Climate | Report
13 December 2021 - Since the Paris Agreement, many companies have committed to different levels of decarbonization in line with climate goals. From making net-zero commitments to setting targets aligned with the Science Based Targets initiative, more and more companies are signaling their commitment to climate.
Report
6 December 2021 - FCLTCompass tracks long-term investments on a global scale. The project anchors long-term investing to quantitative data reported in years and dollars, framing the conversation around sustainable finance in a more actionable light.
Risk and Resilience, Climate | Report
30 September 2021 - In the last few years, it has become well accepted that climate risk is investment risk, and environmental, social and governance (ESG) linked assets have skyrocketed.
Governance | Report
19 July 2021 - Despite the evidence of the benefits of increased leadership diversity, progress at private companies has been slow.
Stakeholder Capitalism, Risk and Resilience | Report
21 June 2021 - Expectations of long-term investors have expanded well beyond usual notions of their core purpose to include their impact on markets, society, and the environment. The fact that investors have broader responsibilities is clear. Defining those responsibilities is not. Investors need a common way to identify, anticipate, and communicate responsibilities before they can aspire to fulfill them across their organizations.
Incentive Alignment | Report
8 March 2021 - The Risk of Rewards presents practical approaches that companies and their investors can use to frame their decisions about corporate executive remuneration to support long-term value creation
Report
22 December 2020 - Our 2020 Year in Review, a report that captures FCLTGlobal’s research, virtual programming, and the contributions of our 50+ Member organizations.
Report
7 December 2020 - FCLTCompass is an annual reporting of money as it flows through the global investment value chain. Taking 10+ years of financial data, it traces investors’ savings through various asset vehicles, finally arriving at the companies that deploy it in support of economic growth.
Investor-Corporate Engagement | Report
6 October 2020 - Returning capital to shareholders is an important and legitimate goal of many corporations. Buybacks are often an effective way to distribute capital, but care must be taken to mitigate downfalls related to personal gain and enrichment, poor timing, and excess leverage.
Governance | Report
1 October 2020 - Although the advantages of maintaining a long-term orientation are clear, the practical aspects of managing for long-term performance are less well understood. FCLTGlobal and McKinsey have published joint studies revealing a few things that long-term companies don’t do, such as invest modestly in R&D and use accounting methods to lift reported earnings. In this report, we build on that analysis to identify the behaviors that long-term companies consistently exhibit. We also propose actions that boards and executives can take to promote these behaviors.
Innovation | Report
9 August 2020 - R&D spending, especially long-horizon R&D project spending, faces a unique set of short-term pressures relative to other types of long-term investment. When facing short-term financial pressures, behavioral biases including manager risk aversion and uncertainty around forecasting potential future returns (among other things) lead to a tendency among management teams to cut long-horizon projects first. The declining tenure of managers, the lack of innovation-linked metrics in incentive compensation plans, the typically asymmetric return profile of long-horizon projects, and an investment community that often ignores the potential impact of long-horizon innovation spending in a company’s valuation analysis all contribute to this...
Investor-Corporate Engagement | Report
25 June 2020 - The prevailing wisdom is that activist investors can drive corporate short-term behavior singlehandedly. The prevailing wisdom is wrong.