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 Sydney: 28th June 2006
Venue: Sofitel Wentworth
Melbourne: 4th July 2006
Venue: Sofitel Melbourne
Sustainability requires a much longer time horizon than businesses and organisations currently have. What solutions are available for overcoming this barrier to corporate sustainability?
For sustainability issues to be taken into account, decision makers need to have a longer time horizon. The reality is that the timeframes for business and government are usually much shorter – sometimes as little as a few months.
Not convinced short-termism is an issue? Al Gore is:
"The investment marketplace worldwide is under a strange spell. Short-termism has led to a distortion of values and priorities and a seemingly endless string of bad decisions”.
“This emphasis on the extreme short-term horizon works against the best interests of shareholders, the sustainability of the profits of the company, the environment in which it operates, and the values that it should be following".
Al Gore, former Vice President of the United States, speaking at the Association of Superannuation Funds of Australia Annual Conference in 2005. Full Article
SpeakersChair (Sydney & Melbourne): Stephen Long - Finance Correspondent, ABC
Sydney:
Michael Hawker – CEO, Insurance Australia Group
Professor Ian Lowe AO – President, Australian Conservation Foundation
Hon. Susan Ryan AO – President, Australian Institute of Superannuation Trustees
Dr Steven Kennedy – General Manager, Domestic Economy Division, Australian Treasury
Tony Cope - Head of Office, GPT Office Portfolio , GPT Group
Melbourne:
Michael Ullmer - Director, Risk and Finance, National Australia Bank
Don Henry - Executive Director, Australian Conservation Foundation
Steve Gibbs - CEO, Commonwealth Superannuation Scheme
Tony Cope - Head of Office, GPT Office Portfolio , GPT Group
Terry A'Hearn - Director, Sustainable Development, EPA Victoria
Background informationShort-termism has long been identified as a financial problem by the business community, with organisations like the Business Council of Australia and the Group of 100 CFOs both raising it as an issue of concern. In the financial sense, the BCA defined it as:
“The excessive preoccupation with activities designed to deliver improved near-term returns at the expense of those that could deliver higher returns and outcomes over the long run” (Business Council of Australia Study, 2004 )
So why is short-termism a barrier to corporate sustainability? The 1987 Brundtland Report , defined sustainable development as:
"Meeting the needs of the present generation without compromising the ability of future generations to meet their needs."
A sustainable society requires decision makers in business and government to think in time frames of at least 30 years. For environmental issues such as climate change, the time horizon is even longer.
“Governments and business often want predictions of what will happen in the next two decades. But the researchers argue that natural variability of climate makes this almost impossible, and that regional climate models are in fact most useful for predicting trends beyond 2070." Link to the full story
These very long time horizons simply aren’t reflected in today's business culture where the stats are:
- The average US Mutal fund turns over its entire portfolio every 10 months. (Gore, 2005 )
- 4 out of 5 US CEOs say they would not make an investment that provided long-term returns and risked them not meeting their short-term profit targets. (SMH, 12/11/2005 )
Post-Debate Forum: Short-Termism and ReportingSydney:
Venue: Sofitel Wentworth Sydney, Boardrooms 1 & 2, 61 - 101 Phillip Street, Sydney
Date: 28th June 2006, Time: 10:30 - 12pm
Speakers:
Chris Jack - Principal, URS Australia
Linda Funnel-Milner - Chair, GRI Stakeholder Council
Dr Ian Woods - Senior Research Analyst, AMP Capital Investors
Melbourne:
Venue: URS Office, Level 6, 1 Southbank Boulevard, Southbank, Melbourne
Date: 5th July 2006, Time: 9 - 10:30 am
Speakers:
Terence Jeyaretnam - Principal, Sustainability Reporting, URS Australia
Francis Grey - Manager of Research, Sustainable Asset Management Australia
Blair Keenan - Senior Manager, Investor Relations, ANZ
Hany Messieh - Head of Investor Relations, National Australia Bank
After the Myopia debates in Sydney and Melbourne, we will be holding smaller forums focused on the role corporate reporting plays in fuelling short-termism, and what can be done to make reporting part of the solution.
A small number of large listed companies have said quarterly financial reporting creates a more short-term focus in companies and investors. Others have argued that continuous disclosure requirements also add to a short-term focus.
Sustainability reports rarely span more than a year. Some support ‘real-time’ reporting of sustainability performance, others are discussing bi-annual reporting periods. How can corporate reporting contribute to the solution, not the problem?
Green Capital subscribers and attendees to the Myopia debates can attend free. Guest tickets for the post debate forum are $55. Places are limited, so book now.
Why you should be there
For Everyone
- Understand the causes of short-termism
- Learn about strategies for combating short-termism from the organisations on the panel
- Get involved. Ask questions directly to our panel
For Business
- Hear how short-termism is affecting businesses and their investors
- Hear from business and environment sector leaders on the junction between short-termism, business and sustainability
- Network with other businesses, organisations and NGO’s
For Government
- Hear how short-termism is affecting businesses and their investors
- Hear from Federal Treasury about their insight into the interaction between short-termism and sustainability
- Understand the role of government in minimising short-term pressures
For NGOs
- Learn about one of the big barriers to corporate sustainability
- Hear about different options proposed as solutions to the problem
- Identify how short-termism impacts on your campaign agenda
Speakers
Background Information
Post Debate Forum: Short-termism & Reporting
Why you should be there
Getting there
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