WEBVTT - Live from The Earthshot Prize Innovation Summit 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg quick takes, Tim Stanobek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.640 plus technology, politics economics, all purtnising the power of Business 0:00:13.640 --> 0:00:17.560 Week reporters and editors, not to mention our journalists and analyst. 0:00:17.640 --> 0:00:20.400 In more than one twenty countries you can download Bloomberg 0:00:20.440 --> 0:00:23.479 Business Week and Itunes, soundcloud or Bloomberg Dot Com. You 0:00:23.480 --> 0:00:25.440 can also listen to our radio show at two PM 0:00:25.440 --> 0:00:28.360 eastern time on Bloomberg radio or watch us on Youtube. 0:00:28.400 --> 0:00:33.840 Search Bloomberg Global News. This is a special edition Bloomberg 0:00:33.960 --> 0:00:36.640 Radio and we are live on Bloomberg radio as well 0:00:36.640 --> 0:00:38.519 as on Youtube. But we are here at the Plaza 0:00:38.600 --> 0:00:40.800 New York City. A lot going on because of the 0:00:40.880 --> 0:00:43.199 UN General Assembly and a big part of it is 0:00:43.240 --> 0:00:46.519 an event here today hosted by Bloomberg Philanthropies, along with 0:00:46.520 --> 0:00:49.640 the Earth Shot Prize, and this is all about solutions, 0:00:50.360 --> 0:00:54.600 really focusing on our environment, our climate and just many 0:00:54.640 --> 0:00:59.200 people involved in it, from government officials to business professionals, entrepreneurs, investors, 0:00:59.480 --> 0:01:03.200 you name. Yeah, we got philanthropist, business executives, grassroots climate 0:01:03.240 --> 0:01:05.720 activists from all over the world. What they're doing is 0:01:05.760 --> 0:01:10.000 spotlighting emerging systems, changing solutions and showcasing the critical need 0:01:10.319 --> 0:01:13.479 to turbocharge groundbreaking climate innovations to address the world's most 0:01:13.560 --> 0:01:16.759 pressing environmental challenges. And I'm hearing a lot about timelines 0:01:16.800 --> 0:01:19.120 and deadlines and many people saying we don't have a 0:01:19.120 --> 0:01:22.240 lot of years left before that. This is really you 0:01:22.280 --> 0:01:24.600 can't reverse the impact that climate change has had on 0:01:24.640 --> 0:01:27.479 our environment. Well, earlier I got to catch up with 0:01:27.520 --> 0:01:30.160 the CEO of the Earth Shot Prize, she is Hannah Jones, 0:01:30.680 --> 0:01:33.120 to talk about the work that they are doing. They 0:01:33.520 --> 0:01:37.080 nominate finalists, they nominate winners and they really help them 0:01:37.120 --> 0:01:40.200 scale up their solutions. Behind the earth shop dries is 0:01:40.280 --> 0:01:43.360 none other than Prince William of the UK. This is 0:01:43.400 --> 0:01:46.200 because in the week, the energy, by the way, in 0:01:46.200 --> 0:01:48.720 this place is off the charts, which is exactly what 0:01:48.760 --> 0:01:51.200 we need this week. We need udge, an optimism and 0:01:51.240 --> 0:01:54.960 we need people feeling totally energized by the possibility. And 0:01:55.000 --> 0:01:58.920 that really takes me back to our founder, Prince William. 0:01:59.040 --> 0:02:02.120 Um He UN did the earth shot prize after having 0:02:02.120 --> 0:02:06.000 two insights. He was in a conservation project that was 0:02:06.040 --> 0:02:09.840 really successful in Namibia, but he felt terribly frustrated that 0:02:09.960 --> 0:02:13.239 this successful solution wasn't going to scale and it wasn't 0:02:13.240 --> 0:02:16.680 going to be replicated around the world. And yet it 0:02:16.720 --> 0:02:20.120 was helping poacher has become conservationists. It was changing the 0:02:20.280 --> 0:02:24.320 entire landscape. So why wasn't anyone scaling it? The second 0:02:24.680 --> 0:02:27.400 insight was that the dialogue at the time, back in 0:02:27.440 --> 0:02:30.680 twenty nine, was so full of fear and anger that 0:02:30.800 --> 0:02:33.320 he was worried that we wouldn't get to action and 0:02:33.400 --> 0:02:37.320 change if we didn't inject optimism into the conversation. So 0:02:37.400 --> 0:02:40.280 we married those two insights and he created the Earth 0:02:40.320 --> 0:02:42.640 Shot Prize. And the Earth Shot Prize is meant to 0:02:42.639 --> 0:02:46.960 be a beacon for urgent optimism and putting the spotlight 0:02:47.080 --> 0:02:50.840 on solutions that, if scaled, could repair and regenerate the planet. 