The current challenging context will reveal to companies which of their shareholders have a long-term view—and which do not.
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Prior to the last financial crisis, the shareholder primacy model of corporate governance was unchallenged. Companies were run solely to the benefit of shareholders, with share price performance being the ultimate measure of a company’s success. Since then, sustainable investing has grown to become one of the most attractive investment strategies. As the integration of environmental, social and governance (ESG) factors into investment is progressively becoming mainstream, investors have placed greater focus on how companies “create value” for the longer term and what their “purpose” is.
The shift in mindset and in capital allocat
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The UK’s Financial Reporting Council has published proposals for a streamlined governance code, while research from Mazars, in association with ecoDa, finds compliance with the existing framework to be variable.
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