Analysis-Trump's call to end quarterly reports gets unlikely support from climate-conscious investors

Core Viewpoint - Donald Trump's call to abandon quarterly corporate reporting has garnered cautious support from international investors advocating for a focus on long-term sustainability issues [1][2]. Group 1: Shift in Reporting Frequency - Trump proposed that companies should move to six-monthly updates, aligning with views from business leaders like Warren Buffett and Jamie Dimon, who argue that short-termism negatively impacts the economy [2]. - Transitioning away from quarterly reporting could align the U.S. with a global trend and assist investors in urging companies to address sustainability issues that increasingly affect corporate value [3]. Group 2: Investor Perspectives - Responsible investment advocates have historically opposed quarterly reporting due to its tendency to prioritize trading over effective ownership [4]. - Many European and international investors seek climate-related data, which is often omitted in a quarterly reporting framework [5]. Group 3: Long-term Strategy and Sustainability - Investors desire companies to assess the long-term impact of their strategies and manage sustainability-related risks, suggesting that reducing the frequency of reporting could be beneficial if it does not compromise transparency [6]. - A reduction in quarterly reporting obligations may encourage companies to enhance sustainability-related disclosures [7]. Group 4: Market Implications - Changing long-standing securities laws would represent a significant shift for the U.S. capital market, which includes over 4,000 companies with a total market capitalization exceeding $60 trillion [8]. - Many overseas investors are accustomed to six-monthly updates from companies in various regions, including the EU, UK, Australia, New Zealand, and Hong Kong [8].