Overcoming the Barriers to Long-Term Thinking

Forum for the Future aims to inspire new thinking, build creative partnerships and develop practical solutions; well as sharing learning for others to benefit and act. The report analyses the reasons why short-term thinking is so entrenched and makes recommendations on specific action that companies, asset managers and investor can take now to change this.

 

The report involved research into the behaviours, structures and incentives that reinforce short-termism within the economy and the current initiatives in this area.

Three key areas where first steps could generate the most momentum:

  • more strategic reporting and communication on long-term risks and opportunities between companies and investors;

  • deeper questioning by asset owners on whether their investments are designed to meet their long-term needs; and

  • improved structures for remuneration that reflect innovation, efficiency and other long-term drivers of value.

Forum for the Future - an independent, non-profit organisation, working globally with business, government and other organisations to solve complex sustainability challenges.

Read more on Forum for the Future's website.