WEBVTT - Investing in the Era of Climate Change

0:00:00.160 --> 0:00:04.160
<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Bloomberg

0:00:04.240 --> 0:00:08.039
<v Speaker 1>Quick Takes Tim Stinovic on Bloomberg Radio. You're listening and

0:00:08.119 --> 0:00:10.440
<v Speaker 1>watching Bloomberg Business Week. We're getting ready to wrap up

0:00:10.480 --> 0:00:12.799
<v Speaker 1>our show, but we've got a great last guest that

0:00:12.840 --> 0:00:14.680
<v Speaker 1>we wanted to get to and just to kind of

0:00:14.720 --> 0:00:17.119
<v Speaker 1>set it up. Earlier this year, McKenzie pegged the price

0:00:17.160 --> 0:00:20.599
<v Speaker 1>tag of a livable climate at nine point two trillion

0:00:20.640 --> 0:00:23.720
<v Speaker 1>dollars a year. So that's the level of investment needed

0:00:23.760 --> 0:00:26.520
<v Speaker 1>to reach the international climate goals of net zero emissions

0:00:26.520 --> 0:00:28.880
<v Speaker 1>by twenty fifty. And our next guest him as a

0:00:28.880 --> 0:00:31.680
<v Speaker 1>guide to the risks and opportunities for investors as a

0:00:31.720 --> 0:00:34.640
<v Speaker 1>worldfaces climate change. Very pleased to have with us this afternoon.

0:00:34.680 --> 0:00:38.560
<v Speaker 1>Bruce Usher. He's professor of Professional Practice at Columbia Business School.

0:00:38.840 --> 0:00:41.400
<v Speaker 1>He's also the author of his book Investing in the

0:00:41.479 --> 0:00:44.680
<v Speaker 1>Era of Climate Change. And I should note full disclosure

0:00:44.720 --> 0:00:47.000
<v Speaker 1>he was my professor when I took a course from

0:00:47.080 --> 0:00:52.360
<v Speaker 1>him all the way back in what Maybe Business Right. Yeah,

0:00:52.360 --> 0:00:54.360
<v Speaker 1>this was a cool class investing for social ventures. We

0:00:54.400 --> 0:00:56.760
<v Speaker 1>got to like essentially serve as consultants for these startups

0:00:56.760 --> 0:00:59.000
<v Speaker 1>and decide whether or not they would be awarded money

0:00:59.120 --> 0:01:01.120
<v Speaker 1>pressor Usher. Great to have you with us this afternoon.

0:01:01.120 --> 0:01:03.760
<v Speaker 1>How are you? Thank you for having on the show

0:01:03.800 --> 0:01:06.840
<v Speaker 1>and nice chat again. Yeah, it's good. It's good to

0:01:06.880 --> 0:01:09.080
<v Speaker 1>have you with us. Hey, help us understand in a

0:01:09.160 --> 0:01:12.280
<v Speaker 1>time where we're seeing global upheaval, the worst energy crisis

0:01:12.280 --> 0:01:15.119
<v Speaker 1>that we've actually seen in decades, uh, and investors are

0:01:15.120 --> 0:01:18.000
<v Speaker 1>fighting for returns anywhere. How should they be thinking about

0:01:18.040 --> 0:01:21.200
<v Speaker 1>investing when it comes to climate change. Well, there's no

0:01:21.280 --> 0:01:23.600
<v Speaker 1>shortage of volatility in the markets these days, but they

0:01:23.600 --> 0:01:26.160
<v Speaker 1>should think about climate change from a longer term perspective.

0:01:26.200 --> 0:01:28.840
<v Speaker 1>If they're looking for stable trends, it's going to be

0:01:28.880 --> 0:01:31.720
<v Speaker 1>here with us for years, if not decades, and affecting

0:01:32.360 --> 0:01:35.720
<v Speaker 1>businesses for decades to come, and therefore affecting investors investor

0:01:35.720 --> 0:01:39.000
<v Speaker 1>returns for years to come. Climate change is the macro

0:01:39.160 --> 0:01:41.800
<v Speaker 1>trend of the next several decades. There's just no question

0:01:41.800 --> 0:01:44.560
<v Speaker 1>about that. So okay, and I do feel like it's

0:01:44.560 --> 0:01:47.280
<v Speaker 1>going through a reckoning. Tim and I talked about E S. G. Right.

