Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Investor-Corporate Engagement, Policy | Video, Article
23 June 2020 -
Policy | Article
31 October 2019 - Updates widen scope to span asset classes and geographies, and increase focus on activities and outcomes of stewardship
Metrics, Policy | Article
25 October 2019 - The U.S. Securities and Exchange Commission has proposed amendments to corporate disclosures to include tangible measures human capital objectives.
Policy | Article
26 September 2019 - Representatives from FCLTGlobal were delighted to participate in the European Securities and Markets Authority’s (ESMA) workshop on short-termism, held in Paris on 16 September 2019. ESMA’s work on short-termism followed a Call for Advice issued by the European Commission to develop a report presenting the evidence and possible advice on potential undue short-term pressure on corporations. The workshop was a series of structured segments based on research and evidence gathered by ESMA staff: investment strategy and investment horizon; disclosure of environmental, social and governance (ESG) factors and the...
Policy | Article, Press Release
19 August 2019 - FCLTGlobal commends the Business Roundtable and all 181 CEOs that have signed on to today’s Statement on the Purpose of a Corporation. Research shows that creating long-term value is a critical part of a chief executive’s role, for a company’s shareholders but also for the many other stakeholders in its investment value chain – employees, customers, or the community in which it operates. It is important to clarify this responsibility, especially in a rapidly evolving global economy where businesses are looking for new ways to...
Policy | Article
25 July 2019 - On 18 July, the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance held a public roundtable to hear from investors and other market participants about the impact of short-termism on capital markets and whether its reporting system, or other aspects of its regulations, should change to address these concerns. View the full webcast of the roundtable here The first panel of the afternoon addressed the root causes and impact of a short-term focus on capital markets, and sought to help the SEC identify potential market practices and...
Policy | Toolkit
10 June 2019 - Effective stewardship codes help promote a mindset of shared ownership between investors and investees and are an important mechanism for investors to maximize long-term value creation. At the core of stewardship is deliberate monitoring and regular engagement between investors and investees. In response to client and beneficiary demand, asset owners and asset managers alike are dedicating resources to stewardship. To facilitate this work, FCLTGlobal has reviewed stewardship codes from around the world, gathered input from our expert members, and compiled a user-friendly checklist of key questions....
Policy | Toolkit
10 June 2019 - A good stewardship code helps clarify the responsibilities of institutional investors, laying out core principles to foster a shared understanding among stakeholders including regulators, investors, and investees. To ensure that stewardship codes put primary emphasis on long-term value creation, FCLTGlobal has worked with its members to identify seven principles of long-term ownership that could be incorporated into new or revised stewardship codes. These codes represent the highest common denominator of high-quality codes around the world, using principles that are equally applicable for asset owners and asset...
Policy | Toolkit
10 June 2019 - Stewardship codes can help investors articulate their guiding principles and enhance long-term value creation for beneficiaries. Increasingly, asset owners and asset managers alike are dedicating real resources to implementing stewardship codes — including the central tasks of monitoring key metrics and regularly engaging with investees. These responsibilities can rest with centralized stewardship teams or become a shared responsibility across departments. Drawing on the expertise of our members, FCLTGlobal has compiled this conversation guide to help stewardship, proxy voting, responsible investing, and environmental, social, and governance (ESG)...
Investor-Corporate Engagement, Policy | Article
5 April 2019 - Research has consistently found that the vast majority of corporate executives think that short-term pressure is changing their business decisions and harming long-term value. Recent work from FCLTGlobal has shown that an effective way to combat this phenomenon is by moving away from quarterly guidance. After calls from the White House and American business leaders in the latter half of 2018 to reexamine the standards for corporate guidance and reporting in American business, the U.S. Securities and Exchange Commission has requested public comment on how to enhance the investor protection attributes of periodic disclosures...