0:02:51.320 --> 0:02:53.480 And you've got five different categories. Checked me a little 0:02:53.440 --> 0:02:55.600 bit about we do so. We did a lot of 0:02:55.639 --> 0:02:58.040 research into how we should do this and we've set 0:02:58.080 --> 0:03:01.840 up five earth shot challenges. One is oceans, which, by 0:03:01.880 --> 0:03:03.880 the way, I'm so in love with the innovation happening 0:03:03.880 --> 0:03:08.720 in oceans. One is in biodiversity, one is around waist 0:03:09.440 --> 0:03:12.880 clean air and climate change, and if you think about it, 0:03:13.200 --> 0:03:15.160 all of those things are the things that we need 0:03:15.200 --> 0:03:18.760 to see repaired and restored and regenerated for the Earth 0:03:18.919 --> 0:03:24.280 to be livable, equitable sustainable. So we award one million 0:03:24.400 --> 0:03:27.399 pounds each to a winner in each of the categories 0:03:27.480 --> 0:03:31.160 each year. But Prince William is very clear with us 0:03:31.240 --> 0:03:34.040 the team. We're going to have fifteen finalists as a 0:03:34.080 --> 0:03:36.720 whole and they are our family and we are here 0:03:36.760 --> 0:03:39.960 to support them all, irrespective of who ultimately wins the 0:03:40.000 --> 0:03:43.160 big money, and we see the money as catalytic. So 0:03:43.280 --> 0:03:47.400 we have this incredible partnership and collective of partners, of 0:03:47.400 --> 0:03:51.040 which Bloomberg Philanthropy's is obviously a key one. And so 0:03:51.320 --> 0:03:55.040 when we bring the finalists out into the spotlight, we're 0:03:55.080 --> 0:03:58.080 also looking at how we can give them access to talent, 0:03:58.720 --> 0:04:02.480 access to advice, access to networks of power and ultimately 0:04:02.520 --> 0:04:05.840 to blended capital, because we want them to go from 0:04:05.880 --> 0:04:09.320 being a great working prototype but if they were scaled, 0:04:09.920 --> 0:04:12.520 could make a huge impact. Let's do that fast, everybody. 0:04:12.920 --> 0:04:14.560 And you know what was interesting too, as you guys 0:04:14.600 --> 0:04:17.359 reach out around the globe right people were nominated a 0:04:17.440 --> 0:04:18.920 lot that you had to go through. What was it 0:04:18.960 --> 0:04:21.520 that made somebody stand out that you said I want 0:04:21.520 --> 0:04:24.200 these people to be a finalist and an ultimately a winner. 0:04:24.480 --> 0:04:26.800 It's a great question and it's the hardest part of 0:04:26.800 --> 0:04:29.719 our job. We have a price council that are made 0:04:29.800 --> 0:04:34.039 up of some incredible people. Christianity forget is we have 0:04:34.279 --> 0:04:38.880 Hindu Ibrahim, we have Sir David Attenborough, the prince, the 0:04:38.960 --> 0:04:42.000 list goes on, Queen Bran and they have to actually 0:04:42.040 --> 0:04:43.599 get to a place where they have to make the 0:04:43.640 --> 0:04:46.800 final five. Let me tell you, this is a terrible conversation. 0:04:48.120 --> 0:04:51.200 But before there we have a very rigorous process. So 0:04:51.240 --> 0:04:55.320 we have official nominators that bring in nominations every year 0:04:55.720 --> 0:04:58.840 and from that we're looking for, first of all, are 0:04:58.839 --> 0:05:03.120 these diverse? They represent really all of the countries in 0:05:03.160 --> 0:05:05.560 the world? Do they bring women to the four? Do 0:05:05.640 --> 0:05:08.120 they bring indigenous communities to the four? How do we 0:05:08.160 --> 0:05:11.960 make sure that we have representation? Secondly, I think do 0:05:12.040 --> 0:05:14.520 they have the potential to make an impact? So right 0:05:14.560 --> 0:05:16.960 now they're working prototype, but how are they going to 0:05:17.040 --> 0:05:21.640 impact if they went to scale, carbon or biodiversity or 0:05:21.640 --> 0:05:25.640 sustainable livelihood creation? How will they make an impact and 0:05:25.680 --> 0:05:28.080 do we see a pathway to help in them and 0:05:28.160 --> 0:05:30.520 if so, they get to the next stage, which is 0:05:30.880 --> 0:05:34.240 how can they inspire the world? And really that's a 0:05:34.320 --> 0:05:37.760 very complicated process. We have technical experts we really bring in. 0:05:37.800 --> 0:05:40.479 We have an ex external group that helps us, Deloitte, 0:05:41.040 --> 0:05:44.000 so that we make sure it's fair, objective and consistent. 