0:01:47.280 --> 0:01:51.000
<v Speaker 1>We've seen so much money, Professor Usher go into this space,

0:01:51.040 --> 0:01:52.800
<v Speaker 1>but we're getting to a point where people really want

0:01:52.800 --> 0:01:55.640
<v Speaker 1>to understand what they're investing in, and that that money

0:01:55.840 --> 0:01:59.000
<v Speaker 1>ultimately makes a difference when it comes to E s

0:01:59.040 --> 0:02:03.800
<v Speaker 1>G metrics, How do we make sure that investments that

0:02:03.840 --> 0:02:06.480
<v Speaker 1>we make really are making a difference and are good

0:02:06.520 --> 0:02:10.440
<v Speaker 1>for the climate. Well, there's plenty of discourse or any

0:02:10.560 --> 0:02:12.120
<v Speaker 1>s G these days, no question about that. And the

0:02:12.200 --> 0:02:15.200
<v Speaker 1>challenge the B s G is the concept is very simple, right.

0:02:15.280 --> 0:02:18.160
<v Speaker 1>It's simply saying that when you make an investment, you

0:02:18.160 --> 0:02:20.640
<v Speaker 1>would normally look at financial metrics, and manage metrics and

0:02:20.639 --> 0:02:24.240
<v Speaker 1>competition all these other metrics. In addition, add to that

0:02:24.360 --> 0:02:27.880
<v Speaker 1>analysis the environmental or social factors that are material to

0:02:27.919 --> 0:02:31.000
<v Speaker 1>the company you're considering. If you're buying into real estate

0:02:31.000 --> 0:02:32.600
<v Speaker 1>on the coast, you might want to think about floods

0:02:32.639 --> 0:02:34.440
<v Speaker 1>and storms in the life, right. So that's the s

0:02:34.480 --> 0:02:36.880
<v Speaker 1>G analysis. It's very important for investment perspective. It makes

0:02:37.400 --> 0:02:41.040
<v Speaker 1>makes for better investment decisions. It doesn't have a tremendous

0:02:41.120 --> 0:02:44.480
<v Speaker 1>impact though, on addressing climate change, because what you're really

0:02:44.520 --> 0:02:46.880
<v Speaker 1>doing is investing in companies that are doing better for

0:02:47.320 --> 0:02:52.079
<v Speaker 1>managing climate risk. But those decisions don't necessarily reduce emissions

0:02:52.080 --> 0:02:54.639
<v Speaker 1>as gases. So that's what you're focused on. It I

0:02:54.639 --> 0:02:57.320
<v Speaker 1>think it's prettymportant to be focused on it. There's really

0:02:57.360 --> 0:03:00.920
<v Speaker 1>two strategies to consider. One is a thematic act investing strategy.

0:03:01.000 --> 0:03:04.400
<v Speaker 1>Pick a theme or sector that contributes to addressing climate ching,

0:03:04.480 --> 0:03:10.000
<v Speaker 1>say renew energy, solid wind, or electric vehicles, and put

0:03:10.040 --> 0:03:13.680
<v Speaker 1>some investments into that sector in a smart way to

0:03:13.960 --> 0:03:18.359
<v Speaker 1>maximize risks to adjusted returns and also contribute to reducing

0:03:18.440 --> 0:03:22.400
<v Speaker 1>emissions of greenhouse gasses. The other strategy that's unique to

0:03:23.040 --> 0:03:25.760
<v Speaker 1>really high net worth altra high net worth individuals is

0:03:25.800 --> 0:03:29.160
<v Speaker 1>take what's called impact first strategy. So here we're really

0:03:29.200 --> 0:03:33.040
<v Speaker 1>focused on climate change and invests with that lens in mind.

