respectively; while banking scores 42%.

Younger people more focused on maximising income

Three-quarters of workers globally say they want to work for an organisation that will make a “positive contribution to society.” This feeling was especially acute in China, India, and South Africa.

However, economic insecurity is limiting people’s ability to pursue purpose driven careers, with younger people particularly affected. Overall, 54% of those polled said, if forced to choose, they would prefer a job that enabled them to “take every opportunity to maximise their income’ over a job that ‘makes a difference”.

Interestingly, those between 18 and 34 are more likely than other generations to prioritise income over purpose in their job with 57% prioritising “maximising their income” over “making a difference”, a margin of 14 points.

Those over 55 prioritise making a difference by a margin of 8 points, which rises to 22 points amongst workers over 65.

Employees want the option to work remotely moving forward

The survey concludes that remote working will persist post-lockdown. Of those who can work remotely, 72% of say they prefer a mixture of in-person and remote working, with only 9% stating they’d like to go back to their traditional work environment full-time.

This is particularly true of professionals, office workers, business owners and the self-employed, all of whom are able to perform their jobs remotely using technology. Home working need not be limited to professional jobs. 43% of manual workers and 45% of semi-skilled workers say there are many elements of their job that they are able to do remotely.

People’s attitudes to working from home also change by location, providing further evidence of how the pandemic has increased the global digital divide.

Workers in metropolitan areas are more likely to work in roles that could allow remote working than those who live in rural areas.

Workers torn on privacy and technology

44% of workers globally would agree to let their employer use technology to monitor their performance at work including sensors and wearable devices, with 31% against. However, many would not go as far as allowing their employers access to their personal data.

41% of respondents said that they were unwilling to give their employer access to their personal data including social media profiles, with only 35% willing.

PwC Appoints Jan Sijbrand and Troy Paredes

Jan Sijbrand and Troy Paredes will join the board of PwC, which is responsible for the governance of PwCIL and the PwC Network, oversight of PwC’s network leadership team, and approval of the standards by which each PwC firm must abide.

From 5 March 2021, Jan and Troy will work with the existing 18 board members who are made up of partners and principals from 13 PwC firms from across the world and as of June 24, 2021 they will formally join the new PwCIL board which is currently being elected.

Jan has enjoyed a long career in banking, including head of risk management for ABN Amro, Chief Risk Officer and member of the managing board of NIBC Bank, and member of the executive board and chairman for supervision of De Nederlandsche Bank.

In addition Jan was a member of the supervisory board of the European Central Bank from 2015 -2018 and a member of the board of supervisors of the European Banking Authority from 2011-2018. Jan brings a wealth of experience of financial services, risk management, oversight and supervision.

Jan also currently serves as deputy chairman of the supervisory board of PwC Netherlands.

Troy is the founder of Paredes Strategies LLC, a consulting firm. He served as an SEC commissioner in the United States from 2008 to 2013 – during the financial crisis and its aftermath.

During his time with the SEC, Troy played a key role in rulemakings and other regulatory matters concerning all aspects of securities regulation.

Troy brings to the PwCIL board a truly extensive breadth of experience, including governance, compliance, strategy and regulatory. Troy also currently serves as an external director on the oversight board of PwC United States.

PwC Appoints Ron Chopoorian as Global Health Leadership

PwC is a multinational professional services network of firms, operating as partnerships under the PwC brand. PwC ranks as the second-largest professional services network in the world.

PwC has appointed Ron Chopoorian as the Global Leader of its Health Industries practice. Ron has extensive client experience and deep industry knowledge across health industries, including payer, provider and pharmaceutical and life sciences.

He brings more than 24 years of experience assisting private equity and corporate clients with a broad range of mission critical strategic initiatives, including improving business and commercial strategy, mergers, acquisitions, and divestitures focused on improving shareholder value.

In his new role, Chopoorian will lead the Global Health Industries team, which advises a large network of clients in healthcare and pharmaceuticals, as well as policymakers on a range of key areas including advanced data analytics, integrated patient experience, digital transformation in healthcare, social determinants of health, precision medicine, assurance, tax and legal services, and strategy.

He will also continue his role as the Global Relationship Partner for one of the world’s largest multinational pharmaceutical companies.

Chopoorian previously was the New York Metro Deals Leader and has launched and served as the national leader of the PwC United States Divestiture Services practice. He also co-led the “Digitising Deals” initiative to enhance value creation and customer experience through the use and deployment of technology in the mergers and acquisition process.

During his career with PwC, he has advised various multinational pharmaceutical, biotechnology and medical device companies on a number of strategic and operational issues, from digital enablement and transformation to business and financial due diligence.

Chopoorian earned a Bachelor of Business Administration degree in accounting from Southern Methodist University and a Master of Business Administration from Manchester Business School. Ron is also a CPA and a member of both the AICPA and the New York State Society of CPAs.

Health Care Industry To Gain The Most From 5G

5G is the fifth-generation technology standard for broadband cellular networks, which cellular phone companies began deploying worldwide in 2019, and is the planned successor to the 4G networks which provide connectivity to most current mobile phones.

Productivity and efficiency gains enabled by 5G’s application will drive business, skills and service change worth US$1.3 trillion to global GDP by 2030.

In Powering Your Tomorrow, PricewaterhouseCoopers quantifies for the first time, the economic impact of new and existing uses of 5G in utilities, health and social care, consumer, media, and financial services across eight economies with advanced rollout: Australia, China, Germany, India, Japan, South Korea, USA and the UK.

More than a faster version of mobile connectivity on 4G, 5G’s speed, reliability, reduced energy usage and massive connectivity will be transformative for businesses and wider society, enabling ubiquitous access to super fast broadband.

Used in combination with investments in artificial intelligence and the internet of things, 5G can be used as a platform to enable business and society to realise the full benefits of emerging technology advances.

Economic gains are projected across all economies assessed in the study, as 5G offers the potential to rethink business models, skills, products and services, with the gains accelerating beginning in 2025 as 5G-enabled applications become more widespread

Based on the study, the USA, China and Japan will experience the largest uplift as a result of 5G technology applications, due to the size of their economies and strong modern industrial production sectors.

At a regional level, Europe, Middle East and Africa is expected to benefit the most from manufacturing applications of 5G, due to the size of the manufacturing sectors.

It demonstrates the potential for regional competitive advantage through approaches to the adoption and regulation of the technology.

Achieving Better and Faster Outcomes in Health Care

Over half the global economic impact will be driven by the transformation of health and social care experience for patients, providers and medical staff within the next ten years.

While the acceleration of telemedicine during the COVID-19 pandemic provided a glimpse of the future of healthcare, remote care is just one area in which 5G can enable both better health outcomes and cost savings.

5G’s applications include remote monitoring and consultations, real time in-hospital data sharing, improved doctor-patient communications and automation in hospitals to reduce health care costs.

Regional and Sector impacts

At a sector level, impacts vary for individual economies. The United States and Australia are projected to gain the most from financial services applications: India from smart utilities; China and Germany in manufacturing.

Other industries analysed in the study show the significant potential of new and existing applications over the next decade, driving changes in skills, jobs, consumer products and regulation.

Policy and Trust

The study highlights that the reach of 5G’s technology potential will require businesses and government to consider new approaches to regulatory and consumer engagement – focusing on how the technology is used.