Long-term investors can bring more than capital and assess each investment in relation to these global challenges and work with investee company’s management to navigate these paradigm shifts, and changes to their operating models, including ESG issues and the environmental and social impacts of their businesses. By identifying and assessing relevant ESG impacts as part of the investment process, and by ensuring that risks are properly managed and opportunities capitalised upon, long-term investors create more successful and sustainable businesses over the long-term.
Short-termism can undermine progress towards more sustainable business practices, and the tension between “quarterly capitalism” and managing for the long term is growing sharper. Longterm investors believe that, to sustain long-term value creation, a company must understand the societal and environmental impact of its business as well as structural trends that might affect future growth.
Lord Davies, Chairman, LetterOne will lead this virtual discussion with contributions from Sue Meng, Debevoise, and experts from EY and McKinsey & Company among others looking at these questions and more:
How can publicly traded companies change their focus from short-term financial performance, to the underlying health of the business? What insights can Long-term investors share on developing new KPI’s – such as innovation, talent and trust? What is the management team’s relationship like with regulators, with the community, and with people they’re trying to hire over time to ensure the company’s survival? Is there the investor support to do it?
BAB’s Corporate Citizenship & Sustainability Series is a bespoke series of roundtables and business briefings covering critical Environmental, Societal and Governance (ESG) issues in business and private sector-led initiatives in support of COP26, the UN Framework Convention on Climate Change and the UN Sustainable Development Goals (SDGs). This series provides a platform to stimulate debate and conversation amongst business leaders, relevant policy makers and stakeholders to advance the guiding principles of COP26 for the U.S.-UK transatlantic corridor.