0:05:44.080 --> 0:05:45.680 When we wanted to ask you is I do feel 0:05:45.680 --> 0:05:47.840 like there's a lot of momentum, certainly the investment world 0:05:47.880 --> 0:05:49.480 when it comes to the E S G space. Right 0:05:49.520 --> 0:05:53.920 a lot of money going into Sustainability Environment Um. What 0:05:54.120 --> 0:05:55.720 is it that set to you guys, apart with what 0:05:55.760 --> 0:05:58.920 you're doing at our earth shot? Well, you know, there's 0:05:58.960 --> 0:06:01.719 not a day and I don't meet with a philanthropist 0:06:01.880 --> 0:06:04.240 or a VC, with an e s g fund or 0:06:04.240 --> 0:06:07.680 an impact investor and after an initial conversation, they look 0:06:07.720 --> 0:06:10.360 at me and say, can I tell you a secret? 0:06:11.760 --> 0:06:14.760 Could you beat my deal pipeline? I don't have enough 0:06:14.800 --> 0:06:17.680 things that I know what to invest in. Interesting now 0:06:17.720 --> 0:06:20.599 we are sitting on this incredible we've got already over 0:06:20.640 --> 0:06:24.440 two thousand nominations just in eighteen months and we're vetting, 0:06:24.800 --> 0:06:27.200 you know, to get through a different stage. We're looking 0:06:27.200 --> 0:06:30.080 at them and we're saying, but how can we match make? 0:06:30.400 --> 0:06:34.680 How can we match make our ECO innovators with blended capital? 0:06:34.960 --> 0:06:36.960 Talking to some of your finalists, they say there's a 0:06:36.960 --> 0:06:39.320 lot of things having a seat at the table, but capital. 0:06:39.440 --> 0:06:43.120 It's crucial for scale, with scalability. Imagine that you are 0:06:43.240 --> 0:06:46.839 any one of these finalists or innovators. You're not walking 0:06:46.880 --> 0:06:50.240 down Sands Hill road and bumping into a VC every day, right. 0:06:50.279 --> 0:06:52.760 You're living in Nigeria thinking of how you do a 0:06:52.800 --> 0:06:55.919 low cost solar leasing program to help people in the 0:06:55.960 --> 0:06:59.760 local slums to have access to green electricity. But you 0:06:59.800 --> 0:07:02.640 need funding, but you have no access to those networks 0:07:02.640 --> 0:07:06.160 of privilege. Prince William was very clear. I want to 0:07:06.279 --> 0:07:09.640 use my privilege and my platform to convene and make 0:07:09.720 --> 0:07:13.800 that funding conversation happening faster. But having worked so much 0:07:13.800 --> 0:07:16.040 with entrepreneurs, what I'll also tell you this. When you 0:07:16.080 --> 0:07:19.200 go on that journey from being a prototype to being scale, 0:07:19.680 --> 0:07:22.880 you don't just need money, right. You need advice, you 0:07:22.920 --> 0:07:26.679 need support, you need compassion and kindness, you need leadership training, 0:07:26.800 --> 0:07:30.880 storytelling training. So that's something that we're also really supporting 0:07:31.000 --> 0:07:33.840 and our Global Alliance of partners. They're not just putting 0:07:33.880 --> 0:07:37.720 capital in they're putting staff in, they're putting expertise in 0:07:37.840 --> 0:07:40.320 their opening up their supply chains, you know. And what's 0:07:40.320 --> 0:07:42.040 interesting is, you know, when we think about the world 0:07:42.640 --> 0:07:44.920 capitals and entrepreneurs there are doing some really cool things, 0:07:44.920 --> 0:07:49.160 but we're talking literally about saving the world, saving the planet, 0:07:49.160 --> 0:07:51.280 Earth Shot. We talk about moon shots right like doing 0:07:51.320 --> 0:07:54.680 the unthinkable. This is about existence for everyone, and that's 0:07:54.680 --> 0:07:57.360 where you talk about oceans and earth and energy. I mean, 0:07:57.360 --> 0:08:00.360 this is what we're talking about. It is