one to many find themselves worlds apart. we choose to look for common ground. i, ah, 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. g 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 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 and 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 government 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 through the garbage collection. no one care though much garbage, you getting over the home, you have to pay for the garbage and he spends a narrative that young all be the same, but on that bridge is never. so outset, when it comes to climate change, yes, we might be a meeting less than 2 percent of these come when they mentioned, you know, that are being emitted globally about the fact remains. when these cut us for stacking 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 clemency direct. it's all about adding together and doing these are that in words, if we start asking yourself that restrict i it same as a means here, only one continent to fight all these things, but we spoke with missions in 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 did these african nations do without this financing, and how can they even develop the truth is it's challenging, because that's 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 v of look the other way and say we of practice, 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 then before we solve the problem. so i from what i stand, even locally a, you know, financial institutions, they are financial institutions. and you're saying a, you guys will, of what i found you. if you are doing the scale of activities, you have to switch to these other. so, personally, i believe it's a good, it's a good move and that it's intended to create an good and better results for purposes of making sure that we reduce that effect to emily 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 the other point? no, it's a point to going to be, you know, in endurance. the truth is the kind of numbered 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 monica boylen gust. just true option control. because he is what i believe. i'll tell you, there is no country that's been able to develop themselves, don't electricity, not all on the machine to around. in other words, don't have to use them less nowadays. i'll tell you the truth. i'm shocked and i'm going down untruth leech, you know, public service vehicle night there when i use electric vehicles on the low one from

one diesel vehicles and the truth is and understood the other side. yes, yes. i was listening to ellen musk the other day when you were saying when we started using these diesel and better off the steam engine, so fine. and the truth is where we're going. the diesel, the oil and gas is still looking funny to us. you can imagine if you came across the steam engine today, i'd like to make you feel the same way. this is going to end. so to me, i believe that is of the past. the truth is, you can develop without a will and thus very much in a very effective and that is it. 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 honor tell you what? i'll give you an example in the country. for instance, again, we offer maybe the highest assuming that see if you can ever find in africa. so we keep on getting these financing in terms of loans that we can even call them grant, and will these financing dust last is the government's stocks for us, and i'm gonna be the money. but when the taxes are, is that means of us using bar is reduced inflation now skyrocket. and these ends up making us bend us or as strong as you really. there are a few more than 12 countries, a known girl, which are not dependent on any external young descended let's journal entry with.

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 digging our mothers saying no language classes. if you find yourself in our home, just dog. but the truth is we have to sit down and ask ourselves how long or how do we utilize to bowie hug and further develop? what we think we can rather than, you know, think and external financing is de one that is gonna help us build infrastructures that will help us. you g, like the renewable energy. we have to start somewhere and keep developing them, develop, you know, you are, you noticed it is no, there it is. was that happening in all? i think there are lessons you are learning from other countries that really proves

if you manage what you have effectively and use might strategies you know, create value across you while you, jim his teen joy. i'm not right now. i believe it's the step even kenya shall be staking we. actually i was a flexion finance. thank you so much for coming on. collins cannot e s g and stand ability advocate as sustainable square blunder of yeah, with he asked you programs, maybe, well intentioned, but they are having a significant impact on countries and many places. so it's just a bad. how long has i got a lot? well have my after the break. ah, ah, ah,

nice to come to russian state. little. never. i've studied us on the most. i'm skiing with 55 when. okay, so 9 is 2000 speedy. when else with we will van in the european union, the kremlin, the media machine. the state aren't russia today, and ortiz spoke. they're given our video agency roughly. all right, i'm to on you to a quick question. did you say it was with oh, is your media a reflection of reality?

in the world transformed? what will make you feel safe? ah, isolation, whole community? are you going the right way or are you being direct? what is true? what is faith? in the world corrupted, you need to descend a join us in the depths or remain in the shallows. a new deal. lowest ones are deal with what you need to

have your project. whatever with the, with the would you let your vehicle can somebody with a motion school? no, but other was the money was done. love it. it's william with either woman by joining washington's ukraine prophecy war against russia. europe is made,

an irreversible choice, is consigned itself to being a minor regional power in a multi polar world. cutting itself up from russia. europe has all but assured it will be overly dependent on the said that dependency will be costly the 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 and force me crazy 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? is it something vicious here to stay because it corresponds to the beliefs of many investments, perhaps more in europe in the united states. but as 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 peak 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? which is that gives people good jobs 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 so saying from you say, dubious countries, countries where human rights period respected. and i think these companies have to make an effort to show that not looking only a profits, but also in take, take into account some of the values which also the customers think are important.

desi, sd invest. 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, g is not really mature. i think granted stop it. it started with 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 impact on the oil

and gas industry. we had last exploration because it's cheaper than 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's one area where you might be somewhat contract to feed them 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 consequences. first of all, countries which do not care about is g countries with poor human right. i might actually then increase their own expenditure and investment on exploration

and therefore become major producer and also lack off investment. by the way, companies put 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 a? well scott, no, i don't think the investment will 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 there's,

there's 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 the larger faucets, especially cost costco grid, 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 . miss, i'm likely to become an overall for the, for the workforce and his productivity. there might be 2 instances where the bulk never goes too far. but we are still at the very beginning and many

research, i 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 is actually good. well, you will make mistakes here and there. but on average, 2 or more diverse prep for your better group 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 financial conditions and that to 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 i have 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 she can know,

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, e 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 p efforts 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 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 cost of everything the ah, will you with

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