New research from CLT Global (formerly “Focusing Capital on the Long Term”) highlights the challenges and costs that senior business executives world-wide are facing with the rise of short-termism.

The key findings of the report, are that 87% of executives report feeling the most pressure to demonstrate financial results within two years, up from 79% in a similar survey from 2013; emerging market executives were significantly more likely to report increasing short-term pressure (82%) than their peers in Europe (64%) or North American (65%); and executives from companies with a strong commitment to long-termism were 26% less likely to say they would decrease discretionary spending and 22% less likely to delay new projects to meet earnings targets when compared to their peers at more short-term oriented companies.

CLT Global started as an initiative formed in 2013 by Canada Pension Plan Investment Board (“CPPIB”), and McKinsey & Company. As part of its relaunch as an independent not-for-profit organisation dedicated to encouraging long-termism in business and investment decision-making, the group has announced a new board of directors and global membership.

The founders of the new organisation, FCLT Global, are BlackRock, CPPIB, The Dow Chemical Company, McKinsey & Company, and Tata Sons.  FCLT Global’s Chief Executive Officer, Sarah Keohane Williamson, said: “Short-termism is an issue that is costly to many countries and regions around the world, and we have a lot to accomplish. Our founding organizations and members are integral to the work of FCLT Global in developing practical approaches to creating long-term value and to implementing innovative ideas to advance greater long-term behaviours.”

The global chair of FCLT Global is Mark Wiseman, global head of active equities and chairman of BlackRock Alternative Investors. Larry Fink, chairman and chief executive of BlackRock, will serve as a strategic advisor to FCLT Global.

In addition to the founders, FCLT Global involves member organisations, from nine countries, committed to achieving long-term tangible actions that benefit businesses, markets and societies more broadly. The members include: APG, ATP, BP, Caisse de dépôt et placement du Québec, Edelman, GIC, Hillhouse Capital Group, Kempen Capital Management, New Zealand Super Fund, Ontario Teachers' Pension Plan, PGGM, Piramal Enterprises Limited, Russell Reynolds Associates and State Street Global Advisors.