1 00:00:00,320 --> 00:00:01,840 Speaker 1: Together due to clans. 2 00:00:02,000 --> 00:00:05,560 Speaker 2: The government is softening rules that force listed companies to 3 00:00:05,800 --> 00:00:08,920 Speaker 2: disclose their climate risks. Now, the ardern era law forced 4 00:00:09,080 --> 00:00:11,440 Speaker 2: these forced these companies worth more than sixty million dollars 5 00:00:11,480 --> 00:00:14,200 Speaker 2: to report climate risks. That's now been changed to only 6 00:00:14,240 --> 00:00:17,160 Speaker 2: affect companies worth more than a billion dollars. Barry Coates 7 00:00:17,200 --> 00:00:19,280 Speaker 2: is the founder and the CEO of Mindful Money and 8 00:00:19,400 --> 00:00:22,680 Speaker 2: is not a fan of these changes. Hi, Barry, Hi, Ever, 9 00:00:22,840 --> 00:00:24,000 Speaker 2: what don't you like about this? 10 00:00:25,440 --> 00:00:29,120 Speaker 1: I don't like the way that in a way, we're 11 00:00:29,120 --> 00:00:33,440 Speaker 1: stepping backwards on what should be information that should be 12 00:00:33,520 --> 00:00:38,279 Speaker 1: disclosed by companies and also by managers of Kiwisaber and 13 00:00:38,360 --> 00:00:42,159 Speaker 1: other funds. We should be telling the investors, the public 14 00:00:42,360 --> 00:00:46,879 Speaker 1: stakeholders about what their climate impact is and what the 15 00:00:46,920 --> 00:00:52,839 Speaker 1: climate risk is of the companies and wide, because this 16 00:00:52,920 --> 00:00:57,160 Speaker 1: is valuable information not only about the climate and what 17 00:00:57,240 --> 00:01:01,320 Speaker 1: companies are doing, it's vital financial and information that climate 18 00:01:01,400 --> 00:01:04,680 Speaker 1: changes is a real cost. It's a real risk to companies, 19 00:01:04,720 --> 00:01:08,920 Speaker 1: whether it be physical impacts or transitory impacts, or regulatory 20 00:01:08,920 --> 00:01:13,000 Speaker 1: impacts or reputational impacts. It's been widely recognized that these 21 00:01:13,000 --> 00:01:15,000 Speaker 1: are these are kind of substantial risks. 22 00:01:15,280 --> 00:01:19,400 Speaker 2: Okay about it. Practically, if you're an investor and you're thinking, well, 23 00:01:19,400 --> 00:01:22,840 Speaker 2: I might buy some shares and Turners, what is what 24 00:01:22,880 --> 00:01:25,880 Speaker 2: about what they say about climate is going to make 25 00:01:25,880 --> 00:01:27,760 Speaker 2: you decide whether you put your money into Turners or not. 26 00:01:28,720 --> 00:01:33,200 Speaker 1: Well, if Turner's made produce lines are kind of at 27 00:01:33,400 --> 00:01:37,120 Speaker 1: risk of climate disruption and their supply chains are at 28 00:01:37,200 --> 00:01:40,960 Speaker 1: risk of climate disruption from adverse weather or events, which 29 00:01:41,160 --> 00:01:44,839 Speaker 1: of course they are, investors may decide that that their 30 00:01:44,880 --> 00:01:49,920 Speaker 1: particular kind of supply lines are at a higher risk 31 00:01:50,040 --> 00:01:52,320 Speaker 1: if they if they talk about that in their and 32 00:01:52,360 --> 00:01:58,200 Speaker 1: their climate reports. So it gives information to investors to say, well, actually, 33 00:01:58,280 --> 00:02:01,040 Speaker 1: I'm not sure about the climate risk of Turners. I'm 34 00:02:01,040 --> 00:02:02,440 Speaker 1: not sure that I want to invest. 35 00:02:02,800 --> 00:02:05,559 Speaker 2: Do you think people are actually making these It sounds 36 00:02:05,680 --> 00:02:08,240 Speaker 2: fair enough what you're saying, but it sounds like what 37 00:02:08,320 --> 00:02:10,280 Speaker 2: we're asking these people to do in order for an 38 00:02:10,280 --> 00:02:13,160 Speaker 2: investor to make that decision is just extreme, right. I mean, 39 00:02:13,200 --> 00:02:15,920 Speaker 2: Turners itself said that that their first report costs them 40 00:02:15,960 --> 00:02:18,519 Speaker 2: a million dollars. It feels a little over the top, 41 00:02:18,560 --> 00:02:20,160 Speaker 2: doesn't it. 42 00:02:20,160 --> 00:02:23,720 Speaker 1: It does? It does, And you know what we've heard. 