for environmental, social and corporate governance, lots of buzzwords which are essentially interchangeable with sustainable investing, socially responsible investing, or mission related investing. it's really nothing new. it's the same concept being rebranded over and over again into a pretty new package and a fancy new acronym. millennials are now the driving force behind e s g. so what happens when these objectives of e s. d, lead to poverty will be answering these questions and a lot more. i'm christy i and you're watching the cost of everything we're today. we're going to be taking a deeper look at this e s. d investing trends i. e s t has become a major driving force and in no other place has e s t been more influential and destructive than the african country of gonna. the central bank of gonna, and the gonna association of bankers launched the country sustainable banking

principles and sector guidelines in november 2019. furthermore, in may of 2021. the securities and exchange commission signed an agreement with the international finance corporation to help develop green bonds in gonna gonna ahead of se, score of 97.7 as the result of embracing a push for organic fertilizer and renewable energy. but the problem's gonna appears to be facing includes a lack of consistent energy and food shortages. and it's not just in gotta africa. $54.00 countries are responsible for 2 to 3 percent of cumulative, carbon emissions from energy and industrial sources. these countries have missed the fossil fuel and industrial revolution. and while they have contributed virtually nothing to the current climate crisis, they will be the most affected by the changing weather patterns. now they're being told that they have missed the boat because these countries are being forced to not

use their own fossil fuel. in an effort to promote a green western agenda. western government and private banks and all the s t investors are denying them the opportunity to use fossil fuel and instead telling them that they should rely on solar and wind, but without helping them to pay for setting up the infrastructure. but what about kenya? the new canyon president william rudo has made a promise to switch from fossil fuel to clean energy. so how can you implement the environmental, social and governments criteria? for this, we bring in collins kanadi, e s g and sustainability advocate as sustainable square. so call and do you think it is hypocritical, that african nations are being asked to transition to greener energy even though they are not really the problem here? or i guess you could say they are a smaller problem when it comes to climate change. yeah, dick,

you buffy already did when you been for the garbage collection. no one cared, no much getting those will be home. you have to pay for the garbage and he spends a nancy that young all be the same, but on that bridge is never just so out sin when it comes to climate change. yes, we might be a meeting less than 2 percent of these come with images, you know, that are being emitted globally by the fact remains. when these got us of stuck eating us, i forgot the more stuff to continue to. i think there is no time to ask how much she wore you are, you know, a how much your your percentage is to the contribution of all these clemency defects. it's all about calling together and doing visiting words. if we start asking yourself that restaurant, i have seen an image to you only live one continental title. these things was more whispered machine was a mission and no longer one. and now western banks are not financing oil and gas

projects anymore because of climate change concerns. those are quite valid concerns . but what do these african nations do without this financing, and how can they even develop the truth is it's challenging because that the kind of financing that has kept going for a long time. but then we all love to remember. there is a price to face. if you really want things to be better on the, the of look the other way and say we of practice, responsible business practices are responsible in the social effective practices. so the, to these, we just done, stand up one day until you're not finding them anymore. you know, it has to be a gradual process because if we do that, then we start getting another problem than before we solve the other problem. so i from where i stand, even locally a, you know, financial institutions, the, are financial institutions and just say, hey,

you guys them of what i found you. if you are doing the scale of activities, you have to switch to these other way. so personally, i believe it's a good, it's a good move and it's intended to create an good and that our results for purposes of making sure that we reduce that effectively and when we're creating an environment. but i think it, it has to be done in a systematic on strategic way in that it doesn't end up creating a crisis even before we try to solve the one that of retina. and that, that's what i believe. yes. and nigeria is a huge oil producer and it's vice president has said that no one in the world has been able to industrialize, using renewable energies. yet, does he at a point? no, it's a point to going to be, you know, in endurance. the truth is, the kind of renewable energy that really enjoy africa isn't like more than 2

percent of which is under. if you rightly we can really developed countries, especially not rica, isn't oil and gas. it is true option control because he is what i believe. i would tell you there is no country that's been able to develop themselves without electricity on the machine to a ram. in other words, don't have to use them like nowadays, i'll tell you the truth. i'm shocked. i can going down untruth which, you know, publics obviously go on night there when i use electric vehicles on low enough from one diesel vehicles and the truth and honesty. the other side you see if i was using to ellen musk the other day when you sing, when we started using these diesel, i'm better off the steam engine slow, fine. and the truth is, well, we're going the diesel. the oil and gas is stuck looking funny to us. you can

imagine if you came across the steam engine today, i'll that might make you feel the same way. this is going to end. so to me, i believe that is a lot of the past. the truth is you can develop well and just very much in a very effective and that is good. and now without help and financing from devout nations, how will african countries able to build out their renewable energy infrastructure and how much costly or is it to build that infrastructure versus that for traditional fossil fuel? this is one area i want to be honest with you. the reason why africa we will. yeah right now is because of the financing, have you been receiving? wanna tell you what? i'll give you an example. if my country, for instance, again, we offer maybe the highest assuming dempsey or you're going to refine in africa. so

we keep on getting these financing in terms of loans that we can even call them grant. and will these financing does to us, is the government's stocks for us, and i'm gonna be the money. but when the taxes are, is that means or purchasing bar is reduced inflation skyrocket. and these ends up making us band us, or as strong as you really there are a few more than 12 countries, again, which are not dependent on in external you've decided, let's journal entry with water. it doesn't matter. you don't the kind of steps that you'll make once you development, but that small one might us rather than you know, digging our mothers saying in our language classes, if you find yourself in our home, just stop thinking. so the truth is we have to sit down and ask ourselves how long or how do we utilize whatever we hug and further develop?

