WEBVTT - Addressing AI Concerns, Disclosing Climate Risks

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 2>Tim Stenebek on Bloomberg Radio.

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<v Speaker 3>Do you want AI involved in your brain surgery if

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<v Speaker 3>it's really good?

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<v Speaker 2>Okay.

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<v Speaker 3>The reason I'm asking you is because China is actually

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<v Speaker 3>testing an AI assistant for neurosurgeons seven hospitals in Beijing.

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<v Speaker 3>The bot's going to answer questions with citations based on

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<v Speaker 3>more than a million academic records, could help with CT

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<v Speaker 3>scans images. Eventually, though, the researchers envision the AI taking

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<v Speaker 3>a more active role, warning doctors from pursuing risky procedures

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<v Speaker 3>for instance.

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<v Speaker 1>Yeah, there's a lot of questions about this, right. We

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<v Speaker 1>have a great guest to talk about this, because you know,

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<v Speaker 1>the idea of having AI helping in the operating room

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<v Speaker 1>could be an issue of trust. But you do wonder

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<v Speaker 1>you could have a doctor who's had a little tired

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<v Speaker 1>watching the oscars or doing something else, and you do

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<v Speaker 1>wonder about that element. So there's a lot at stake

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<v Speaker 1>here and we've got a great guest to get into it.

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<v Speaker 3>Yeah. Michelle guide To, a CEO of the CROC Institute

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<v Speaker 3>for Tech Diplomacy at pursue. She's Purdue. She's also a

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<v Speaker 3>former Assistant Secretary of State for Global Public Affairs that

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<v Speaker 3>was during the Trump administration from twenty eighteen to twenty twenty.

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<v Speaker 3>Michelle joins us from Austin at Texas. Michelle, good to

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<v Speaker 3>have you on with us.

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<v Speaker 2>How are you good to be with you?

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<v Speaker 3>Well, good to join us. I'm so glad you're joining

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<v Speaker 3>us on this because we've been talking a lot about AIS.

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<v Speaker 3>You can probably imagine, but you and the team over

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<v Speaker 3>at the Institute for Tech Diplomacy at Purdue. I got

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<v Speaker 3>a a poll on our radar from Edelman and we

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<v Speaker 3>talked to the Edelman team a lot about their trust barometer.

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<v Speaker 3>And this one specifically has to do with trust in

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<v Speaker 3>AI companies declining. And it's not just here in the US,

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<v Speaker 3>but it's around the world too. How can companies that

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<v Speaker 3>are working on this technology earn the trust of us?

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<v Speaker 2>So thanks for that question. I've seen that poll and

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<v Speaker 2>it says that about thirty five percent of Americans now

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<v Speaker 2>trust companies to do what's right when it comes to

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<v Speaker 2>artificial intelligence. Let me give two other numbers for you.

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<v Speaker 2>The first is twenty thirty, which is the year that

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<v Speaker 2>China has stated that it wants to lead and dominate

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<v Speaker 2>in artificial intelligence. The other number is fifty one billion dollars,

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<v Speaker 2>and that's how much China is committing to science and technology,

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<v Speaker 2>which is up ten percent from last year. They just

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<v Speaker 2>announced this coming out of their National Party Congress. And

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<v Speaker 2>I share those because there's important context in terms of

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<v Speaker 2>the trust that we are putting in our government and

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<v Speaker 2>in our tech companies to innovate properly when it comes

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<v Speaker 2>to artificial intelligence. But it's not happening in a vacuum.

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<v Speaker 2>That is happening in the context of a competition with

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<v Speaker 2>adversaries across the world who want to use these technologies,

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<v Speaker 2>dominate in these technologies, and compete with us in order

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<v Speaker 2>to advance their value system and their systems of government

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<v Speaker 2>which are authoritarian versus ours. So that's really important context.

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<v Speaker 2>But this notion of trust is so central, and it's

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<v Speaker 2>not about the tech, it's about the trust. And the

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<v Speaker 2>good news is we don't just have to rely on

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<v Speaker 2>government to get it right. We don't just have to

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<v Speaker 2>rely on tech companies to get it right. And what

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<v Speaker 2>the CROC Institute for Tective PLOYANCDE is doing is also

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<v Speaker 2>making sure that citizens are involved in shaping this, that

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<v Speaker 2>they have a right and they have a responsibility in

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<v Speaker 2>order to help shape and dictate where AI goes. I'm

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<v Speaker 2>here at south By Southwest in Austin. This is a

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<v Speaker 2>gathering every year of creatives and leaders in media and

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<v Speaker 2>an innovation and that's why we're here having conversations around, well,

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<v Speaker 2>what is the role necessary role that you play in

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<v Speaker 2>national security and in geopolitical competition. So it's getting everybody involved,

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<v Speaker 2>and here's two practical ways to do this.

