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- A transformational year for British business
A transformational year for British business
Key takeaways from the CBI Virtual Summer Reception.
Businesses are having to cope with transformations at an unprecedented speed on multiple fronts. And though many have adapted impressively, more can still be done to capture the opportunities of creating a greener and more inclusive society that a post-pandemic working world presents.
That was the focus of the discussion at this CBI Virtual Summer Reception, led by the Mayor of London, Sadiq Khan, and CBI Director-General, Dame Carolyn Fairbairn. The Investec-sponsored online event on 16 July saw over 100 senior business leaders participate in a discussion that covered topics such as digital inclusion, the green recovery and workforce upskilling.
The event was introduced by Head of Investec Wealth and Investment, Ciaran Whelan, who set the tone for the discussion: “British businesses have endured huge stress during the last four months, but have been stoic in their response. I know with the right partnerships, set-up and forward-thinking, we will emerge out of this crisis a stronger London and country.”
Business resilience in the face of a pandemic
Carolyn Fairbairn said businesses had adapted incredibly quickly in the wake of a devastating pandemic and that they hold a pivotal role in the UK’s economic recovery. For example, companies have adopted technology to enable their workforces to work from home and this remarkable adaptability should be celebrated.
While Carolyn also highlighted the swift and effective response of physical retailers in implementing new restrictions, she warned they currently face significant risks: “Confidence is critical right now. This cautious reopening is a moment of maximum jeopardy because they are opening but don’t know if their customers are going to come back.”
The Mayor echoed Carolyn’s comments that consumer and public confidence is vital, and said that successful implementation of new restrictions aimed at preventing a further a resurgence of the coronavirus should help that.
Digital inclusion
As well as dealing with new restrictions, another common challenge that businesses have had to cope with during the lockdown is technology. Technology has proved to be critical, not only for business performance but for keeping firms connected with their staff and the public. While the quick adaptation to new technology has been successful overall, the reliance on technology has helped expose digital fault lines in society that have left some excluded.
Levelling the technological playing field should be a key focus of businesses as it is one of the key pillars needed for the economic recovery.
“It’s an issue that I know business leaders and educators care passionately about and one that has been deepened by this crisis”, said Carolyn. “It’s by increasing opportunities and chances to re-skill and re-train that businesses can benefit from a wider talent pool. So, in a world where our lives have been transformed by those extraordinary digital conversations, we know there is one thing that can create opportunity like no other: that really is access to technology.”
The Mayor agreed: “Skills are a really important point. There is an opportunity for us to re-skill and skill people to make sure jobs are future proof. There is, unfortunately, going to be mass unemployment across London and this is where digital inclusion becomes very important. We know some jobs can’t be done at home – the skills agenda is an opportunity to address the inequality. We do need to skill up people quickly, get them back into work.”
Indeed, while the economy has a way to go until it is back on its feet, Investec Chief Economist Philip Shaw believes green shoots are taking root.
“It is still far from business as normal, but things are moving forward”, he said. “There are still parts of the economy that are constrained with social distancing and other measures, but we’re starting to get a sense of how business activity is adjusting as the restrictions are eased. Some of the non-traditional economic metrics that give us a timelier view of what’s going on, such as electricity consumption and transportation volumes, clearly point to activity returning.”
The green recovery
The recovery may also create an opportunity for businesses to address other environmental, social and governance (ESG) issues. As ESG continues to march up the list of priorities for businesses, it’s featuring more and more in the discussions about what kind of world we want to live in after the coronavirus pandemic has faded. “Now is the time to aim for a green recovery”, the Mayor and Carolyn said.
The opportunity of net-zero carbon emissions is real, and companies are playing an integral role. “What is pleasing to see through discussions with CBI members is the amount of businesses making a pledge to be net-zero by 2050,” Carolyn said. “This has got a whole new momentum. The other thing about sustainability and a green recovery is that it will create jobs and we need to get the skills in place to deliver that.”
This year has transformed how many companies do business. Many have had to adapt quickly and show resilience in the face of the biggest crisis for a generation. Carolyn and the Mayor agreed that resolve would act as a springboard back to prosperity. But more is possible. The current recovery presents businesses with the chance to not just re-build themselves, but to re-build the world they work in for the better.
All quotes were taken from the CBI's Summer Reception webinar on 16 July 2020, which was sponsored by Investec.
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