you know, 0:08:00.480 --> 0:08:02.920 one of the things to think about is this is 0:08:02.960 --> 0:08:06.800 the sixtieth anniversary of the Moon Shot and Prince William 0:08:06.880 --> 0:08:11.280 was really influenced by President Kennedy's Moon shot challenged to 0:08:11.280 --> 0:08:15.080 the American people because it did two things. He didn't 0:08:15.120 --> 0:08:17.720 just challenge them to land a man on the moon 0:08:17.760 --> 0:08:20.000 and bring them home safely when we knew none of 0:08:20.040 --> 0:08:23.280 the answers to how to do that. What actually happened 0:08:23.400 --> 0:08:27.120 was it unleashed a wave of innovation that shaped economic 0:08:27.160 --> 0:08:31.720 and social progress and maybe more importantly, he unleashed a 0:08:31.760 --> 0:08:34.120 new mindset in the American people, which was we can 0:08:34.200 --> 0:08:38.080 turn the seemingly impossible possible. We have to make this 0:08:38.160 --> 0:08:41.120 fear shot decade and we have to unleash that mindset again. 0:08:41.600 --> 0:08:45.000 We have innovation all over the world happening. We've got 0:08:45.000 --> 0:08:47.360 to believe we can do this and change the trajectory 0:08:47.360 --> 0:08:49.199 of the planet and it will take all of us. 0:08:51.920 --> 0:08:53.600 That's handed Jones. Of course they see, you know, the 0:08:53.600 --> 0:08:56.120 Earth Shot Prize. I caught up with her earlier here 0:08:56.160 --> 0:08:59.480 at the Earth Shot Prize innovations summits. So really interesting 0:08:59.520 --> 0:09:02.840 in terms of what their work is doing. This is 0:09:02.880 --> 0:09:06.839 Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes 0:09:06.920 --> 0:09:11.240 Tim Stinovic on Bloomberg radio. We actually have somebody here 0:09:11.240 --> 0:09:14.360 WHO's part of the establishment and they all up and 0:09:14.400 --> 0:09:17.120 disrupted quite a bit. Very pleased right now to have 0:09:17.200 --> 0:09:20.599 with us Dr Andrew Forest. He's Executive Chairman of Fortescue 0:09:20.600 --> 0:09:22.280 metals group. He's on site with us at the Earth 0:09:22.320 --> 0:09:25.360 Shot Prize Innovation Summit here at the Plaza Hotel in 0:09:25.559 --> 0:09:27.679 New York City. Great to have you with us. How 0:09:27.720 --> 0:09:30.720 are you? I'm a great chet thing on farm, so 0:09:31.320 --> 0:09:34.400 happy to have made this announcement time about the millions 0:09:34.400 --> 0:09:36.360 of manous to get it done. Well, let's talk about 0:09:36.360 --> 0:09:39.120 this announcements because it's a big one. Over the next decade. 0:09:39.280 --> 0:09:42.880 You're looking to spend six point two billion dollars to 0:09:42.960 --> 0:09:46.120 curb iron or emissions at your mind. So you're moving 0:09:46.160 --> 0:09:50.000 away from diesel. And we're not talking carbon offsets here. 0:09:50.240 --> 0:09:53.880 We're talking about completely eliminating fossil fuels and going with 0:09:53.920 --> 0:09:57.480 renewable sources instead, so there's no impact on the environment exactly. 0:09:57.520 --> 0:10:02.000 So we're not moving away or curbing stopping all fossil 0:10:02.040 --> 0:10:04.080 fuel use. I've been up to my site. So I've 0:10:04.080 --> 0:10:08.120 said to my major operators of these huge industrial sites. Says, okay, 0:10:08.120 --> 0:10:11.600 I'm coming up in and I'm going to switch off 0:10:11.640 --> 0:10:14.439 the diesel, I'm gonna switch off the oil and gas 0:10:14.520 --> 0:10:18.040 lever and if you guys do not have plans where 0:10:18.120 --> 0:10:20.600 I can keep them off, I'm probably going to shake 0:10:20.600 --> 0:10:24.360 you down. And they've come up with these most brilliant, 0:10:24.400 --> 0:10:27.120 practical plans, because they're now part of the problem and 0:10:27.200 --> 0:10:30.040 they'refore part of the solution. And for six point two 0:10:30.040 --> 0:10:35.080 billion we can step beyond fossil fuel and return almost 0:10:35.120 --> 0:10:38.000 to billion dollars a year to shareholders. It's got to 0:10:38.000 --> 0:10:40.840 be a good investment, all right. So help me out 0:10:40.960 --> 0:10:45.600 in and wine now, because we have the technology now. 0:10:45.640 --> 0:10:48.520 I mean, I'm an investor in break through energy. I'm 0:10:48.559 --> 0:10:51.240 invested in this and that. But why wait? I mean, 0:10:51.320 --> 0:10:54.360 everyone's sticking around waiting. The planet, I promise you, is cooking. 