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<v Speaker 3>Hold on, let me let's I just want to jump

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<v Speaker 3>in real quick, because I you know, if there is

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<v Speaker 3>one thing that unites democrats and Republicans, like, there's only

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<v Speaker 3>one thing, I think it's it's kind of beating up

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<v Speaker 3>on these tech CEOs when they do testify. And we

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<v Speaker 3>did see in recent weeks examples of the way that

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<v Speaker 3>Democrats and Republicans do not think that companies like meta

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<v Speaker 3>platforms have guardrails on the way that they're serving content,

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<v Speaker 3>the algorith rhythms that they're using two feed content to

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<v Speaker 3>for lack of a better term, miners here in the US.

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<v Speaker 3>So I'm wondering how you can rely solely on companies

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<v Speaker 3>to actually get this right without involvement from government or

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<v Speaker 3>without relying on government.

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<v Speaker 2>Yeah, well, I would add and maybe challenge what you

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<v Speaker 2>just said. There's actually another really bipartisan issue in DC,

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<v Speaker 2>and that is winning the competition against China, and specifically

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<v Speaker 2>on technology. And so with that context, it isn't just

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<v Speaker 2>about relying on tech companies to get it right, whether

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<v Speaker 2>it's in the US or in any of our like

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<v Speaker 2>minded partners in allies countries, and it isn't just relying

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<v Speaker 2>on government. One good example of talking about bipartisanship is

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<v Speaker 2>there's a new House bipartisan Task Force on Artificial Intelligence.

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<v Speaker 2>So you've got leaders in the House across both sides

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<v Speaker 2>of the aisle coming together to think about how do

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<v Speaker 2>we engage industry in the right way, engage the public

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<v Speaker 2>in the right way in dictating what role artificial intelligence

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<v Speaker 2>plays in our lives. That's a great place for those

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<v Speaker 2>who responded to the poll and said they don't trust companies,

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<v Speaker 2>so they don't trust government to get it right. Then

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<v Speaker 2>working with and getting involved with the members. There's twelve

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<v Speaker 2>members in that House caucus and that task force is

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<v Speaker 2>a really good way to do it.

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<v Speaker 1>How do we do that. I mean, companies are going

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<v Speaker 1>to be very careful. They don't love regulatory oversight, they

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<v Speaker 1>don't like what they might deem as extreme regulatory oversight.

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<v Speaker 1>I'm playing a little bit Devil's advocates. So how do

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<v Speaker 1>we create quickly the right private public partnership on this,

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<v Speaker 1>And to be fair, it's got to be global. None

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<v Speaker 1>of these companies are operating in a vacuum, right. We've

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<v Speaker 1>seen this with financial regulatory oversight, and often Europe has led.

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<v Speaker 1>We think about kind of climate Europe has led. So

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<v Speaker 1>how do we do this in a smart way and quickly.

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<v Speaker 2>It's interesting that you actually see companies Microsoft, for example,

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<v Speaker 2>trying to lead the conversation on AI and essentially saying

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<v Speaker 2>we're not going to wait for government regulations to figure

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<v Speaker 2>this out, and we're actually going to put out a

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<v Speaker 2>proactive point of view on what we think some of

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<v Speaker 2>the guardrails might be and initiate that conversation with government

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<v Speaker 2>not only here in the US, but to your point,

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<v Speaker 2>in Europe and across other parts of the world. And

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<v Speaker 2>that was a lesson learned I think from social media

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<v Speaker 2>where we're flipping the script now and seeing private sector

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<v Speaker 2>companies try to initiate that conversation. And that's a good

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<v Speaker 2>thing because look, if do you feel.