0:03:33.080 --> 0:03:36.720
<v Speaker 1>Now that means big, very long term investments and and

0:03:36.960 --> 0:03:40.440
<v Speaker 1>perhaps some additional risk, but some investors are willing to

0:03:40.480 --> 0:03:43.440
<v Speaker 1>go as well. What I find a little puzzling in

0:03:43.800 --> 0:03:48.160
<v Speaker 1>this day and age, in you know, October, is the

0:03:48.200 --> 0:03:54.360
<v Speaker 1>market has rewarded this year companies that are the antithesis

0:03:54.440 --> 0:03:58.040
<v Speaker 1>of these climate friendly companies. You could argue, right um

0:03:58.040 --> 0:03:59.720
<v Speaker 1>oil and gas companies. And when you look at the

0:03:59.720 --> 0:04:02.080
<v Speaker 1>best forming stock in the SMP five D this year,

0:04:02.360 --> 0:04:09.640
<v Speaker 1>Occidental patrolling about on number for the first, third, fourth, fifth, six, seventh, eighth, ninth,

0:04:10.000 --> 0:04:12.880
<v Speaker 1>and tenth companies that are the only that they are

0:04:12.920 --> 0:04:15.120
<v Speaker 1>the best performing in the SP five hundred. They are

0:04:15.160 --> 0:04:19.320
<v Speaker 1>all oil gas natural resources companies. So what's an investor

0:04:19.360 --> 0:04:22.600
<v Speaker 1>to do in this environment so to days? But with

0:04:22.640 --> 0:04:24.680
<v Speaker 1>the oil and gas, First of all, they were that

0:04:24.720 --> 0:04:27.240
<v Speaker 1>was from very low price points a year ago, right,

0:04:27.279 --> 0:04:30.800
<v Speaker 1>So the multiples on those companies are still very well. Secondly,

0:04:31.520 --> 0:04:34.000
<v Speaker 1>many of those oil and gas companies are aware of

0:04:34.040 --> 0:04:36.680
<v Speaker 1>climate change and aware that their business models and how

0:04:36.680 --> 0:04:39.040
<v Speaker 1>they're going to change them. So Ocidental Petroleum as an example,

0:04:39.480 --> 0:04:42.520
<v Speaker 1>has invested heavily and direct their capture and some other

0:04:42.560 --> 0:04:45.960
<v Speaker 1>technologies to ideally reduce their emissions over time. So they're

0:04:46.000 --> 0:04:48.200
<v Speaker 1>they're also thinking long term. I'm not saying where their

0:04:48.200 --> 0:04:50.440
<v Speaker 1>business model is the right one. Actually, we don't have

0:04:50.480 --> 0:04:53.960
<v Speaker 1>much clarity on on the oil and gas UH strategies

0:04:53.920 --> 0:04:56.719
<v Speaker 1>around climate change yet, but it's not as if those

0:04:56.720 --> 0:04:59.360
<v Speaker 1>companies are ignoring the issual to at least the best

0:04:59.360 --> 0:05:02.599
<v Speaker 1>majority of the n take action on that. That being said,

0:05:03.200 --> 0:05:05.640
<v Speaker 1>you know, I said a few minutes ago, climate change

0:05:05.640 --> 0:05:08.039
<v Speaker 1>is a long term trend and lower seeing the markets

0:05:08.120 --> 0:05:10.760
<v Speaker 1>right now is short term volatilly right, oil gas prices

0:05:10.760 --> 0:05:13.920
<v Speaker 1>are up dramatically in the past year, and those stocks

0:05:13.920 --> 0:05:16.360
<v Speaker 1>are into well in the short term. But is there

0:05:16.400 --> 0:05:18.440
<v Speaker 1>going to be you know, it's interesting on a day

0:05:18.480 --> 0:05:20.600
<v Speaker 1>when we heard from Cathy Wood of our convest to

0:05:20.720 --> 0:05:24.440
<v Speaker 1>obviously stresses disruption innovation. You know, is there going to

