Boston, MA, 30 September 2024 – FCLTGlobal, a not-for-profit organization that advocates for a longer-term focus in business and investment decision-making, today announced the launch of the FCLT Gold Standard, a set of criteria that represents the key attributes of long-term-oriented companies and investment organizations.
In an era marked by rapid economic shifts, the need for long-term decision-making has never been more evident. Data has shown that long-term-oriented investors deliver superior performance, and long-term-oriented companies outperform in terms of revenue, earnings, and job creation.1 Despite this mounting evidence, short-term pressures are hard to avoid, and companies and investors often trade long-term growth for near-term wins.
FCLTGlobal has developed the FCLT Gold Standard to answer the question, “What does it mean to be long-term?” The project is comprised of three sets of criteria defining recommended long-term practices for companies, asset owners, and asset managers; each focuses on four strategic areas required for strong long-term performance:
“In launching the FCLT Gold Standard, we are setting a new benchmark for excellence in long-term investment and business practices,” said John Graham, Chair of FCLTGlobal and President and CEO of CPP Investments. “By adopting these principles, companies and investors alike can better navigate short-term pressures while building enduring value for future generations.”
FCLTGlobal developed the FCLT Gold Standard in consultation with its 70+ member organizations headquartered in more than a dozen countries worldwide, as well as numerous other NGOs and industry groups. The standard is based on FCLTGlobal’s library of work, third-party research, and proven long-term strategies of leading companies and institutional investors.
The FCLT Gold Standard is designed to become a shared frame of reference for investors and companies to improve long-term decision-making rather than a compliance or disclosure exercise. The project will be reviewed periodically—as new practices are developed and further research is conducted—so that it best reflects the latest long-term practices and recommendations for corporates and investors.
“Through this standard, we hope to foster responsible, forward-thinking, and sustainable approaches to long-term value creation across the global investment value chain,” said Sarah Williamson, FCLTGlobal’s chief executive officer. “This project underscores our commitment to promoting long-term thinking in an increasingly volatile economic landscape. Our goal is for it to be a useful and practical resource for organizations looking to keep their focus on the future.”
FCLTGlobal’s membership is comprised of best-in-class asset owners, asset managers, corporations, and professional services firms from around the world. Several FCLTGlobal member organizations attested to the importance of the FCLT Gold Standard:
To learn more about the FCLT Gold Standard, visit www.fcltglobal.org/goldstandard.
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About FCLTGlobal
FCLTGlobal’s mission is to focus capital on the long term to support a sustainable and prosperous economy. We are a non-profit organization whose members are leading companies and investors worldwide that develops actionable research and tools to drive long-term value creation for savers and communities. Please visit www.fcltglobal.org to learn more.
Media Contact
Ross Parker, [email protected], +1 508 667 5451
McKinsey Global Institute. Measuring the Economic Impact of Short-Termism. February 2017. https://www.fcltglobal.org/wp-content/uploads/Measuring-the-Economic-Impact-of-Short-Termism.pdf.
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