[000:00:00;00] i have you heard a v s t, it stands 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 launch the countries 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 gonna 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 of 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 bring for the garbage collection, no one care though much garbage, you getting those will be home. you have to pay for the garbage and it's been suggested that young all be the same, but on that bridge is never just so outset, when it comes to climate change. yes, we might be a meeting less than 2 percent discount on images. you know, that are being emitted globally by the fact remains. when these got us for stuck eating us, i forgot the most effort to continue to i think there is no time to ask how much she wore. you are, you know, how much you,

your percentage is to the conclusion of all these clemson defect. it's all about are linked together underlying visiting words. if we start asking yourself that richard, i have seen him in to you only one continental title. these things was more whispered, machine was omission and no andre. 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 fresh to face. if you really want things to be met on the of look the other way and say we off rock is responsible business practices are responsible in the social

effective practices. so the truth is we just done stand up one day until you're not finding them anymore. you know, it has to be a gradual process was if we do that, then we start treating another problem even before we solve the other problem i from where i stand, even locally a, you know, financial institutions, the, are financial institutions and chair, say a you guys will find you if you are doing these kind of activities, you have to say to these other. so personally, i believe it's a good, it's a good move and it's intended to create an good done that our results for purposes of making sure that we reduce that effect 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 the 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 the other point? no, it's a point to con debate, you know, in endurance, it, rubies, the kind of renewable energy that really enjoy africa isn't like more than 2 percent of which is under. if you lastly, we can really developed countries, especially not rica isn't oil and gas is true option control because he is what i believe i would tell you there is no country that you want to develop themselves about electricity, not all on the machine to ram in other words, don't have to use them less nowadays. i'll tell you the truth. i'm shocked. like i'm going down untruth each. you know, publics obviously go night there when i use electric vehicles are low enough from

one diesel vehicles. and the truth is and understood the other side yes, yes. i was using to ellen mosque the other day when you were saying when we started using these diesel and better off the steam engines look fine. and the truth is where we are going. the diesel, the oil and gas to stop 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 of those of the past, the truth is you can develop well and just very much in a very 50 and that is and, and now without help and financing from developed 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 honor l. u, what? i'll give you an example in the country, for instance, again, we offer maybe the highest assuming dempsey or you can never find enough ago. so we keep on getting these financing in terms of loans that we can even call them grant . these financing does to us, is the government's stocks for us. it doesn't come with the money. but when the taxes are, is that means of us using baris reduced inflation, no skyrocket. and these ends up making us build us, or as strong as you really. there are a few more than 12 countries, again, which are not dependent on in external young, decidedly astronomy entry with it doesn't matter. you own the kind of steps that you'll make once you development,

but that small one might us rather than digging our mothers saying no language classes. if you find yourself in a home, just stop eating. so the truth is we have to sit down and ask ourselves how long or how do we utilize the table? we have 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 do like the renewable energy. we have to start somewhere and keep developing and give develop. you know, you are, you noticed it is not, there it is. was in that happening again. you know, i think there are lessons you are learning from other countries that really proves if you wanted you would, you have effectively and use might strategies, you know,

create value across you value chin is teen to a lot. right now i believe it's the step even. can you still be staking? we actually are obligated to work on them and thank you so much for coming on. collins kennedy e s g and state ability advocate at sustainable square glenda via with e s t. 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 more after the break with a. ready course she spencer with forced um, national leader, which was actually due to

a controller like going to do or no. but who do a medical with national jump on a prescriptive copier from wanted

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just don't know if he has to fill out his name because the applicant, an engagement, it was the trail. when so many find themselves worlds apart, we choose to look for common ground. when you, when we la. yeah, the list to let them with a, with a

with know, both of them used to push it up with a no, i did a good way with the course when you put a block or is it a voicemail but i am still able to come by at a school, i say, yes, lynn way,

at the suggestion is up with a welcome back to the cost of everything. where today we are talking about the cost of the policies around the world. while the goal of the s 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. d color washing. when companies claim to promote sustainability goals, social progress, equality, and diversity. while in reality,

they are merely sugar coating 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 a fis 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 compliant 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 daniel grove, 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 invest. that's perhaps more in europe. then you have to date, 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 stay in their lane anymore? i think most company would like to stay in the 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 you say, dubious countries, countries where human rights 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 the values which also the customers think are able desi,

s t, unless they actually make a difference. our company 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. i think when it's bad, it's about the companies. where anyway, going along these lines. companies which anyway, wanted to follow the ears chica area. but now it's becoming more, sir. yes. because most here, yes, 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 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 contra productive, even in the sense that if the company is in the best of leads, spend less on oil and gas exploration. and even less than coal exploration that has to conflict ramp is, 1st 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 producers and also lack off investment. by the way, companies would mean that they will be somewhat less oil available on the market. and therefore, there 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 negative impact on on the distribution of income. but i don't think this is

large enough compared to the bigger trend 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. there might of course be 2 instances where the bulk never goes too far. but we did at the very beginning,

and many researchers find that at somewhat more diverse decision making make and this is better. and since we have seen that the world is full of very unexpected charles to have a more diverse decision making. good, well, 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 their short term, had somewhat more difficult financial 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 cleaner 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 company? they're sort 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 is much better to use gas than coal. and therefore, to some extent, it can claim that at least that 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 planets about advancing social causes. but when all that gets twisted into a meaningless marketing phrase, yes, 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 p effort is like giving week grass to a cancer patient. there are misaligned incentives and the industry is just filled

with hypocrisy every which way the public persona is that of the cigarette industry in the 1970s, which externally boasted about caring for their customers while 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 to care about. thanks for watching. i'm 50 i and i'll see you next time as we continue to break down the costs of everything. the ah!

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with them. you have yet to me. she go. she returns with up to luminous maritsa to handle most of his emotional specially to renew the lease is up to engine. you took a little of doing piecemeal. mm. so what we've got to do is identify the threats that we have. it's crazy, even foundation, let it be an arms race is on offense. very dramatic development. only personally and getting to resist. i don't see how that strategy will be successful, very difficult. time. time to sit down and talk with

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them through with businessman victor booth is handed over by washington. after more than a decade in american cars today. that's an exchange the u. s. the basketball stopped out in russia an e book making milestone for the multi polar well for the saudi crown, prince coast, china as president for a key summit. mid waning us influence in the middle east. we recall from react plus time magazine named ukraine's president valencia. this despite the previously warning that yes, all right, as of movement, as inspired a global ideology. this led to more terrorist attacks in the us and he's like