In 2013, CPPIB co-founded the Focusing Capital on the Long Term (FCLT) initiative with McKinsey & Company to combat the short-term myopia that pervades our businesses and markets.
What began as a loose affiliation of organizations has grown into a palpable movement (and world-class thought leadership platform) recognized for its efforts to advance long-termism in business and investment decision-making.
Building on this successful foundation, CPPIB and McKinsey have come together with BlackRock, Tata Sons and The Dow Chemical Company to launch an independent not-for-profit organization, FCLT Global, led by CEO Sarah Keohane Williamson. Along with these founding organizations, more than 15 asset owners, asset managers and corporations from nine different countries have now committed to become members of FCLT Global.
With a global membership and Board of Directors, including Mark Machin, CPPIB’s President and CEO, FCLT Global is dedicated to developing practical tools and approaches that encourage long-term behaviors in business and investment decision-making
In conjunction with this announcement, FCLT Global released a whitepaper, with new data from a McKinsey Quarterly survey panel, highlighting the challenges that senior business executives world-wide are facing with the rise of short-termism.
The continued short-term pressure that executives experience (for example, 87% of executives report feeling the most pressure to demonstrate financial results within two years, up from 79% from a similar survey two years ago) highlights the important work ahead for FCLT Global.
As a leading investment management organization, a co-founder of FCLT and a Founding member of FCLT Global, CPPIB is committed to helping FCLT Global achieve its goal of developing tools and generating awareness of ways in which a longer-term focus can increase innovation, economic growth and future savings.