Good governance: Navigating on purpose and complexity-based principles

Long-term investors face the same challenges as the companies they invest in. Investors need to have a clear purpose as a beacon for their strategies and a worldview that is in line with reality. Via different financial instruments and investment vehicles, long-term investors are ultimately invested in companies. To make their portfolio long-term financially sustainable and resilient to shocks, long-term investors need to search for companies that have both a clear purpose and a realistic worldview. This chapter takes a deeper look into the companies in which long-term investors are invested and what makes these companies sustainable from a governance perspective.