Strategic Shifts in Global Corporate Capital Management

According to the "Corporate Capital Strategies in Changing Geopolitical Environment" report, drawing on insights from Standard Chartered's Global Capital Structure & Rating Advisory Survey, corporations are now looking beyond the obvious and are embarking on a journey to re-balance the role of capital in their business: from protective to generative and from defensive to productive.

Redefining the Role and Priorities of Risk Management

Risk management has seen a shift in corporate priorities with more companies adopting a balanced approach in managing market, financial and operational risks. In terms of financial risks, the survey found that FX risk management remains a top treasury priority for global corporations, at 56%, followed by interest rate risk, at 47%. At the same time, companies were seen to step up their efforts to build operational resiliency and diversify their supplier base (38% globally) and export markets (27%).

The Shift Towards Capital Productivity and Cash Efficiency

While the importance of maintaining and even strengthening liquidity positions is widely recognized, with nearly half (49%) of the surveyed corporates set to remain broadly neutral in terms of their liquidity profiles, the emphasis is on balancing liquidity needs with working capital efficiency. The survey found that 51% of global corporates would seek to balance the need for liquidity with cash productivity, and that a sizeable proportion would look to invest in working capital for growth.

Prioritizing Growth Opportunities for Value Creation

Despite the challenging macroeconomic and geopolitical environment, the surveyed corporates remained generally optimistic about the growth prospects for their respective businesses.

51% of respondents expected to be making capital expenditures from cash reserves to fund organic growth in the next 12 months, while 57% anticipated using more debt to finance growth. Notably, the respondents were also found to be willing to adjust their capital structure for growth, with 27% saying they would be willing to lower their credit ratings to fund specific capital investments, with a focus on carefully chosen opportunities.

Sustainability Trends Going Strong

40% of respondents said ESG ratings were material to their capital allocation decisions and viewed ESG rating providers' input as critical to achieving their ESG goals. 30% allocated capital to ESG in their 2025/26 budgets and were projecting increased spending on sustainability initiatives going forward, including in relation to green and energy transition investment programs.

The RMB's role in corporate treasuries and cash management is continuing to grow. Multinationals, in particular, are increasing their RMB funding and operations, with a significant proportion already reporting substantial levels of RMB exposure. On average, 23% of revenues, 25% of costs, and 14% of debt are denominated in RMB. Looking ahead, 76% of respondents stated that they would like to maintain or increase their use of the RMB for cash management purposes. Meanwhile, the majority of respondents still expect to carry more RMB liabilities than assets, and are therefore looking to manage their RMB debt exposure prudently.

Looking Ahead

Corporations are embracing a new era of capital management and are taking bold steps to transform their capital structures to adapt to the changing business environment, with a focus on three key themes: resilience, growth and efficiency.