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<v Speaker 1>Like, can I ask you something of the Michelle, do

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<v Speaker 1>you feel like the world has learned their message on

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<v Speaker 1>not having enough oversight on social media? And I know,

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<v Speaker 1>we get into a free speech. There's it's complicated, right,

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<v Speaker 1>It's not so black and white. But have we learned

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<v Speaker 1>the lesson that you know, not having enough oversight in

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<v Speaker 1>social media and content and you know, the false content

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<v Speaker 1>that gets out there, the content that can hurt in

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<v Speaker 1>so many different ways. Have we really learned the lesson

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<v Speaker 1>so that we get it right this time around when

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<v Speaker 1>it comes to AI.

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<v Speaker 2>I definitely think you see some changes. So for example,

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<v Speaker 2>when Facebook came out, Twitter came out, there wasn't a

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<v Speaker 2>House bipartisan Caucus on social media because we didn't know

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<v Speaker 2>that we needed one, and that all came after the facts.

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<v Speaker 2>So now in the early days, you have things like this,

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<v Speaker 2>this task force in the House trying to get ahead

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<v Speaker 2>of it. You have companies I mentioned Microsoft earlier, trying

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<v Speaker 2>to get ahead of it. But here's the thing we

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<v Speaker 2>don't want to rely too much on and point the

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<v Speaker 2>finger at government to say, go figure it out, because

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<v Speaker 2>if tech companies and innovators don't know where the technology

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<v Speaker 2>is going, our government leaders, sure as heck, don't know

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<v Speaker 2>where it's going. And so this has to be a

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<v Speaker 2>collaborative conversation not only with the innovators and the high

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<v Speaker 2>tech companies and with government leaders and policymakers, but also

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<v Speaker 2>with customers of those tech companies and constituents of those

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<v Speaker 2>politics we trust to different.

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<v Speaker 1>How can we trust them to do it right? Come on,

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<v Speaker 1>because they make money over you know, having more eyeballs,

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<v Speaker 1>the velocity on social media platforms. How can we trust

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<v Speaker 1>tech companies to do the right thing here?

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<v Speaker 2>Well, that's where I don't think it just has to

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<v Speaker 2>be a hey, we're going to trust you, and I'm

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<v Speaker 2>going to sit here and watch them. Be a spectator,

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<v Speaker 2>and I hope you get it right. Whether it's it's

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<v Speaker 2>asking that of tech companies or it's asking that of governments,

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<v Speaker 2>it's well, then, what is the role of a customer,

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<v Speaker 2>what is the role of an end user, and what

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<v Speaker 2>is the role of a citizen in getting involved? Now

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<v Speaker 2>on the front end in driving that conversation.

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<v Speaker 3>Hey, Michelle, we only have thirty seconds left. Should the

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<v Speaker 3>US force TikTok's parent company to divest TikTok.

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<v Speaker 2>Well, the US is giving them the option to divest

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<v Speaker 2>or be banned. But yes, because Byte dances a Chinese company,

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<v Speaker 2>they're required by law to provide information to the Chinese

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<v Speaker 2>Communist Party, and it's a surveillance platform, and it's an

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<v Speaker 2>influence operations platform, so it does a national security issue.

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<v Speaker 1>I feel like we scratched the surface. We come back soon.

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<v Speaker 1>Tim's angry. I will get like three questions in a

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<v Speaker 1>row with you again.

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<v Speaker 2>We have a ton to talk about.

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<v Speaker 1>Come back, come back, come back. Michelle Gaida, CEO of

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<v Speaker 1>Crock Institute Protect Diplomacy over at Purdue joining us from Austin, Texas.

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<v Speaker 1>I'm sorry, it's excited because I want.

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<v Speaker 3>To talk to her too.

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<v Speaker 4>How do I trust them?

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<v Speaker 3>We'll call her.

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<v Speaker 1>After to do the right thing. All right, Now, he's

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<v Speaker 1>not even going to listen to me. All right, you're

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<v Speaker 1>listening and watching Pootburg Business Week.

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<v Speaker 3>Well, another piece of the Biden administration sweeping policy response

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<v Speaker 3>to climate change fell into place last week. That was

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<v Speaker 3>when the SEC voted to approve highly anticipated climate disclosure

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<v Speaker 3>requirements for public companies.

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<v Speaker 1>That's right, Tim, The SEC's new rule is groundbreaking and

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<v Speaker 1>that it requires public companies to make certain climate disclosures,

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<v Speaker 1>mainly reporting of greenhouse gas emissions. For the first time,

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<v Speaker 1>large public companies will be required to disclose their direct

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<v Speaker 1>or scope on and Script two emissions. Notably, they must

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<v Speaker 1>do so only if they deem them material significant to

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<v Speaker 1>their bottom line.