0:10:54.400 --> 0:10:58.160 I'm a ecologist. What's happening in the oceans is way 0:10:58.160 --> 0:11:01.000 worse than what's happening on land. But it's blowing up 0:11:01.000 --> 0:11:03.480 on a soil on land. You know, the youth across 0:11:03.520 --> 0:11:07.120 the world can see it. Carbon credits, fuel, everything's getting 0:11:07.160 --> 0:11:12.720 way more expensive. Yet renewable energy is free, okay, and 0:11:12.880 --> 0:11:18.079 it's infinite. Why wait? It's it's not always free and infinite, though. 0:11:18.440 --> 0:11:20.360 It's not infinite in the sense of okay, well, if 0:11:20.360 --> 0:11:23.200 you're using solar there's snay time, if using wind there 0:11:23.200 --> 0:11:26.440 are days that are not windy, and if you're using 0:11:26.520 --> 0:11:30.520 hydro power there are sometimes that water levels. So how 0:11:30.520 --> 0:11:32.360 are your accounting from? You've heard of fossil fuel, right. 0:11:32.679 --> 0:11:35.000 They spend so much time pumping their gas down into 0:11:35.000 --> 0:11:37.120 these salt domes so they can draw it out later. 0:11:37.360 --> 0:11:39.000 We're not a lot different. I mean we don't have 0:11:39.080 --> 0:11:42.680 to throw it down for months. We'll have batteries. We 0:11:42.840 --> 0:11:45.719 have pumped hydro, you know, water up to the top 0:11:45.760 --> 0:11:47.439 of the hill in the day and write it down 0:11:47.480 --> 0:11:51.600 at night. We have gravitational energy which runs these trades ours. 0:11:51.600 --> 0:11:54.800 We got the biggest heaviest trains on earth, right five 0:11:55.240 --> 0:11:58.600 kilometer trains. They take forty tons of vinyl on their 0:11:58.600 --> 0:12:02.440 backs down to sea level. It's more than enough parabolical 0:12:02.760 --> 0:12:05.280 gravity energy than you'll ever need to send that train 0:12:05.840 --> 0:12:09.720 back up the hill. So there's a huge train system 0:12:09.840 --> 0:12:13.360 currently pumping through millions and millions of leaders of diesel, 0:12:14.240 --> 0:12:18.400 breaking itself going down the hill. So stop that, use 0:12:18.440 --> 0:12:20.800 that energy, send the train back up. There you've traded 0:12:20.880 --> 0:12:25.319 an infinity train, no external source of power, no emissions. 0:12:25.640 --> 0:12:28.120 We're doing that for trucks. We're doing that for a 0:12:28.160 --> 0:12:33.320 fixed plant, different technologies, but technologies which exist today. And 0:12:33.440 --> 0:12:36.079 you how much of it is also, though, in terms 0:12:36.120 --> 0:12:37.800 of the timing. What's going on in terms of the 0:12:37.800 --> 0:12:40.440 macro environment. Obviously we're all talking a lot more about 0:12:40.520 --> 0:12:43.240 energy and the energy crisis that we're seeing over in Europe, 0:12:43.280 --> 0:12:46.080 specifically because of the Russian invasion the Ukraine. Everybody all 0:12:46.120 --> 0:12:49.079 of a sudden is putting their foot on the gas 0:12:49.080 --> 0:12:52.440 pedal when it comes to alternative energy. It's been there 0:12:52.600 --> 0:12:55.440 and yet the ramp up has taken longer. You talk 0:12:55.520 --> 0:12:57.280 about the technology being there, but how much of the 0:12:57.360 --> 0:13:00.560 macro forces are also up? I'm seeing a ramp up 0:13:00.600 --> 0:13:04.520 the talk. I'm saying hang a ramp up a panic, 0:13:05.000 --> 0:13:08.040 and there should be, because we've never had a drying 0:13:08.080 --> 0:13:11.920 event this year around the world, not in the last 0:13:12.000 --> 0:13:18.480 hundred years, in history, record temperatures in history. So there's 0:13:18.520 --> 0:13:21.760 a sense of panic now. But we are reacting to 0:13:21.800 --> 0:13:25.079 what is great for our shareholders. Six point two billion 0:13:25.400 --> 0:13:29.040 in one off, nearly a billion out, twenty million out 0:13:29.120 --> 0:13:33.120 every single year forever. And it does not take into 0:13:33.200 --> 0:13:36.360 account the three billion we earned on the way through. 