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Jul 04, 2011

Call for focus on long term

Non-profit organization releases report encouraging companies to communicate more on sustainability

A new report has called on companies to spend more time talking with the buy side about long-term business plans and sustainability.

‘Overcoming barriers to long-term thinking’ notes that a lack of communication between issuers and investors on these issues is contributing to short-termism in financial markets.

The report was produced by Forum for the Future, a non-profit organization promoting sustainable development.

‘A key barrier to long-term thinking and sustainability is poor information flow, including the amount and nature of communication between asset managers and companies,’ states the report.

The paper also calls for more transparency over executive pay to pressure companies into adopting pay practices that incentivize long-term thinking.

Click here to read the full report.

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