0:05:24.560 --> 0:05:29.000
<v Speaker 1>be this uncomfortable pivot? Forgive me for using the p

0:05:29.160 --> 0:05:32.240
<v Speaker 1>word you have to drink, but is there going to

0:05:32.320 --> 0:05:36.240
<v Speaker 1>be an uncomfortable pivot at least in the public markets

0:05:36.640 --> 0:05:40.880
<v Speaker 1>as we do shift away from carbon based fuels, as

0:05:40.880 --> 0:05:44.159
<v Speaker 1>we move to alternative energy more e vs, because we

0:05:44.240 --> 0:05:46.920
<v Speaker 1>really are turning our backs on companies that have been

0:05:47.000 --> 0:05:50.760
<v Speaker 1>so much a part of our public markets in some ways,

0:05:50.800 --> 0:05:53.880
<v Speaker 1>and there will be new leaders in the market. So

0:05:53.920 --> 0:05:59.400
<v Speaker 1>will there be some dislocations, some discomfort as that happens. Absolutely. Look,

0:05:59.400 --> 0:06:02.000
<v Speaker 1>climate change is two words, right, the second words change,

0:06:02.080 --> 0:06:04.240
<v Speaker 1>and there's going to be environmental change, but there's also

0:06:04.240 --> 0:06:06.080
<v Speaker 1>going to be a lot of change in the in

0:06:05.880 --> 0:06:11.240
<v Speaker 1>in business as decarbonation takes place through the global economy.

0:06:11.360 --> 0:06:13.080
<v Speaker 1>There are going to be companies that are winners and

0:06:13.120 --> 0:06:15.200
<v Speaker 1>companies that are losers. There's just no question about that.

0:06:15.640 --> 0:06:18.600
<v Speaker 1>From an investment perspective, the key question, of course is

0:06:18.600 --> 0:06:20.760
<v Speaker 1>who's going to win is going to lose. And here

0:06:20.800 --> 0:06:26.159
<v Speaker 1>it gets a challenging because in some sectors, the disruptive

0:06:26.240 --> 0:06:29.320
<v Speaker 1>companies new technologies really have an advantage. I mean, just

0:06:29.360 --> 0:06:32.240
<v Speaker 1>look at the auto automotive sector and Tesla. It's completely

0:06:32.279 --> 0:06:34.440
<v Speaker 1>disrupted it and we so it happened to value us

0:06:34.480 --> 0:06:37.720
<v Speaker 1>both in Tesla and then competitors. Some other sectors are

0:06:37.760 --> 0:06:40.839
<v Speaker 1>the incumbents have big advantages. And sectors where there's a

0:06:40.839 --> 0:06:44.360
<v Speaker 1>lot of regulation or big balancies are required, for example,

0:06:44.440 --> 0:06:47.440
<v Speaker 1>utility sector. You know there are companies have tried to

0:06:47.480 --> 0:06:50.480
<v Speaker 1>disrupt utilies for the number of years. Now next Era

0:06:50.680 --> 0:06:53.000
<v Speaker 1>took a look what's going on, starting investing heavily, and

0:06:53.080 --> 0:06:57.360
<v Speaker 1>Renewables is now the largest owner of renewable energy astics

0:06:57.360 --> 0:07:00.360
<v Speaker 1>in the country and more importantly, is the most valuable

0:07:00.600 --> 0:07:03.040
<v Speaker 1>utility in the country today and when most valuable energy

0:07:03.040 --> 0:07:06.480
<v Speaker 1>comverst utility. So, you know, picking those winners and losers.

0:07:06.480 --> 0:07:08.720
<v Speaker 1>As this transition happened us the word pivot, I would

0:07:08.920 --> 0:07:11.920
<v Speaker 1>use the word transition. But this this change that's coming,

0:07:12.480 --> 0:07:15.160
<v Speaker 1>it's critical. How much do you watch It's funny when

0:07:15.120 --> 0:07:18.239
<v Speaker 1>Tim and I were at Milkin, was it in the spring?

