Financial industry urged to adopt longer time horizons
The financial industry should be lauded for its role in building a strong society, but it needs to adopt longer time horizons to avoid making poor investment decisions driven by short term considerations, according to statements from the Swedish Church at the annual Almedalen gathering of policymakers, lobbyists and industry experts in Sweden.
The Church put forward proposals that would mandate businesses to account for how well they integrate responses to climate change and human rights. “We also see that the industry needs to see over its remuneration system, so that it encourages long term thinking rather than unintelligent investments,” according to Gunnela Hahn, responsible for investment ownership issues.
“Today we consume natural resources as if we had a planet and a half, at the same time that the population is growing fast. This is an equation that does not fit. Politicians, industry and other key actors in society need to act together,” Hahn added.
The discussion event hosted by the Church at the annual Almedalen week in Sweden included Sasja Beslik, head of Responsible Investment and Governance at Nordea Investment Funds and Carl Rosén from the Swedish Shareholders’ Association.