There is no question that this year demonstrated that these challenges are part of decision-making for today and tomorrow. There has never been a more meaningful time to focus capital on the long term to support a sustainable and prosperous economy – the mission of FCLTGlobal.
We believe that we can achieve that mission through a focus on three key areas:
- Longer investment horizons – Developing strategies that companies and investors can implement to prioritize long-term growth and avoid the short-term behaviors that hinder progress.
- Broader business objectives – Researching the connection between stakeholder considerations and long-term value creation.
- Capital markets for greater economic mobility – Building pathways for economic mobility through investment decision-making and ownership.
Each of these areas is critical to our strategy to be a global, cross-value chain, CEO-led community supported by practical insights and a clear point of view. In each of these areas, we are grateful for a productive 2023.
Our members, our board, and the entire FCLTGlobal community are committed to achieving our shared goals. Our research is grounded in real-world evidence, independent, and aimed at answering the most pressing questions in capital markets through the lens of strong governance, well-designed incentives, robust investor-corporate dialogue, sensible metrics, and public policy that provides an environment conducive to all the above.
But we know that despite the progress we have made, the gap between where we are and where we need to be remains significant. The latest data tells us that, globally, corporate investment horizons have shortened by 6%, and savers’ by 4%.
In 2023, we continued to see pushback or trepidation surrounding issues of “sustainability.” We define “long-term” as making sound decisions for the future that lead to resilience and growth and “short-term” as decisions that sidetrack us from that future. Whether you call that “long-term,” “sustainability,” or just sound decision-making, the fact remains that competing in the future requires creating value for a range of stakeholders. We seek to focus attention on building a future in which companies and investors contribute sustainably to our economies, the planet, and people around the world.
Therefore, understanding the trends working in our favor – or those putting short-term pressure on us – is the key to overcoming them. Indeed, we continue to face the 5 Ds of disruption we outlined at the start of last year as a new year begins.
It is easy to be sidetracked by today’s news, but for business, investors, savers, and communities to succeed, a long-term focus is indispensable.
And so, I want to thank our members, board members, strategic advisors, staff, and all our partners for helping us to work toward a goal of focusing capital on the long term to support a sustainable and prosperous economy. We are grateful for your hard work, ongoing support, and above all your shared dedication to our mission.
To a happy and healthy 2024,
Sarah Keohane Williamson
Chief Executive Officer, FCLTGlobal