CEOs Discuss Long-Term Plans from Corporate Issuer and Investor Perspectives
Planning ahead to address growth, strategy, and risk
NEW YORK, March 15, 2021 /3BL Media/ —Leading corporate CEOs gathered virtually with former Vanguard Chair Bill McNabb and NRG CEO Mauricio Gutierrez for Chief Executives for Corporate Purpose’s© (CECP) CEO Virtual Roundtable Series. This closed-door, CEO only conversation examined how investor expectations are changing as demand for longer term forward-looking disclosures continue to grow, including integrating material ESG issues and metrics. Attending the session were CEOs who are a part of CECP’s coalition of more than 200 corporations collectively representing $11.2 trillion in annual revenue and $23 billion in societal investment.
Takeaways from the event include:
- CECP’s CEO Investor Forum’s Long Term Plans for sustainable value creation allow capital markets to function more efficiently and encourage companies to align reporting metrics with their aspirations for long-term value creation.
- Developing and integrating ESG practices is more than checking a box, rather it is foundational to success of implementing a long-term business strategy.
- Leading investors are encouraging companies to look and communicate plans beyond the quarter because that’s where most value resides.
- Tying long-term value and material metrics to executive compensation can accelerate progress beyond one-size-fits-all regulation.
- Sector specific frameworks are the most useful for companies to implement relevant metrics and for investors to use to compare companies against one another (e.g., SASB).
“At NRG, comprehensive sustainability is an integral piece of our corporate strategy and ties directly to NRG’s business success,” said Mauricio Gutierrez, President & CEO, NRG. “By adopting the leading ESG reporting protocols, we consistently communicate our priorities and progress with all of our stakeholders.”
“I’m encouraged by the increased level of development of Long Term Plans by companies,” said Bill McNabb, former Chairman, Vanguard. “While there are competing interests from many different frameworks, if we can integrate this broad concept of sustainability into long-term value creation, and convey that in a systematic, regular, and comparable way, the capital markets will be better for it.”
CEOs from the following companies took part in the discussion: BD, Collette, Cowen, Daikin, Edelman, Heidrick & Struggles, HSBC, Macquarie, NRG, Nielsen, Triumph Group, and Vanguard.
“An integrated long-term plan that covers corporate purpose, strategy, financial, and material ESG metrics sets the context for corporate communication,” stated Daryl Brewster, CEO, CECP. “CECP’s proprietary Long Term Plans offer the framework necessary for corporate leaders and the transparency demanded by their stakeholders. The imperative for this type of planning and disclosure is what’s expected.”
The conversation focused on the need for CEOs to share their Long-Term Plans with investors, in venues such as CECP’s CEO Investor Forum in partnership with the Biopharma Sustainability Roundtable on June 7-8, 2021, with the CEOs of GlaxoSmithKline, Johnson & Johnson, Moderna, Pfizer, Merck, Incyte, Sanofi, and Takeda Pharmaceutical Company Ltd.
Previous CECP CEO conversations include sessions with James White, former CEO, Jamba Juice, on his DE&I Playbook featured in Harvard Business Review; Brian Moynihan, Chairman & CEO, Bank of America on the World Economic Forum ESG metrics effort; Deanna Mulligan, Board Chair, Guardian Life Insurance Company of America on her book Hire Purpose and the future of work; Joe Ucuzoglu, CEO, Deloitte US, on how stakeholder capitalism evolved during the pandemic; and Richard Edelman, CEO, Edelman, on the annual Edelman Trust Barometer. More upcoming CEO events will be announced.
The events are limited to CECP CEOs. CEOs interested in joining another event in the series can register, here.
CECP is grateful to KPMG, Newman’s Own Foundation, and USAA for their support of the Board of Boards and CEO Virtual Roundtable series.
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About Chief Executives for Corporate Purpose
CECP is a CEO-led coalition that believes that a company’s social strategy — how it engages with key stakeholders including employees, communities, investors, and customers —determines company success. Founded in 1999 by actor and philanthropist Paul Newman and other business leaders to create a better world through business, CECP has grown to a movement of more than 200 of the world’s largest companies that represent $11.2 trillion in revenues, $23 billion in societal investment, 14 million employees, and $21 trillion in assets under management. CECP helps companies transform their social strategy by providing customized connections and networking, counsel and support, benchmarking and trends, and awareness building and recognition. For more information, visit http://cecp.co.