0:07:19.040 --> 0:07:21.920
<v Speaker 1>You know, we spent so many of our conversations talking

0:07:21.920 --> 0:07:25.480
<v Speaker 1>about the private markets versus the public markets. How much

0:07:25.520 --> 0:07:27.520
<v Speaker 1>do you watch what's going on, especially when it comes

0:07:27.520 --> 0:07:31.280
<v Speaker 1>to disruption, innovation, that pivot that's happening as we think

0:07:31.320 --> 0:07:34.840
<v Speaker 1>about the climate. How much of what we really should

0:07:34.880 --> 0:07:36.840
<v Speaker 1>be keeping an eye on is where those investments are

0:07:36.840 --> 0:07:39.720
<v Speaker 1>going on in the private markets to give us an

0:07:39.720 --> 0:07:41.840
<v Speaker 1>idea of who will be ultimately the leaders in the

0:07:41.880 --> 0:07:45.600
<v Speaker 1>public markets in the years to come. Absolutely, the private

0:07:45.600 --> 0:07:47.400
<v Speaker 1>markets where a lot of the innovation occurs, as where

0:07:47.480 --> 0:07:51.360
<v Speaker 1>venture capital flows. That's where a lot of private capitalists

0:07:51.360 --> 0:07:54.240
<v Speaker 1>flowing from from mindor worth individuals. We should look at

0:07:54.240 --> 0:07:55.920
<v Speaker 1>what's going look at what Bill Gates and break your

0:07:56.000 --> 0:07:58.240
<v Speaker 1>energy ventures are investing, and look at what the number

0:07:58.240 --> 0:08:00.720
<v Speaker 1>of the DC fonds are putting into. Figure out called

0:08:00.720 --> 0:08:03.680
<v Speaker 1>climate tech and let's see, you know which which of

0:08:03.680 --> 0:08:06.000
<v Speaker 1>those become the winners in the very sectors. Sectors that

0:08:06.040 --> 0:08:09.520
<v Speaker 1>would focus on green hydrogen. Whole new sector could absolutely

0:08:09.520 --> 0:08:13.280
<v Speaker 1>revolutionize a lot of industries today direct or capture much risk,

0:08:13.320 --> 0:08:16.280
<v Speaker 1>you're much harder, but could revolutionize the way we address

0:08:16.360 --> 0:08:18.280
<v Speaker 1>climate change. And then there a whole lot of other

0:08:18.320 --> 0:08:23.240
<v Speaker 1>technologies around energy storage and transportation all early stage, not

0:08:23.360 --> 0:08:27.080
<v Speaker 1>competitive commercially yet with the incoment companies, but a lot

0:08:27.120 --> 0:08:29.920
<v Speaker 1>of opportunity and promises. So don't make fun of I

0:08:29.960 --> 0:08:32.160
<v Speaker 1>don't know riv and or like whoever is out there. Right,

0:08:33.400 --> 0:08:35.400
<v Speaker 1>we love you. No, I'm just saying no, no of

0:08:35.440 --> 0:08:37.480
<v Speaker 1>you at all. But I mean there's going to be

0:08:37.520 --> 0:08:42.160
<v Speaker 1>stumbles right as we make this change. Absolutely. Yeah. Look

0:08:42.280 --> 0:08:44.480
<v Speaker 1>the parallel here is you know, I I teach a

0:08:44.520 --> 0:08:46.080
<v Speaker 1>business school, right, and we if we go back thirty

0:08:46.160 --> 0:08:49.839
<v Speaker 1>years when I graduating business school, the big thing that

0:08:49.960 --> 0:08:52.520
<v Speaker 1>came and we didn't see it coming really was technology.