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<v Speaker 4>That's what that means.

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<v Speaker 3>Okay, So all that said, some environmental advocates say it

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<v Speaker 3>doesn't go far enough. Leslie Libruto is Managing director of

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<v Speaker 3>Sustainable Finance at the Environmental Defense Fund. It's a nonprofit

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<v Speaker 3>that works to address climate change, which it calls the

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<v Speaker 3>greatest challenge of our time. She joins us from London today, Leslie,

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<v Speaker 3>do you think the SEC climate disclosure requirement goes far enough?

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<v Speaker 4>Hey, guys, great to be here. To be honest, this

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<v Speaker 4>SEC rolling it's a positive development for businesses and investors.

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<v Speaker 4>We needed this step, it was overdue, and finally it's

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<v Speaker 4>a chance to bring the United States to a point

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<v Speaker 4>of consistency and rigor in disclosures that we hadn't seen before.

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<v Speaker 4>So we obviously the Commission will go further, but this

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<v Speaker 4>is a foundational step that we need to take in

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<v Speaker 4>order to start moving us.

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<v Speaker 3>How much further, do you want the SEC to mandate

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<v Speaker 3>that companies disclose emissions within their supply chain, because that's

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<v Speaker 3>what a lot of critics are pushing back on right now.

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<v Speaker 4>Yeah, I mean, look, we need to start somewhere. And

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<v Speaker 4>at this point, when we see all of the considerations

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<v Speaker 4>being taken into account, climate risk is financial risk, and

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<v Speaker 4>this is where we need to start. And you know,

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<v Speaker 4>the SEC is long required disclosures across a number of

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<v Speaker 4>different metrics, and finally we're seeing a step forward and

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<v Speaker 4>really getting public companies towards they need to be. And

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<v Speaker 4>with the tunnel lined disclosures, it also gets smaller companies,

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<v Speaker 4>gives them a chance to really get up to speed,

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<v Speaker 4>and then finally we can evolve on this role over time.

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<v Speaker 4>But for now, this is where we need to start

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<v Speaker 4>to get the ball moving.

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<v Speaker 1>I mean, this is what ESG was supposed to be.

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<v Speaker 1>I think about right to really understand environmental social governance

0:11:18.200 --> 0:11:23.079
<v Speaker 1>issues and what risks financially materially they are for companies.

0:11:23.320 --> 0:11:27.040
<v Speaker 1>Having said that, what the SEC is doing and Chairgantler

0:11:27.160 --> 0:11:31.000
<v Speaker 1>is doing, we're now getting a standardization right, so apples

0:11:31.000 --> 0:11:34.840
<v Speaker 1>to apples from company to company, but it's.

0:11:34.760 --> 0:11:37.320
<v Speaker 4>More than that it's apples to apples, but finally we

0:11:37.360 --> 0:11:41.160
<v Speaker 4>have an ability to foster transparency. It means that investors

0:11:41.200 --> 0:11:43.760
<v Speaker 4>and people like you and me can finally start seeing

0:11:43.760 --> 0:11:46.240
<v Speaker 4>the data. As you said, apples to apples. But it

0:11:46.240 --> 0:11:48.600
<v Speaker 4>also builds a more resilient market. Right if you're in

0:11:48.640 --> 0:11:51.320
<v Speaker 4>Louisiana and you're a company and you're not thinking about flooding,

0:11:51.679 --> 0:11:54.280
<v Speaker 4>you're not thinking about the material risks to your business

0:11:54.320 --> 0:11:57.600
<v Speaker 4>that are going to affect ultimately your resilience and your growth.

0:11:58.360 --> 0:12:00.400
<v Speaker 4>And you know, imagine if your a utility company and

0:12:00.440 --> 0:12:03.240
<v Speaker 4>you're not thinking about wildfires. I mean, if you look

0:12:03.280 --> 0:12:05.920
<v Speaker 4>at the data, the US alone has suffered six hundred

0:12:06.040 --> 0:12:09.320
<v Speaker 4>billion dollars in damages from just about one hundred weather

0:12:09.480 --> 0:12:12.160
<v Speaker 4>months in the last five years alone. These are things

0:12:12.160 --> 0:12:14.880
<v Speaker 4>that we're trying to start taking to consideration where we're

