The majority (85%) of Dutch businesses are experiencing the consequences of the changing relations between Europe and the United States. These are the findings of the KPMG GeoPulse survey conducted by KPMG Netherlands among directors and senior executives of public and private organizations and businesses in various sectors. In those organizations and enterprises, 97% expect their business operations to feel the impact of the increasing influence of geopolitics. Most of the respondents (73%) are already taking extra measures, for example with respect to cybersecurity.
Greater impact on business operations
The economic sanctions and uncertainties relating to geopolitical cooperation are stoking unrest. Nearly all the respondents (97%) expect such influences, including an increase in protectionist measures, to have a greater impact on their operations in the next twelve months. A majority (64%) recognizes regional-specific risks in Eastern Asia, Eastern Europe and the United States and expect that these will have consequences for their international investment plans. However, there is still a predominantly wait-and-see attitude with respect to moving activities back to the Netherlands or relocating them to Europe. 93% of the respondents say they are not yet planning to do so and are waiting to see how the situation unfolds.
Continued trust in sustainability policy
Many of the respondents (70%) continue to trust the ESG policy, despite geopolitical uncertainties in this field. Businesses still feel that long-term goals are strategically important, although some delay is expected due to possible legislative changes in the US and Europe. Slightly more than half (53%) do not predict any loss of competitiveness by retaining climate goals. This group sees long-term benefits and the ‘first movers’ advantage of a green economy, citing China as an example. There are also concerns regarding short-term damage due to the renewed American focus on fossil fuels and the high energy prices in the EU.
Rapid developments in AI
The directors and senior executives respond in various ways to AI, from skeptical to enthusiastic, and express their concerns about Europe potentially trailing behind countries like China and the US. Only a small majority (58%) expect society to be able to keep pace with the rapid developments in AI. In addition, businesses are focusing strongly on taking a range of measures to improve cybersecurity, from increased vigilance to investments in digital transformation, sensitive knowledge and system access.
Stephanie Hottenhuis, CEO of KPMG in the Netherlands: “Increasing protectionist measures and uncertainties about geopolitical alliances and objectives are evidence that it is no longer business as usual. The findings of this survey reveal that geopolitical shifts are impacting Dutch companies, and that directors and senior executives of big Dutch companies are aware of this and are actively adapting.”
About the survey
KPMG conducted a survey among sixty directors and senior executives of companies and organizations in the Netherlands. This survey will be repeated quarterly this year.
