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🗞️ Driving the news: President Donald Trump proposed on Monday that U.S. companies should stop reporting earnings quarterly and instead shift to semiannual disclosures
• Writing on Truth Social, Trump argued the move—subject to SEC approval—would reduce costs and let corporate leaders focus more on long-term management rather than short-term financial targets
🔭 The context: This is not the first time quarterly reporting has come under scrutiny
• In 2018, Warren Buffett and Jamie Dimon criticized quarterly guidance for encouraging short-termism
• While quarterly earnings reports are currently required by the SEC, issuing forward-looking guidance is optional
• Notably, markets like the UK, EU, and Hong Kong already allow or mandate semiannual reporting, offering a precedent for Trump's proposal
🌍 Why it matters for the planet: Critics argue that quarterly reporting pressures companies to prioritize short-term financial results over long-term investments, including those in sustainability and climate transition
• Moving to semiannual reports could enable firms to better align financial strategy with environmental and social goals—though it may also reduce transparency for investors in the short term
⏭️ What's next: Any change to reporting frequency would require action by the SEC or legislation from Congress
• The proposal is likely to spark renewed debate among investors, corporate governance advocates, and sustainability professionals about balancing transparency with long-term strategic planning
• Institutional investors may weigh in, especially those prioritizing ESG metrics over quarterly earnings
💬 One quote: “Quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability.” — Warren Buffett & Jamie Dimon (2018)
📈 One stat: Public companies in the U.S. are currently required to file four earnings reports per year, compared to two in the UK and EU under existing regulation
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