Why long-termism matters more today

What’s going on?

There’s a clear move to long-termism. Visible in everything from politics and the City to communicating in a more low-key way with Gen Z.

Autumn UK and US elections will mean long-term policy chatter. Despite the ESG performance debate, flows continue into ESG funds, with increased focus on the ‘S’ for social impact.[1] While former Lord Mayor of the City of London, Nicholas Lyons, has created in the Mansion House reforms a long-term legacy to secure capital into high-growth British businesses.

Why does it matter?

Falling foul of long-term behavioural standards legislation, such as Consumer Duty, risks easily avoidable reputational damage. Monzo has been called out for escalating fees[2] and the FCA is rebuking unfair ‘buy now, pay later’ terms.[3]

The latest disclosure framework from the net zero Transition Plan Taskforce, the gold standard for best practice sustainable behaviour, now requires companies to report on how their strategic ambitions will positively advance social equity.[4]

Meanwhile demand for better behaved brands and the desire to work for companies that do the right thing continues, particularly for Gen Z, who will comprise 27% of the workforce by 2025 and represent $7 trillion in purchasing influence.[5]

What can we do?

• Be clear on your purpose. Short-term responses to economic headwinds cannot come at a cost to investing in what makes you meaningfully different in the first place.
• Be confident in communicating this difference. Fewer, bigger, better is a good starting point for campaigning activity, with a focus on creating catalytic experiences.[6]
• Hold fast in doing the right thing for the long term. As Ginni Rometty, former Chairman and CEO IBM, says in her book, Good Power: Leading Positive Change.

For more from our 2024 Signals Report, read the full piece here. Or if you’d like to discuss the impact of these signals on your business contact us at hello@teamspirit.co.uk.

1. Association of Investment Companies (AIC) annual ESG Attitudes Tracker October 2023 found 91% of advisers and wealth managers recommending sustainable funds and 72% expecting demand to increase.
2. Monzo launches ISA (read this before you invest) (telegraph.co.uk)
3. FCA rebukes PayPal over 'unfair' buy-now-pay-later terms as sector braces for clampdown (cityam.com)
4. TPT Disclosure Framework – Transition Taskforce
5. https://www.oliverwymanforum.com/global-consumer-sentiment/a-gen-z.html
6. https://www.gartner.com/en/newsroom/press-releases/2023-05-22-gartner-says-catalytic-marketing-allows-cmos-to-drive-profitable-growth-amid-macroeconomic-pressures