0:08:52.600 --> 0:08:55.240
<v Speaker 1>Technology changed all businesses, and we looked at telligent. Even

0:08:55.240 --> 0:08:58.040
<v Speaker 1>when we saw technology coming, it was often hard to

0:08:58.040 --> 0:09:00.880
<v Speaker 1>know which companies we're gonna win. You know, Netscape was

0:09:00.920 --> 0:09:03.800
<v Speaker 1>the biggest internet company there for a while and doesn't

0:09:03.800 --> 0:09:07.840
<v Speaker 1>exist anymore. Google paying along and it's still dominant. Those

0:09:08.400 --> 0:09:12.800
<v Speaker 1>changes in the world of technology, and specifically digital technologies

0:09:13.320 --> 0:09:16.800
<v Speaker 1>have revolutionized business in so many ways and results in

0:09:16.840 --> 0:09:19.600
<v Speaker 1>a lot of a lot of change. We look forward

0:09:19.720 --> 0:09:22.640
<v Speaker 1>thirty years, that's climate change. Climate change is going to

0:09:22.720 --> 0:09:26.200
<v Speaker 1>have a similar impact on businesses, and it's it's tough

0:09:26.240 --> 0:09:28.800
<v Speaker 1>to predict which specific companies are going to come out

0:09:28.840 --> 0:09:31.280
<v Speaker 1>on top, Bruce, Where is the drive going to come from?

0:09:31.320 --> 0:09:33.800
<v Speaker 1>When you think about investors, when you think about just

0:09:34.120 --> 0:09:37.360
<v Speaker 1>business risk, where you think about the government. Is this

0:09:37.520 --> 0:09:41.440
<v Speaker 1>something that so that these companies are going to do

0:09:41.520 --> 0:09:43.520
<v Speaker 1>on their own or does the government need to step

0:09:43.559 --> 0:09:47.000
<v Speaker 1>in and create regulations that guide them. Yes, So this

0:09:47.040 --> 0:09:48.840
<v Speaker 1>is an interesting moment and the reason why I wrote

0:09:48.840 --> 0:09:50.400
<v Speaker 1>the book. Now, I could have been working in second

0:09:50.400 --> 0:09:52.240
<v Speaker 1>twenty years. I could have written it some years ago

0:09:52.320 --> 0:09:55.680
<v Speaker 1>or waited a little longer. We're at a various moment

0:09:55.679 --> 0:09:58.559
<v Speaker 1>in time here because there's multiple drivers going at once. Right,

0:09:58.920 --> 0:10:01.000
<v Speaker 1>one driver is a Pisco risk. The climate change are

0:10:01.040 --> 0:10:06.080
<v Speaker 1>manifesting themselves increasingly, we're seeing climate change play out physically

0:10:06.080 --> 0:10:09.280
<v Speaker 1>instead that affects people. Consumers are starting to man more

0:10:09.280 --> 0:10:12.160
<v Speaker 1>sustainable products. Employees they want to work for companies they

0:10:12.160 --> 0:10:14.240
<v Speaker 1>believe are sustainable. These are all real trends and there's

0:10:14.240 --> 0:10:17.360
<v Speaker 1>a lot of economic researchers show that these actually effective businesses.

0:10:17.720 --> 0:10:20.200
<v Speaker 1>That you've got government government stepping up more than ever.

0:10:20.360 --> 0:10:24.720
<v Speaker 1>It's it's it's not consistent particularly here with parties change,

0:10:25.000 --> 0:10:27.960
<v Speaker 1>but the inflation reduction acts by far the largest government

0:10:28.000 --> 0:10:31.559
<v Speaker 1>support ever in this area, and that's as big implications.

0:10:31.960 --> 0:10:34.640
<v Speaker 1>And then the greatest change of all is around the innovation.

0:10:34.920 --> 0:10:38.600
<v Speaker 1>So we have products like solar and winds and electric

0:10:38.679 --> 0:10:43.480
<v Speaker 1>vehicles that are revolutionary and revolutionizing industries and also really

0:10:43.480 --> 0:10:46.679
<v Speaker 1>starting to bend the curve on emissions. Uh. I mean

0:10:46.679 --> 0:10:49.360
<v Speaker 1>here in the US, most people don't realize we actually

0:10:49.400 --> 0:10:52.160
<v Speaker 1>peaked in our greenhouse gas emissions back in two thousand seven.