what we think we can rather than, you know, think that external financing is de one that is gonna help us build infrastructures that will help you g, like the renewable energy. we have to start somewhere and keep developing and give develop you know, you are, you noticed it is no, there it is. was, you know, that happened in a day in all i think there are lessons you are learning from other countries that really proves if you wanted you to have effectively and use smart strategies, you know, create value across you value chin is teen to a lot. i'm not right now. i believe it's the step even kenya, shelby speaking, we actually are obligated to work on them. thank you so much for coming on. collins kennedy e s g and stand ability advocate at sustainable square glenda. i'm here with

e s. d programs may be well intentioned, but they are having a significant impact on countries in many places. so it's just a bad. how long is it not a lot? well have my after the break. ah ah, what do you when the dealers to let them with it but almost done with a with

oh, a little us can to move us to do surgery, somebody might if you chill down version. no. go for them to push on a screw sister. so stuff varies with a no idea to a and the with a medicine in the course when they put a block it is it a voicemail, but i am still unable to come by yet?

exclusions. no, i say yes, name way at the suggestion is up with ah ah

yes. now i need you to play a group. kim's in a book that probably the national shaquille radiates below. showcase is under nathaniel. so he's going to the boys w boy. ah, ah, a in my chair at assess, laura doesn't want that extra mom, but i know it's a program that y'all in 2022. the italian government approved a package of military

a to ukraine coordination with nato to help ukrainians defend themselves and fight back about 150000000 euros. well, i make a week, or even i told me, bombs are hearing all the same nato and the you with the one that people will die just for make money. the one that i've done, yes. unless you got few on it or if you're gone through, you are complete. i mean, there's water damage with on figured i won't put them in as we'll talk more sir me, my show a tool or a for orfa, zachary la lesser opinion polls show that over 70 percent of italians are against military support for ukraine demo. allowed to can confront with the day after you thought don't a letter was yet

a skid out and go home and do not. she then did the daily death. wonderful. i was just a little boy hello today because he has been a fool because we're not returning fund fee to the layout. ah, welcome back to the cost of everything. where today we are talking about the cost of iasd policies around the world. while the goal of yes g movement might have had good intentions, it has now evolved into a marketing mouthpiece littered with hypocrisy. the costs of implementing as the principles are significant. so for most businesses is more beneficial to simply create false impressions about having incorporated su metrics into the business model. this is otherwise known as e s g color washing. when companies claim to promote sustainability goals, social progress, equality, and diversity. while in reality,

they are merely sugar cody, the status quo, in order to win over consumers and investors who want to support su principals. now to understand how this game is being played, you have to understand that the u. s. capital markets are dominated by passive investment funds, like black rock state street and others. these funds on, on their clients behalf about this of each s and p $500.00 member. that's quite a significant chunk of company stock. now imagine if you are one of these companies, you have to rely on these funds in order to stay afloat as they are your core shareholders that you have to make happy. and since the trend is now e s g, these funds now all require their holdings to be e s g compliance and be active participants in social change in order to get their investments. so as a company, you really have no choice but to adapt. and as we, as to the fund managers wishes, if you want to be included in his portfolio,

this kind of top down enforcement creates an environment filled with hypocrisy as now. e s d becomes just a basic requirement on a checklist, not a movement. that means anything for more or less bring in danielle gross, who is the director of the center for european policy studies in brussels to help us break it down. daniel, do you think this e s t trend is a short term fat, or do you actually think it is here to stay? here? it's something vicious here to stay because it corresponds to deep beliefs of many investors. that's more in europe in the united states. but there's a bottom up demand for e s g products and financial institutions, they deliver it. and therefore it's going to stay around for quite some time. and her company speak out on social issues. if you're a business that just makes widgets,

should you be forced to take us down on anything, environmental or social, or is it enough to just produce good quality widget and give people good job with good wages? why can't companies just stand their lane anymore? i think most company would like to stay in their lane and just use their products. and i think for many of them that is actually possible over their fuel, which are more exposed perhaps in the energy sector. companies which have saw thing from a dubious countries, countries where human rights are period respected. and i think these companies have to make an effort to show that then not looking only a profits, but also in take, take into account some of their values, which also the customers think are able desi, s t, unless they actually make

a difference. our company is really beholden now to a higher standard or does the entire system still lack proper checks, verification and accountability? yes, she is not really mature thing. granted. stop it. it's about the big companies. where anyway, going along these lines. companies which anyway, wanted to follow the ears chica area. but now it's becoming more serious become more serious because people are actually checking what companies are doing. and more and more, investors have discovered an interest in g type investing. and therefore, i think it will have an impact going forward. although so far the impact might be limited with one exception. i think they already have been some the impact on the

