New York, 6 March 2020 – FCLTGlobal, the non-profit organization that develops research and tools that encourage long-term investing, hosted its biennial Focusing Capital on the Long Term Summit (FCLT Summit) on 5 March in New York. Hosted by Bloomberg, the event gathered more than 130 global business leaders to discuss the issues facing capital markets.
FCLT Summit convened leading corporations, asset managers, and institutional investors for a series of working sessions aimed at critical topics surrounding the long-term growth of global capital markets, including:
“FCLTGlobal’s mission is to make long-term decision-making the norm for companies and institutional investors worldwide, and broad adoption will only come when we lead by example. Our Summit participants are all well positioned to make that kind of change. By adopting the practical methods discussed today, which are focused on applying a long-term lens to projects and investments, we’ll be closer to achieving our goals,” said Mark Machin, FCLTGlobal Board Chair and President and CEO of CPP Investments.
Participants found consensus around several next steps for companies and investors, including a need for long-term oriented metrics for both companies and investors, an increased focus on corporate engagement with stakeholders – especially in an era of increased activism – and the evolution of the role of the corporate board. Those in attendance participated in an opinion poll to begin the day conducted by Harvard Business School professor George Serafeim. When asked “Which is the most effective lever to focus business on long-term value creation?”, 37% responded with “metrics that can communicate long-term value creation”; 35% responded “changing executive compensation incentives”.
“This event was the third Focusing Capital on the Long Term Summit. The first one recognized the impact of short-term thinking. Our 2018 Summit centered on exploring practical ways to improve long-term value creation. This year, our focus is on putting in place those practical actions that drive change,” said Sarah Keohane Williamson, FCLTGlobal’s CEO. “Our thinking in these areas has evolved significantly and, while there is still more work to do, we’re now able to move towards real implementation of these long-term ideas.”
In addition to interactive working sessions, the day included a CEO panel on sustainable capitalism, featuring Jim Fitterling (Dow), Adena Friedman (Nasdaq), Mark Machin, Paul Polman (IMAGINE, former CEO of Unilever), and Mary Schapiro (Bloomberg). The day concluded with a plenary session on investment in China, featuring Kewsong Lee (the Carlyle Group), Kevin Sneader (McKinsey & Company), Lei Zhang (Hillhouse Capital Group), and Nicolas Aguzin (J.P. Morgan).
A forthcoming report will feature a summary of the day’s discussion as well as a list of participants and speakers. Further information can be found at www.fcltglobal.org/summit.
About FCLTGlobal
FCLTGlobal is a non-profit organization that develops research and tools that encourage long-term investing. Our Membership is comprised of global asset owners, asset managers, and companies that play a leading role in rebalancing capital markets for sustainable growth. Please visit www.fcltglobal.org for more information.
# # #
Video
28 February 2018 - FCLTGlobal convened more than 150 Members and select business leaders to address the problem of short-term behaviors in capital markets. The 2018 Summit was a highly productive day devoted to discussing practical actions to encourage long-term business and investment decisions.
Article
12 March 2018 - On 28 February, the 2018 Focusing Capital on the Long Term Summit convened more than 150 members and select business leaders in a closed-door event to address the problem of short-term behaviors in capital markets.
Report
29 March 2018 - We very much appreciate the time and energy of all those who made this a highly productive day devoted to discussing practical actions to encourage long-term business and investment decisions. We were encouraged that leaders from five continents gathered to engage in this important work, and we are particularly grateful to our 42 Founder and Member organizations, our board of directors, and our strategic advisors who all played a role in making this important event a success. While it is impossible to capture all the energy...