0:10:52.320 --> 0:10:55.160
<v Speaker 1>We actually are in a det work not nearly quickly enough.

0:10:55.320 --> 0:10:57.800
<v Speaker 1>We have to be we have to accelerate this, this

0:10:57.800 --> 0:11:02.400
<v Speaker 1>this transition. But this innovation and technologies is really making

0:11:02.400 --> 0:11:03.880
<v Speaker 1>a big difference. So we've had a minute or so

0:11:04.040 --> 0:11:06.320
<v Speaker 1>left here, and there's a line in your story with

0:11:06.400 --> 0:11:09.680
<v Speaker 1>a graphicum or a picture. Investors should climate proof their

0:11:09.720 --> 0:11:12.079
<v Speaker 1>investments by mid century, in line with the recommendations of

0:11:12.120 --> 0:11:15.280
<v Speaker 1>climate scientists. So I'm thinking about our investors, you know,

0:11:15.280 --> 0:11:17.360
<v Speaker 1>people who are listening to this show, listening to you speak,

0:11:17.440 --> 0:11:22.960
<v Speaker 1>listening to this interview. What's the takeaway at this point

0:11:23.040 --> 0:11:26.079
<v Speaker 1>when they think about their investments and maybe their their strategy,

0:11:26.160 --> 0:11:30.760
<v Speaker 1>their their time frame and the like. Yeah, so the

0:11:30.760 --> 0:11:33.240
<v Speaker 1>the initial reactions that maybe, well, mid century is an

0:11:33.240 --> 0:11:36.000
<v Speaker 1>awfully long time. Now it's almost three decades and I'm

0:11:36.000 --> 0:11:37.760
<v Speaker 1>gonna be I'm gonna be pretty old. Hope, hope, I'm

0:11:37.760 --> 0:11:43.600
<v Speaker 1>still here talking to me then. But investments are priced

0:11:43.640 --> 0:11:46.480
<v Speaker 1>their value on future cash flows and future expectations on

0:11:46.600 --> 0:11:49.880
<v Speaker 1>the value in those assets most companies, and it's becoming

0:11:49.880 --> 0:11:53.719
<v Speaker 1>increasing at parent that the world is going to decarbonize

0:11:53.760 --> 0:11:55.839
<v Speaker 1>by the way, whether or not governments make it happen,

0:11:56.000 --> 0:11:58.200
<v Speaker 1>is going to happen these climate change is basic physics.

0:11:58.240 --> 0:12:00.960
<v Speaker 1>When you do to its going to force us to

0:12:00.960 --> 0:12:03.920
<v Speaker 1>do this. So you're looking at your your investments, think

0:12:03.920 --> 0:12:06.360
<v Speaker 1>about how they're going to be affected not thirty years

0:12:06.400 --> 0:12:07.679
<v Speaker 1>from now, and how they're going to get affected in the

0:12:07.640 --> 0:12:09.760
<v Speaker 1>the last a couple of years as these changes really

0:12:09.760 --> 0:12:14.400
<v Speaker 1>start to manifest themselves, and then reposition around that. Fascinating

0:12:14.480 --> 0:12:17.240
<v Speaker 1>and I think it's just so relevant to so much

0:12:17.280 --> 0:12:19.840
<v Speaker 1>going on, especially as we continue to see the impact

0:12:19.840 --> 0:12:22.360
<v Speaker 1>of climate change and then think about how it plays

0:12:22.800 --> 0:12:25.520
<v Speaker 1>certainly into investing strategy. Bruce A sure, thank you so much.

0:12:25.520 --> 0:12:27.880
<v Speaker 1>Hopefully we can catch up with you soon again in

0:12:27.920 --> 0:12:30.559
<v Speaker 1>the future, professor of professional Practice at Clubby Business School.

0:12:30.600 --> 0:12:32.240
<v Speaker 1>Check out his new book, Investing in the Era of

0:12:32.240 --> 0:12:34.680
<v Speaker 1>Climate Change. Uh, it is just at