oil and gas industry. we had last exploration because of history, then we would otherwise have had and now you mentioned the possibility of the fall of the oil and gas industry. do you think these kinds of social pushes could change what companies and products are marketed and become successful? yes, there is one here. yeah. where you might be somewhat counterproductive, even in the sense that if the company is in the breast, at least spend less on oil and gas exploration. and even less than coal exploration that has to conflict grandpa's of all countries, which do not care about is g country with poor human right. i might actually then increase their own expenditure and investment on exploration,

and therefore become major producer. and also lack of investment by rest of the way companies would mean that they will be somewhat less oil available on the market. and therefore they will be somewhat higher prices for gas or oil and energy in general. and then of course, it's the poorest the strongest. well, there are some tension there between the ecology and the social side. and now do you see s a investments and it's ripple effects almost benefiting the wealthy and being detrimental in creating a larger wealth? got? no, i don't think the investment would have an impact. it might have marginally affected energy prices and therefore might have had a negative impact on on the distribution of income. but i don't think this is large enough compared to the bigger trends,

which we have seen in the, in the u. s. for example, over the last 20 years. but you can see that over the last 2 years, actually since corporate income inequality has been somewhat reduced, and therefore, i think we can look critically at e s g. but these larger faucets, especially post post programs are much more important. i was striving for equality and workplace diversity are great in principle. is there such a thing as too much woke notice in the workplace today, where millennials are placing too much values in these qualities and that's harming the overall workforce med, i'm likely to become an overall for the, for the workforce. and his productivity might of course, be 2 instances where the bulk never goes too far. but we did at the very

beginning and many research, i find that at somewhat more diverse decision making make and this is better. and since you have seen that the world is full of very unexpected chops, to have a more diverse decision making actually good while you will make mistakes here and there. but on average, 2 or more diverse. trevor, your better bad for a more dangerous world. and that overall, it's a good thing our oil and gas company specifically being helped or harmed by the s g movement. oil companies in the short term, had somewhat more difficult financing conditions and that the time them. but now the situation is very different because the prices are so much higher and also people realize that we need some energy. and

even if it's not cold, then we have gas which is much greater than coal. and therefore, i think companies which are the gaps business actually for the time being has nothing to fear from yesterday. and now our e s. t investments being directed into oil and gas companies simply as a desire to boost the bottom line return for funds. or how are these principles aligning with that of traditional oil and gas companies. there's of course of all at more emphasis on the way the oil or the gas being produced. because even there, there are ways to have more or less emissions. and more importantly, for gas, it is now clear that much better to use gas than coal. and therefore, to some extent is t can no playing that at least it is less than the alternative.

that's already one step forward. daniel growth. thank you so much for being here. now on this show, each week we talk about winners and losers. today i'm focusing on the losers. the losers are the consumers who actually care. there are many people who really sincerely care about the planet about advancing social causes. but when all that gets twisted into a meaningless marketing phrase, s g investing becomes something that does more harm than good. it becomes the opposite of solving problems and instead just sugar coats the problem by re packaging it. as famously depicted in h b o silicon valley, every company wants to make the world a better place, which then just becomes a meaningless catch phrase. today's e s d effort is like giving week grass to a cancer patient. there are misaligned incentives and the industry is just filled

with the policy every which way. the public persona is that of the cigarette industry in the 1970s, which externally boasted about caring for their customers. * were simultaneously killing them. so in the end, what started out as truth becomes a last message, as companies try to capitalize on the hot new trend. the question is, will the real cost of e s p b in the countries and people? it's a surprise while doing nothing to save a planet claim to care about. thanks for watching. i'm 50 i and i'll see you next time as we continue to break down the cost of everything. ah ah

. the for the business and you will clean the rugby daily. not as soon as you made it comes, graham. we just got to really just touch up quickly and see what your options for most of the different sit in full, a chat with you thrown with them probably. and you're still there with you. i wish ruth, you're here very sick. if you brought in that the studies of waste coming off on ok which which and it was just up to just a moment because i knew it was useful code and you don't know which i know for the don't know if i should do given me other than that,

we're going to go to the 1st opinion for us is come up, then no money, then no money, a money, a money a month with

a loan, assuming anything, but they should be deal law exposure to your real honest and in our talk about what if you need to project with deal it's your vehicle can be a good show to somebody to sort of it. so lucian school, a little bit of them was the money's been done love for school, which was to stay on

there that would limit ah ah, the b b. c illustrates a report on russian strike claim. ukraine with an image of a building destroyed by the ukrainian army of correspondents investigate the site of the incident. i'm standing right next to this building right now. it's behind me . and i know for a fact that it was this score of yours barbaric antibiotic artillery shelling of people civilians in the next quite ukraine and not russia making milestone. not how china describe the upcoming summit between beijing and go state as washington warrants, middle eastern countries, they.