5 must reads for your weekend

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

1. EV sales defy predictions

Car drivers are buying electric vehicles (EVs) at record pace not put off by rising EV costs or long lead times. Momentum is also building in the bus and truck segments, with commercial fleet operators seeing huge potential in electrification - especially as prices become increasingly competitive with diesel alternatives. Across the globe, EV sales doubled in 2021 and jumped 55% in 2022, accounting for 13% of all vehicle sales. This demand for EVs comes despite huge turmoil in supply chains, record prices for battery metals and ongoing COVID-19 pandemic disruptions in China. Economic headwinds, the cost-of-living crisis and rising energy costs have also done little to restrain the enthusiasm. But EV drivers will be going nowhere fast, unless utilities make it possible for them to plug in - rather than fill up. Serge Colle, EY Global Energy & Resources Industry Market Leader, shares six essentials for the eMobility transition. Without them, EV adoption could hit the curb. 

Six essentials for mainstream EV adoption 

2. Turning trash into treasure

Collect raw materials, manufacture them into a product, sell the finished good and discard it after a single use. This is a linear business model. But there’s a new kid on the block; the circular economy. The principle behind this sustainable production model is to keep raw materials and finished goods in circulation for as long as possible, to further extend product shelf life and avoid filling landfills with excess waste. A 2022 Ernst & Young LLP (EY) report validated that the circular economy is gaining traction - with 72% of the cross-industry executives surveyed stating they already have or intend to execute plans involving circular economy strategies. However, research also shows that many of these companies feel they are lacking the visibility and technology required to accurately measure their progress. One multinational plastics, chemical and refining company, is exploring how digital technologies can help fully trace and track circular content throughout its manufacturing process. 

How a digital ledger helped one plastics company champion circularity

3. Transforming life sciences

The life sciences industry has built up a lot of trust in recent years; the rapid development and mass deployment of COVID-19 vaccines highlighted to stakeholders what the industry can achieve. At the same time, new technological advances are creating the opportunity for more breakthroughs. One way is through artificial intelligence (AI) - and the impact could be huge. AI is enabled by complex algorithms, that are designed to make decisions and solve problems. In combination with machine learning (ML) and natural language processing - which make it possible for the algorithms to learn from experiences - AI and ML will help life sciences companies develop treatments faster and more efficiently in the future. This in turn could reduce the costs of health care, while making it more accessible to patients.  

How are AI and machine learning altering the life sciences industry?

4. India's ascent to megapower

India’s progress over the past decade is nothing short of impressive. From ranking the tenth largest economy ten years ago, to the fifth largest today, it has been the fastest-growing major economy for the third year in a row. This year, India is set to become the largest country in terms of population, enabling it to become the largest contributor to the global workforce for the next several decades. Last year, it celebrated its 75th anniversary of independence, with such milestones serving as a valuable opportunity to not only commemorate past achievements but also to envision a bright future for the country. In line with this, the Government of India has set an ambitious goal for the nation to achieve the status of a "developed" economy by the year 2047. This is a crucial decade for India to shape its own future, and even beyond, to chart a path for other developing countries. 

Realizing the potential of a $26 trillion economy

5. Keeping a level head

Almost all CEOs (97%) have altered their strategies in response to geopolitical challenges, according to the latest CEO Outlook Pulse. 41% have reconfigured their supply chains, 34% are exiting businesses in specific markets and 32% have halted a planned investment. Many executives might be wondering if they’re doing enough. Others may worry they’re overreacting and missing out on growth opportunities. Regardless, executives first need to assess their company’s exposure to political risk and then crucially, the ability to manage that risk. We identified four political risk profiles for public companies: passive mitigators, risk-ready companies, active managers and exposed entities. Understanding your profile will help you to avoid over, or under, reacting to geopolitical risks. So, which one does your organization fit into? 

Why a level head is needed to deal with geopolitical risk

If you do one thing: 

Be kind. Reach out to someone you haven’t spoken to in a while and check in with them.

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