The 2030 Agenda for Sustainable Development constitutes a roadmap for where we, as a society that includes the private sector, need to go in just over ten years until 2030. A new study from Stockholm Sustainable Finance Centre and Swesif shows that half of buy-side analysts as well as corporate investor relations officers think that sell-side financial research has a detrimental short-term focus. More than a third of sell-side financial analysts agree with this.
The study initiated by Swesif and published in Stockholm on 28 May was prompted by a general concern over undue short-termism in financial markets generally and financial analysis specifically. It is set in Sweden and based on a survey from both buy-side and sell-side analysts as well as investor relations officers. Questions aimed at finding out what each group sees as a long-term perspective, to what extent respondents perceive long-term questions to be addressed in investment analysis, and what factors they see as standing in the way of a more long-term perspective.
“We have looked at how different actors in investment analysis define ‘long-term’ for themselves, and how they address long-term questions in investment analysis,” said Emma Sjöström, SSFC Deputy Director of and one of the report’s three authors. “We arrive at a number of propositions to actors in investment analysis that could help bring more of a long-term perspective into the capital market conversation.”