Mastercard joins FCLTGlobal to support sustainable economy

By Pavithra R

Mastercard has announced partnering with FCLTGlobal as the non-profit’s latest member. Mastercard joins 60 other companies and investors who are looking to use insights and research to enhance the impact of their respective efforts to support a long-term, sustainable economy.

FCLTGlobal develops research and practical tools to help rebalance capital markets by focusing on critical areas of governance, strategy, investor-corporate engagement, incentives, and public policy. Members participate in action-oriented programming, fund ongoing operations, and promote strategies that support increased education and participation by investors worldwide.

“At Mastercard, we understand that the most impact and authentic change happens when our purpose is tied to the business bottom line. This partnership with FCLTGlobal enables us to use our company’s resources and assets to act in a way that is meaningful and supports long-term, sustainable change,” said Sachin Mehra, Chief Financial Officer.

Through the collaboration, Mastercard will be empowered to create, support and grow networks for long-term sustainable change that will positively impact the future of the economy and the planet. Some of the company’s recent efforts include a pledge to reach net-zero emissions by 2050, a $600 mn sustainability bond offering, In Solidarity action plan to combat racism, ongoing work to bring 1 bn people into the digital economy by 2025 and a carbon calculator tool for consumers to track and minimize the estimated carbon footprint of all their purchases. The firm recently introduced plans to link senior executive compensation to Environmental, Social and Corporate Governance (ESG) initiatives, namely carbon neutrality, financial inclusion, and gender pay parity.

“Mastercard’s mission and recent commitments strongly align with our approach to long-term decision-making – a focus on sustainability, diversity, and forward-looking strategy is proven to drive value over the long term. We’re eager to partner with a company that embodies that mindset,” said Sarah Keohane Williamson, FCLTGlobal’s Chief Executive Officer.

In 2013, Focusing Capital on the Long Term (FCLT) was created as a joint initiative of CPP Investments and McKinsey & Company. The initiative’s message made it was clear that those who participate in the capital markets could be the ones to improve the system, so CPP Investments and McKinsey partnered with BlackRock, Dow, and Tata Sons in 2016 to create FCLTGlobal as an independent non-profit.