43 00:02:24,160 --> 00:02:26,640 Speaker 1: I hadn't heard that figure from Turners, it sounds like 44 00:02:26,720 --> 00:02:30,519 Speaker 1: a lot most other companies, but even. 45 00:02:30,360 --> 00:02:32,959 Speaker 2: Other companies, even other companies, as reported by r n 46 00:02:33,040 --> 00:02:35,120 Speaker 2: Z were spending up to two hundred thousand dollars on it. 47 00:02:35,360 --> 00:02:38,600 Speaker 1: Yeah yeah, but Heather, you know, the thing is you 48 00:02:39,000 --> 00:02:41,240 Speaker 1: put the system in place in order to bounder to 49 00:02:41,320 --> 00:02:45,560 Speaker 1: report that requires initial investment. Every year thereafter you're updating 50 00:02:45,720 --> 00:02:48,880 Speaker 1: the information that goes into those reports, and the first 51 00:02:48,919 --> 00:02:52,280 Speaker 1: year you're going to have higher costs. After that you're 52 00:02:52,280 --> 00:02:55,840 Speaker 1: going to have a far reduced a burden of reporting. 53 00:02:55,880 --> 00:02:59,639 Speaker 1: And that's been shown already from the second year reporting. 54 00:02:59,760 --> 00:03:02,519 Speaker 1: So so you know, this is the time rather than 55 00:03:03,040 --> 00:03:06,359 Speaker 1: kind of throwing out the regulations, we should be reaping 56 00:03:06,360 --> 00:03:08,799 Speaker 1: the benefits from from the investments that already made. 57 00:03:08,919 --> 00:03:12,280 Speaker 2: Rather than say, what's the risk Barryer of us of 58 00:03:12,400 --> 00:03:15,520 Speaker 2: us stepping back from this, I think two risks. 59 00:03:15,639 --> 00:03:20,480 Speaker 1: One is that investors and customers and people who who 60 00:03:20,520 --> 00:03:24,000 Speaker 1: companies do business with or investors do business with, they 61 00:03:24,000 --> 00:03:27,560 Speaker 1: don't have the right information that is relevant to the 62 00:03:27,919 --> 00:03:30,799 Speaker 1: decisions they're making. And the second thing is an investment 63 00:03:30,880 --> 00:03:34,040 Speaker 1: risk that if you're investing in a company, if you're 64 00:03:34,080 --> 00:03:36,200 Speaker 1: investing in a fund, you're going to want to know 65 00:03:36,240 --> 00:03:38,960 Speaker 1: about it. If you're investing in the Kivsaver Fund, do 66 00:03:39,040 --> 00:03:42,000 Speaker 1: you want to know whether that company is that keV 67 00:03:42,120 --> 00:03:46,000 Speaker 1: Saver Fund is bearing a high climate risk from their portfolio? 68 00:03:46,040 --> 00:03:46,760 Speaker 1: I would want to know. 69 00:03:46,960 --> 00:03:49,200 Speaker 2: Can't you just turn up with the annual share can't 70 00:03:49,240 --> 00:03:51,200 Speaker 2: you turn up to the annual shareholders meeting and ask 71 00:03:51,240 --> 00:03:51,680 Speaker 2: the question? 72 00:03:52,640 --> 00:03:55,560 Speaker 1: Unless you've got a regulated system of reporting, what you're 73 00:03:55,560 --> 00:03:57,760 Speaker 1: probably going to be told And every time you do 74 00:03:57,840 --> 00:04:00,240 Speaker 1: it in an AGM is a different story because it's 75 00:04:00,320 --> 00:04:03,840 Speaker 1: not packed up by a properly regulated reporting system. And 76 00:04:03,880 --> 00:04:07,640 Speaker 1: that's what this system gives us. It gives us a 77 00:04:07,800 --> 00:04:10,800 Speaker 1: level playing field for everyone to report on the same basis, 78 00:04:11,200 --> 00:04:13,720 Speaker 1: and that's really important to be able to compare across 79 00:04:13,760 --> 00:04:14,480 Speaker 1: these companies. 80 00:04:14,760 --> 00:04:16,440 Speaker 2: All Right, Barry, thank you very much for your time. 81 00:04:16,480 --> 00:04:18,760 Speaker 2: Barry Coates, Mindful Money, founder and CEO. 82 00:04:19,560 --> 00:04:22,720 Speaker 1: For more from Heather Duplessy Allen Drive, listen live to 83 00:04:22,800 --> 00:04:25,839 Speaker 1: news Talks. It'd be from four pm weekdays, or follow 84 00:04:25,880 --> 00:04:27,599 Speaker 1: the podcast on iHeartRadio.