5 must reads for your weekend

We keep an ear to the ground for the interesting stats, insights and discussion points you need to feel in the know. 

 1. Energy worries drive UK air fryer sales 

"Many households are preparing for higher energy costs this winter, with blankets, warm clothing, and energy-efficient appliances, such as air dryers and air fryers, all selling well," says Helen Dickinson, chief executive of the British Retail Consortium (BRC). The UK is facing the most challenging economic circumstances since the 1970s. According to the latest EY ITEM Club forecast, the UK economy is expected to be in recession until summer 2023. Why? Febrile financial markets, the slump in the pound and the prospect of interest rates rising faster than expected, have added to the already considerable challenges facing the economy from high energy prices and inflation. We review the forecast and explore the outlook for the UK’s economic recovery, amidst financial market turmoil. 

How financial market turmoil is impacting the UK economy 

 2. How to lead in the metaverse  

The metaverse is rewriting the rules of the consumer economy, and it’s evolving at a remarkable pace.  Unsurprisingly, both Gen Z and Alpha are already spending increasing amounts of time engaging in the metaverse. As they mature and their purchasing power grows, they'll be spending even more time there, creating a golden opportunity for companies globally to connect with consumers in novel ways. Time spent in the metaverse will translate into a significant share of wallet. Our latest EY Future Consumer Index reveals 10% of consumers are already engaging with the metaverse through other means, such as buying virtual products or experimenting with virtual reality (VR). Acting now can position retailers, brands and other businesses to lead the change, instead of reacting to it. But how? 

Meet customers in the metaverse to unlock lasting value 

3. In crisis but in control 

How has living through a pandemic changed the way consumers respond to crisis? Firstly, their values have changed, and they’re determined to live by them. They care more about doing their part for the environment and less about buying things they don't need. But consumers are now finding it hard to square their need to live affordably with their desire to live more sustainably, especially as they feel sustainable goods are too expensive. According to the recent EY Consumer Index, many say they are making more of an effort to reduce waste (87%) and buy secondhand products (36%.) This highlights how consumers are taking control by optimizing for both economic and environmental benefits. But with 62% expecting their living costs to increase over the next six months, how will consumers strike the balance? 

Future Consumer Index: In crisis, but in control 

 4. Has war increased cybersecurity threats? 

Perhaps. But in reality, the cyber threat landscape was becoming complex long before the Russia-Ukraine conflict, particularly for utility companies. As well as the digital transformation being rapidly embraced by all industries in recent years, energy companies have also had to transition to renewable energy - and adapt to a rise of distributed energy resources. Utilities have therefore had to adopt completely different, digitally enabled ways of working; smart meters, remote operating centers and autonomous trucks, to name a few. While these offer huge possibilities for productivity, efficiency, and safety improvements, they also significantly increase the potential surface area for cyber attacks. Proving this point; ransomware attacks have risen 150% in the past year, according to the World Economic Forum, and are focusing the attention of government and industry alike. Clinton Firth, Partner and Global Cybersecurity Energy Industry leader at EY, tells us the full story. 

 Three reasons why cybersecurity in energy is more complex than ever 

 5. Getting biodiversity right 

One in five companies could face significant operational risks as a result of collapsing ecosystems. This can happen if a business directly depends on nature (i.e., for fresh water, pollination or productive soils) as a part of its business model. It can also happen if business activities are either directly or indirectly negatively impacting nature, which in turn can impact the business through reputational damage, legal action or financial losses. As the world transitions to a low-carbon economy, companies could be increasingly expected to demonstrate not just their decarbonization strategies, but also how they are reducing negative impacts on (and ideally enhancing) biodiversity. So how can companies get started? 

Why biodiversity may be more important to your business than you realize 

If you do one thing:  

Be kind to yourself. Your future self will thank you for it.