0:13:36.400 --> 0:13:38.040 So we're gonna build this thing up in the next 0:13:38.040 --> 0:13:42.280 several years, not in ten years, next several years. On 0:13:42.360 --> 0:13:44.520 the way through we start saving money. We saved eighty 0:13:44.559 --> 0:13:47.400 million last year on the way through. We will save 0:13:47.440 --> 0:13:50.280 a further three billion dollars. You take that three billion 0:13:50.320 --> 0:13:54.760 off the six point two. You don't have quit ray 0:13:54.800 --> 0:13:59.760 to return anymore. You have six rate of return. That 0:14:00.000 --> 0:14:02.600 out of beats Warren Buffett's miracle of nine percent. Right, 0:14:03.640 --> 0:14:06.839 and we're green. So it's a business decision. Or it's 0:14:06.880 --> 0:14:09.280 business and you're also just looking at the environment I 0:14:09.280 --> 0:14:11.520 am an ecologist, I am a scientist. Yes, I'm a 0:14:11.520 --> 0:14:16.360 business person, but my shareholders will not tolerate flansby for 0:14:16.400 --> 0:14:19.360 a business. You do Flans from your dividends, Andrews, but 0:14:19.440 --> 0:14:23.040 our business must make money. This is a fabulous business decision. 0:14:23.600 --> 0:14:27.000 So do the other miners, the real tenders of the world, 0:14:27.000 --> 0:14:29.760 and more do they follow your lead? Look, they're good guys. 0:14:30.200 --> 0:14:32.440 I've been in touch with the chief executives all the 0:14:32.440 --> 0:14:34.600 big miners. What have they told you? And I've said, 0:14:34.680 --> 0:14:37.000 how you do? Please tell us. Would you share said? 0:14:37.160 --> 0:14:41.400 Of course, we'll have full present full how to presentations. 0:14:42.000 --> 0:14:44.320 You get your senior leadership, I'll get my senior leadership. 0:14:44.560 --> 0:14:48.120 Will break down dollar by dollar, peace based piece time, 0:14:48.120 --> 0:14:49.720 in the full by time and of all, how we 0:14:49.880 --> 0:14:54.520 are doing, not will do it. Are doing well, and 0:14:54.600 --> 0:15:00.000 I do wonder too. You know, as you do this Um, 0:15:00.040 --> 0:15:03.480 are there any obstacles that will come into play at 0:15:03.520 --> 0:15:05.480 this point where you've already worked it all out? Because 0:15:05.480 --> 0:15:08.440 they do think about as people transition, it's not always 0:15:08.440 --> 0:15:11.239 so fluid and smooth because there is such an establishment 0:15:11.320 --> 0:15:14.480 out there and pushed back. Look, I think because it 0:15:14.520 --> 0:15:17.000 has not been done before, there's no other company in 0:15:17.000 --> 0:15:19.880 the heavy manufacturing, heavy industry world that has done it. 0:15:20.000 --> 0:15:23.920 So I need the disbelief to go away. I mean 0:15:24.360 --> 0:15:27.120 we started as a timely little company and we challenged 0:15:27.480 --> 0:15:30.200 the biggest industry in the resources world, which is iron know, 0:15:30.360 --> 0:15:34.960 it's like a closed shot, totally protected. Now we've busted 0:15:34.960 --> 0:15:36.760 it open where one of the biggest players in the 0:15:36.760 --> 0:15:39.160 world turned a million tons a year. That's not chopped 0:15:39.200 --> 0:15:42.520 liver right now spread around the world. Now we're taking 0:15:42.640 --> 0:15:47.960 that huge manufacturing center and stopping it using any fossil 0:15:48.000 --> 0:15:51.240 fuel and people are saying, yeah, if you can do it, 0:15:51.320 --> 0:15:54.440 wise in everyone. Well, that's the question. Don't question that. 0:15:54.520 --> 0:15:58.760 We can do it. Question why isn't everyone else? Well, 0:15:58.880 --> 0:16:01.880 not everyone else. The background, as in the college. That's 0:16:01.920 --> 0:16:04.520 part of it perhaps. But I also wonder if you 0:16:04.520 --> 0:16:06.520 can take us more into your thinking behind this, because 0:16:06.560 --> 0:16:08.440 you and I spoke years ago and you were on 0:16:08.480 --> 0:16:11.320 the forefront of thinking about the environmental concerns when it 0:16:11.320 --> 0:16:13.400 comes to mining. But but something that I've been thinking 0:16:13.400 --> 0:16:15.640 about is, and I mean this with all due respect, 0:16:15.640 --> 0:16:17.840 if there's any sort of like a tournament that you're 0:16:17.840 --> 0:16:20.880 thinking about here, because, with all due respect, mining is 0:16:21.080 --> 0:16:26.280 is something that is not inherently different. Okay. Well, unfortunately, 0:16:26.360 --> 0:16:28.800 if we were to stopped mining, we wouldn't be sitting here, 0:16:28.840 --> 0:16:32.280 this building wouldn't exist. You know, everything would stop. So 0:16:32.840 --> 0:16:35.600 we have to do mining. Mining is not the problem. 