self up from russia, europe has haul, but assured it will be overly dependent on the united states. that dependency will be costly. ah, ah, have you heard of yesterday? 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 g 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 g 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 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 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. dick you buffy already did when you been for the garbage collection? no one cared. oh my god, you getting those will be home before 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 making less than 2 percent of these come when images, you know, that are being emitted globally by the fact remains. when these catastrophe stuck eating us, i forgot the most effect to contain. i think there is no time to ask how much

she wore. you are in a how much your your percentage is to the conclusion of all these clemency defect. it's all about calling together, undoing visiting words. if we start asking yourself that restaurant, i have seen an image to you only one going to win the title. these things we spoke machine was a mission and no longer a month. 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 the financing and how can they even develop the truth is it's challenging because that the kind of financing that a scepter is going for a very long time. but then no love to remember. there is a fresh 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 to these we just done, stand up one day until you're not finding them anymore. we know it has to be a gradual process because if we do that, then we start creating another problem even before we solve the problem. so i from where i stand, even locally a, you know, financial institutions, the, our financial institutions and just say, hey, you guys will find you. if you are doing these kind of activities, you have to switch to these other. so personally, i believe it's a good, it's a good move and it's intended to create an good and the 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 enjoys the true these the kind of numbered energy that really enjoy. adrica isn't like more than 2 percent of which is under. if you likely we can really developed countries, especially not rica, little doyle and gust is true. upson control because he is what i believe i would tell you, there is no country that's able to develop themselves, don't electricity model and the machine to ram. in other words, don't have to use them less nowadays. i'll tell you the truth. i'm shocked. i can going down untruth leech, you know, publics of his vehicle a 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, i'm better off the steam engine, so fine. and the truth is, well, we're going the diesel, the oil and gas, the stuff you can funny to see if 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 we can develop well and thus 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? and this is, this is one area i want to be honest with you. the reason why africa we, oh, well, yeah, right now it's because of the financing have been receiving. wanna tell you what, i'll give you an example. if my country are incentive, again, we offer maybe the highest assuming that see if you're going to be fine 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. it doesn't come with the money. but when the taxes are, is that means of which is involved is reduced inflation, no skyrocket. and these ends up making us been thus, or as strong as you really. there are a few more than 12 countries. i know which aren't more dependent on in external you've decided, let's run entry with water. 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, you know, there's the sing along with this is if you find yourself in a home, just stop eating. so the truth is we have to sit down and ask ourselves, well, how long or how do we utilize liberally hug and further develop? what do you think we can rather than, you know, think that external financing is de one that's gonna help us build infrastructures that will help as 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 no, there it is. was that happening again? you know, i think there are lessons you are learning from other countries that really pools. if you wanted your to harvey effectively and use smart strategies, you know,

create value across you while you jim skeen, joy. i'm not right now. i believe it's this step even can you tell he's taking we asked really appreciate it. thank you so much for coming on collins cannady, e s g and stain ability advocate at sustainable square glenda. you know, 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 gonna last? i'll have my after the break. ah, ah. ah,

a merger you pretty much look at. do you live muscles do california initial be one of them? not significant dealer post on zillow while diaz can use to put value a new day or 2. but you also as to where saddam results give you a what i see the student policies don't rule you. motivation says this a oh, when i was a disdain

becomes the advocate an engagement equals the trail. when so many find themselves will support. we choose to look for common ground. when you, when i, when you lift to lift a person to the, with a almost done with a, with a condition to move us to do a no go for them to push

a subscription with a no, i do to a live with the course doing it puts up a block it is it a voicemail, but i am still able to come here to school. she's new. i say yes. name way at the suggest is up with

lou. welcome back to the cost of everything. where today we are talking about the cost of e s t a policies around the world. while the goal of the sd movement, my have had good intentions. it has now evolved into a marketing mouthpiece, littered with hypocrisy. the costs of implementing e s. d. principals are significant, so for most businesses is more beneficial to simply create false impressions about having incorporated s t 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 of this, of each as some 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 cor 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 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 the beliefs of many investors. 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 widgets 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 their lane and just put us their, 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 are pretty respected. and i think these companies have to make an effort to show that then not 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 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, bath, 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 the can you must hear. 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 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 is one area where she 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 ramp is, 1st 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 producers and also lack of investment. by 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 gap? no, i don't think the investment will have that large of 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 do you 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 specially cost 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. miss, i'm likely to become an overall for the, for the workforce. and this 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, you're, you're better bad for a more dangerous world. and that overall, i would think 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 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? 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, it can claim that at least that is less than the alternative. that's already one step forward. daniel graham, 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, 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 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. i oh, into the teams helping bush under the self a knowing look oil for a

that i can see and funny gas prices stuff with on gas with does not seem finished with the tapes from the political want to. so you know, of this kind of even so social reform is going to continue on with it. it is good. prescriptive reason. oscar. she'll know shepherd got a

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a south with a new dock garza or you know, watch them for me at that a bull. upright beat on that is in the yeah. pulls guy from sheila kim's room. she thought that it says a yes my thought or change in the again, your fortune very up my be a lot about is more than just financial 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 united states. that dependency, we cost a victim with impunity with theresa, shirley much less because they get to school need to give you the got to the new year for if i teach the way, know i'm teaching that should go and you have to get a fairly broad you put the door for charisma wishing to achieve and when you moment for the woman was more more. i'm with mom, they're glad of giblin you. what they continued. i'm just, i did i use one or lower scholarly i'm or they were did some of studies that the carson brought. i used to wish i had finished. this is just those are 42. if you, i'm affectionate. when it comes to use it for you, hold in revolt,

a shirt and trim in there with a made an escalation of tension over the break away region. a high level prison, i thought for russian business when visibility returns home off the more than a decade and us property exchange for american off good, we'll play it griner and an import making while so for them multiple world us with saudi crown, prince coast time as president for peace summit i met with .