Long term value
The health of corporations and financial markets – and public trust in both – is critical to economic growth. Our collective future strongly depends on vibrant and sustainable capital markets – and market participants have a role to play in ensuring long-term value creation that benefits all.
Today, a company’s value is increasingly reflected not just in its short-term financial performance, but also by intangible assets such as intellectual property, talent, brand and innovation. However these are not fully captured by traditional financial statements.
The Embankment Project for Inclusive Capitalism
Over the past 18 months, the Embankment Project for Inclusive Capitalism has brought together over 30 of the world’s leading companies and investors, representing almost $30 trillion of assets under management, to tackle these challenges. The project has sought to develop new metrics and methods that help businesses measure and articulate the value they create for a broad range of stakeholders.
One of the project’s key components was the further development of EY’s Long-Term Value (LTV) framework which was tested and validated by asset owners, asset managers and companies. The aim was to create standardised metrics to help measure how companies deliver value for all stakeholders.More work is needed to build on these results, but the Embankment Project for Inclusive Capitalism represents an important step forward. Find out about the key findings and read insights from EY in the Discover more section below.
Hywel Ball – Building trust
Hywel Ball talks about the new long term value reporting framework that EY has been working on and its role in restoring trust in society.
The Embankment Project for Inclusive Capitalism: Report
This report describes insights from the project, its new open-source methodology, plus a set of metrics to help companies build long-term value.
Long Term Value Framework
Find out how your business could measure the impact of intangible assets on its long-term success.
Measuring long-term value: Nothing is more practical than a good theory
Interview with Barend van Bergen, EY Global Long Term Value Methodology Leader and Monique Donders, Country Manager, BlackRock, the Netherlands.
In today's world, how much trust is enough?
EY's Trust Analytics methodology helps companies define and measure trust as an indicator for future financial performance.
Sustainability as a driver for future performance
Doug Johnston discusses the importance of sustainability for delivering a successful business strategy.
Is everything that counts being counted?
Find out how CEOs and boards can ensure they clearly communicate the long term value they are creating for their stakeholders.
Financial Reporting Outlook 2018
Barend van Bergen discusses long term value and the Embankment Project for Inclusive Capitalism at the Financial Reporting Outlook conference.
Is non-financial reporting good for business?
David Santoro discusses why non-financial reporting is good for business and what companies need to prepare to be on the front foot of measuring their non-financial assets.
Finding a first-class response to investor letters
Ken Williamson discusses why companies should view investor letters as an opportunity to articulate their purpose and examine how they meet the needs of all stakeholders.
Rebooting private equity valuation for the 21st century
Paul Warn explores how can private equity benefit from looking at long term value.
Can long-term value thinking help companies counteract short-termism?
Barend van Bergen discusses how long-term thinking can help companies successfully engage with activist investors.
Why a strong sense of purpose can be good for society and business
With little doubt that environmental, social and ethical factors are more likely than ever before to impact reputation and business performance, Doug Johnston explains why having a strong sense of purpose can be good for society and business.
How do you tell the truth, the whole truth, about value?
Alison Kay discusses the importance of intangible assets for better measuring companies’ long-term value.
As the future becomes less certain, why does long-term value get more important?
Karl Havers explains how EY's new reporting framework can help companies measure their ability to deliver in the future rather than just recording the past.
Are market led collaborations enough to solve the ‘grand challenge’ of short-termism in the capital markets?
Loree Gourley discusses how to help solve the ‘grand challenge’ of short termism through a collaborative approach to measuring long-term value.
Is data the key to creating and measuring long-term value?
Ben Taylor talks about why data is key to creating and measuring long-tem value.
Beyond the numbers – is everything that counts being counted?
Hywel Ball discusses why a new reporting framework is needed to better measure and articulate a company's long term value creation.
How do you measure the long-term value of culture?
Karl Havers shares his thoughts on why culture is crucial to the long-term success of an organisation and how we need new ways to measure its true value.