Resources
We conduct original research on the causes of short-term business decisions and work to find practical solutions.
Innovation | Article
10 November 2021 - Corporate R&D spending increased significantly during the pandemic, setting the stage for a future boom in innovation and value creation. Is this a sign of the winners just pulling ahead of the rest?
Investor-Corporate Engagement | Article
27 October 2021 - A lack of “decision useful” climate disclosures has been a cause for discontent on both sides of the investment value chain.
Risk and Resilience, Governance | Article
21 October 2021 - By Allen He Oversight boards and their investment teams often speak different languages when it comes to risk. The often repeated pattern is one of in depth discussions without clarifying long-term implications – not seeing the forest through the trees. Then, inevitably, board members are surprised by portfolio movements in the face of market stress events. Boards can take on a very short-term focus during such periods of uncertainty, often to the extent of losing confidence in the management team or their strategy and wanting to...
Metrics | Article
12 October 2021 - Thanks to decades of advocacy, some very real climate-related disasters, and meaningful progress on the global policy and regulatory stage, climate consciousness is finally in vogue with mainstream companies and investors.
Metrics | Article
1 October 2021 - Investors look for sustainability and non-traditional metrics from companies they invest in, but what if they held themselves accountable in the same way? This piece is from a blog series written by members of the Global Future Council on Investing exploring factors shaping the investment portfolio of 2040.
Stakeholder Capitalism, Metrics | Article
23 September 2021 - By Ariel Babcock CFA, Allen He CFA, and Devin Weiss Intuitively, many companies understand the importance of strategically investing in their employees. Past academic research has found employees contribute materially to the long-term value creation of a corporation. For instance, the “100 Best Companies to Work in America” had significantly higher stock returns than industry averages. Higher firm investment in intangible assets is associated with higher revenue, and strong relationships have been demonstrated between employee satisfaction, productivity, and loyalty to the consumer base. Given the links between...
Risk and Resilience, Innovation | Article
23 August 2021 - By Matthew Leatherman The U.S. House of Representatives is heading toward a vote on a trillion-dollar infrastructure bill, including numerous program reauthorizations and $550 billion in new spending. From across the northern border, the reaction from John Graham, President and CEO of Canada Pension Plan (CPP) Investments, is about how to “increase spending even beyond that amount.” These are eye-watering numbers and Graham is right. Massive additional sums will be needed for climate resilience, complete removal of lead from water lines, restoration for communities of color severed by...
Stakeholder Capitalism | Article
7 July 2021 - Many businesses have operated from a shareholder primacy playbook when cultivating long-term financial strategies. However, recent events are inspiring a shift across the investment value chain.
Metrics | Article
18 June 2021 - In light of demand for climate change information and questions about whether current disclosures adequately inform investors, the SEC recently requested public input on climate change disclosure.
Article
16 June 2021 - By Allen He, CFA As the global economy rebounds, companies are preparing to launch a record wave of buybacks. Buybacks have become a global phenomenon over the past 20 years, with many companies viewing them as an attractive alternative to dividends in returning capital to shareholders. They are flexible, recycle excess cash to the economy, and provide tax advantages in certain jurisdictions. While buybacks can indeed be an effective way to distribute capital under certain circumstances – and can be used to signal to investors that their...
Risk and Resilience, Stakeholder Capitalism | Article
27 May 2021 - Expectations placed on investors are ever-changing, can emerge from any of the institution’s many constituents, and extend beyond matters of law, regulation, or contracts.
Metrics | Article
19 May 2021 - On 19 May 2021, five global data providers released a joint statement in support of the creation of a core set of metrics for all companies regardless of sector, geography, or size.