McKinsey partner, Yuito Yamada, talks about the biggest issues being discussed at the World Economic Forum Annual Meeting, including how companies are thinking about sustainability.
McKinsey: What are some of the core issues being discussed at Davos this year?
Yuito Yamada: So, let me start off by talking about a few of the topics and issues that have been discussed in Davos. I think the acceleration of sustainability topics is one thing.
I was [in Davos] in January 2020. At that time, it was about whether or not sustainability is going to happen, and how we should move towards it. It was about: “Okay, what shall we do in order to accelerate this?”
Now, this time, it’s really about how to do it. And I’ve been in a number of discussions around how do we set up the organization? How do we set up the incentives? How do we get the organization to move? So, I think the conversation has dramatically shifted in that dimension.
Another topic I would mention is this reimagining of globalization. It’s interesting to see people talk about McKinsey’s MGI (McKinsey Global Institute) report on this aspect. Because some people are thinking: “Is globalization finished?” There are debates like that, but our stance is that it is much more nuanced. And no country can survive by itself, because we are actually in a historically highly connected world. So, these are some of the important topics that I see being discussed at Davos.
McKinsey: Was there anything that surprised you at Davos?
Yuito Yamada: I don’t think there’s [anything that] actually surprised [me]. But I would say, there’s an overly optimistic view, which was interesting. And what I mean by that is, number one: despite all the crises that have been happening, the industry production level of, let’s say a country, Germany, hasn’t actually dropped significantly in the past months.
But number two, also, as China opens up, as consumers go to different places around the world and tourism comes back with the Chinese consumers—there’s optimism about the economics coming up in 2023 as well. So, I was surprised by that tone of optimism.
McKinsey: Amid global volatility, what advice would you give to business leaders?
Yuito Yamada: I think one topic that we would think about and a discussion that we’ve been having here is that none of the issues we are facing right now—with the global pandemic that we had, the recession that might come on, global inflation, and, obviously, decarbonization and sustainability—can be solved by one country.
I would keep an eye on how, as a firm, we could also think about globalization and working together, collaborating with different clients. Not in one industry, but with different industries coming in together. And different country states coming together to support, solve these issues. That’s one lens that I recommend looking from.
Source: mckinsey