0:16:36.000 --> 0:16:40.200 How we mind that's the problem. We have to mind brain. 0:16:40.320 --> 0:16:43.120 We have to mind zero missions. The mining industry can 0:16:43.200 --> 0:16:46.800 step beyond fossil fuel. Now I have a sense of 0:16:46.800 --> 0:16:51.760 a tonement to my kids and to everybody because I'm 0:16:51.800 --> 0:16:54.560 part of the fossil fuel era, but I don't put 0:16:54.640 --> 0:16:57.880 coal in my mind. All My product has zero carbon 0:16:57.960 --> 0:17:00.960 in it. There's nothing in it. So fucking persuade my 0:17:01.000 --> 0:17:04.440 customers to put hydrogen, not col in it, then I'm 0:17:04.520 --> 0:17:08.679 super happy. But I haven't exported carbon, Maka, that's not 0:17:08.720 --> 0:17:12.160 my business. I've exported iron and then carbon goes into 0:17:12.200 --> 0:17:14.000 the iron. I want to stop that. I want to 0:17:15.400 --> 0:17:18.080 saying to all my customers we're gonna give you green 0:17:18.160 --> 0:17:22.640 iron first time in your light. You've got green iron ore, 0:17:23.359 --> 0:17:29.280 replace the coal with hydrogen and you've got green steel. Um, 0:17:29.320 --> 0:17:32.080 just real quickly, because we have you here in re Bloomberg, 0:17:32.359 --> 0:17:34.879 what does the macro environment on this dead day? What 0:17:34.960 --> 0:17:37.280 does the macro environment look like to you right now. 0:17:37.560 --> 0:17:41.200 We have to step carefully. You've got interest rate fluctuations, 0:17:41.280 --> 0:17:45.800 you've got a lunatic invading another country totally unfairly. So 0:17:45.840 --> 0:17:48.480 we have to step carefully. How we step carefully is 0:17:48.520 --> 0:17:51.280 by bringing out operating costs down to go from the 0:17:51.359 --> 0:17:54.600 last cost iron or production in the world and even 0:17:54.680 --> 0:17:57.760 lower cost iron or production in the world. So our 0:17:57.840 --> 0:18:01.840 margins are maximist and we're learning. No fosterculs, so we're 0:18:01.880 --> 0:18:06.280 not exposed to torrents, we're not exposed to foster fuel 0:18:07.520 --> 0:18:10.920 ups and downs, and he's spling some roundabouts. We are 0:18:11.119 --> 0:18:15.040 taking our energy from the sun and the wind. Dr 0:18:15.119 --> 0:18:18.760 Andrew Forest, Executive Chairman Fortescue metals group. He's with us 0:18:18.760 --> 0:18:21.160 on site of the Earth Shot Prize Innovation Summit at 0:18:21.160 --> 0:18:23.399 the Plaza Hotel here in New York City. Dr Forest, 0:18:23.800 --> 0:18:27.760 great to see you again. Thanks. Thank you. You're listening 0:18:27.800 --> 0:18:31.680 to Bloomberg Business Week with Carol Messer and Bloomberg Quick 0:18:31.680 --> 0:18:35.480 Takes Tim Stinovic on Bloomberg radio. All right, we want 0:18:35.480 --> 0:18:37.600 to take you back to the plaza. This is where 0:18:37.640 --> 0:18:41.200 we are the Earth Shot Prize of innovation summit and 0:18:41.440 --> 0:18:43.960 luckily for us, Kath mchanna stop by chair the UN 0:18:44.040 --> 0:18:47.280 High Level Expert Group. She's former minister of environment climate 0:18:47.359 --> 0:18:50.680 change of Canada, so on site with her, on site 0:18:50.680 --> 0:18:54.119 with us here, it's hard to kind of hear yourself think. 