Businesses remain torn between making socially responsible investments and meeting the short-term expectations of the stock market.
The rise in sustainable investing has been hampered by short-termism in capital markets, which tend to judge companies more on their short-term financial performance than their investments towards ensuring a sustainable future.
"If you put yourself in the shoes of a real sector CEO, you are a little bit torn between your own business strategy that is long-term and the expectations of the stock market that fluctuates on a daily, weekly basis…that judges you on your quarterly, semi-annual and annual reports," Christian Thimann, the chief executive of Athora Germany, told DW. "I see many CEOs who feel under pressure because of this short-term stock market pressure."
The rise in sustainable investing has been hampered by short-termism in capital markets, which tend to judge companies more on their short-term financial performance than their investments towards ensuring a sustainable future.
"If you put yourself in the shoes of a real sector CEO, you are a little bit torn between your own business strategy that is long-term and the expectations of the stock market that fluctuates on a daily, weekly basis…that judges you on your quarterly, semi-annual and annual reports," Christian Thimann, the chief executive of Athora Germany, told DW. "I see many CEOs who feel under pressure because of this short-term stock market pressure."
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