0:18:55.240 --> 0:18:58.160 What's really wonderful, and I think even in our last conversation, 0:18:58.280 --> 0:19:01.760 just the conversation that we are having, and it does 0:19:01.800 --> 0:19:05.040 feel like we just talked with uh, you know, all right, 0:19:05.080 --> 0:19:07.720 court execute and just the investment that they're making and 0:19:07.840 --> 0:19:10.159 really thinking about Greena emity, not even just thinking you'd 0:19:10.160 --> 0:19:14.000 be taking actions. How do you feel about like where 0:19:14.040 --> 0:19:16.959 the conversation is going and how people are looking at 0:19:17.000 --> 0:19:19.880 climate change and really the impact and what we need 0:19:19.920 --> 0:19:22.240 to do now? Well, I mean I think first of 0:19:22.240 --> 0:19:24.560 all we're seeing climate change having an impact like that. 0:19:24.640 --> 0:19:27.120 You go to Puerto Rico and basically no one had 0:19:27.160 --> 0:19:30.760 any power under water, but that's happening everywhere in Canada. 0:19:30.800 --> 0:19:34.199 We go to down a lit literally inciderated Um. So 0:19:34.240 --> 0:19:36.280 that's the bad side. The good side is this is 0:19:36.320 --> 0:19:40.320 really the largest economic opportunity not just in a decade 0:19:40.359 --> 0:19:42.879 but in in our lifetime. And then and now we 0:19:42.920 --> 0:19:45.800 need to translate the ambition that I think we've seen 0:19:45.880 --> 0:19:49.160 a lot of companies, financial institutions, cities and regions saying 0:19:49.200 --> 0:19:51.720 they want to be nat zero Um. Obviously we have 0:19:51.880 --> 0:19:54.480 the nation's part of the Paris Agreement, but we need 0:19:54.480 --> 0:19:57.000 to actually see the action, and so that's what I'm 0:19:57.000 --> 0:20:00.200 working at as part of the secretary general who made 0:20:00.200 --> 0:20:02.760 this high level grip. It's got to very long acrotim 0:20:02.840 --> 0:20:05.639 like the US has been, but basically it hasn't had 0:20:05.680 --> 0:20:08.639 a long time right. No, super short. So actually that's 0:20:08.720 --> 0:20:11.400 quite good because I'm into like, let's get things done. 0:20:11.440 --> 0:20:14.040 We do not have time and often we have a 0:20:14.080 --> 0:20:16.480 lot of a lot of chatting, and I'm a person 0:20:16.480 --> 0:20:18.440 of action. In Canada we did a lot Um. We 0:20:18.560 --> 0:20:21.080 put a price on pollution, which would be had carbon pricing. 0:20:21.119 --> 0:20:23.320 I would be able to do a lot more, but 0:20:23.440 --> 0:20:25.400 the group is actually looking like what do you need 0:20:25.440 --> 0:20:28.280 to do? What do you need to show to show progress? Like, 0:20:28.320 --> 0:20:30.800 don't just talk about fifty we don't have time. I 0:20:30.840 --> 0:20:33.600 was just with Mike Bloomberg. He's like, look, I don't 0:20:33.640 --> 0:20:36.479 know whether we have you know, we're even talking far 0:20:36.600 --> 0:20:38.400 too wrong, like we've got to talk about what we're 0:20:38.400 --> 0:20:40.640 doing now, what we're doing next year. And so it's 0:20:40.640 --> 0:20:44.879 really about getting corporate's financial institution, cities and regions to say, okay, 0:20:44.920 --> 0:20:47.840 this is our plan, is that we're gonna transition, going 0:20:47.920 --> 0:20:51.600 to identify the laggards, but also really positive, identifying folks 0:20:51.640 --> 0:20:53.880 that are doing things right. At the same time, though, 0:20:54.440 --> 0:20:56.159 I think that a lot of people might have the 0:20:56.200 --> 0:20:59.240 sense that we're much further behind than we thought we were, 0:20:59.600 --> 0:21:02.399 and I say that because of what's happening in Europe 0:21:02.480 --> 0:21:05.320 right now, with Russia's invasion of Ukraine. It came into 0:21:05.320 --> 0:21:08.560 stark relief this year just how reliant the entire world 0:21:08.680 --> 0:21:13.200 is on fossil fuels. How far behind are we? Because 0:21:13.240 --> 0:21:15.240 if you were asking me a year ago, I would 0:21:15.240 --> 0:21:17.320 have painted a picture that we were so much further 0:21:17.400 --> 0:21:20.880 ahead when it comes to a transition then we actually are. Well, 0:21:20.920 --> 0:21:22.840 I mean, I'm someone who also thinks we need to 0:21:22.840 --> 0:21:25.320 call things out, and the reality is, I mean, you 0:21:25.359 --> 0:21:28.919 can take things as a risk or an opportunity, and 0:21:28.960 --> 0:21:31.360 I worry that you know we're gonna say, well, look 0:21:31.400 --> 0:21:33.840