0:12:14.880 --> 0:12:17.880
<v Speaker 4>looking at businesses and evaluating, you know, should I invest

0:12:17.920 --> 0:12:20.360
<v Speaker 4>in this one or that one. We now have data

0:12:20.520 --> 0:12:23.679
<v Speaker 4>around just climate risk, which again is a financial risk

0:12:23.920 --> 0:12:27.000
<v Speaker 4>that can help us make better decisions, help investors figure

0:12:27.000 --> 0:12:30.120
<v Speaker 4>out where to allocate capital, and again help folks from

0:12:30.160 --> 0:12:32.120
<v Speaker 4>Main Street to Wall Street figure out where to put

0:12:32.120 --> 0:12:32.440
<v Speaker 4>their money.

0:12:32.600 --> 0:12:35.400
<v Speaker 1>Leslie, we talk scope on Scope two emissions. But my

0:12:35.480 --> 0:12:38.920
<v Speaker 1>understanding is the biggest change from the proposed rules initially

0:12:39.280 --> 0:12:42.280
<v Speaker 1>that public companies are no longer required to report Scope

0:12:42.320 --> 0:12:45.240
<v Speaker 1>three emissions are those from the supply chain and the

0:12:45.280 --> 0:12:48.520
<v Speaker 1>downstream use of products, even though that these often represent

0:12:48.840 --> 0:12:52.160
<v Speaker 1>the largest portion of a company's greenhouse gas emissions. So

0:12:52.800 --> 0:12:56.079
<v Speaker 1>is that kind of a big bummer to be quite honest.

0:12:56.600 --> 0:12:59.160
<v Speaker 4>I mean, look again, we got to start somewhere, right,

0:12:59.240 --> 0:13:01.400
<v Speaker 4>and when we look where we got to start in

0:13:01.440 --> 0:13:04.240
<v Speaker 4>the United States, we're asking public companies to now do

0:13:04.320 --> 0:13:06.959
<v Speaker 4>something that. Mind you, ninety nine percent of the S

0:13:07.000 --> 0:13:09.800
<v Speaker 4>and P five hundred already report on some metrics around

0:13:09.840 --> 0:13:13.880
<v Speaker 4>sustainability and non financial metrics in general. So for us,

0:13:13.920 --> 0:13:15.640
<v Speaker 4>it's a chance to really brand us up to speed

0:13:15.679 --> 0:13:18.440
<v Speaker 4>and then we hope the SEC can keep evolving on

0:13:18.520 --> 0:13:20.600
<v Speaker 4>this decision over time. Right, this isn't a one and

0:13:20.640 --> 0:13:23.600
<v Speaker 4>done deal. We have time to keep evolving this and

0:13:23.760 --> 0:13:25.920
<v Speaker 4>you know, bring the United States to you know, where

0:13:25.920 --> 0:13:28.199
<v Speaker 4>it wants to be in terms of fully encompassing climate

0:13:28.280 --> 0:13:28.840
<v Speaker 4>risk as one.

0:13:28.960 --> 0:13:31.560
<v Speaker 3>When do we see this move the needle for investors, like,

0:13:31.600 --> 0:13:33.920
<v Speaker 3>when do we start to see this type of data

0:13:33.960 --> 0:13:36.880
<v Speaker 3>come out and actually move a company stock price.

0:13:38.200 --> 0:13:40.160
<v Speaker 4>You know, a lot of this data already exists. We

0:13:40.200 --> 0:13:43.720
<v Speaker 4>talked to one investor. They have to collect twenty five

0:13:43.880 --> 0:13:46.400
<v Speaker 4>thousand data points right now just to get a view

0:13:46.440 --> 0:13:49.880
<v Speaker 4>of climate risk, and it's oftentimes really inconsistent. Because this

0:13:50.000 --> 0:13:51.840
<v Speaker 4>rule is taking effect, and we can start, you know,

0:13:51.880 --> 0:13:54.760
<v Speaker 4>taking time in about a year, those twenty five thousand

0:13:54.840 --> 0:13:57.200
<v Speaker 4>data points that might be inaccurate, we can start seeing

0:13:57.200 --> 0:14:00.360
<v Speaker 4>them streamlined and be reliable. So again investors can start

0:14:00.400 --> 0:14:03.280
<v Speaker 4>looking apples to apples and we can start seeing not

0:14:03.320 --> 0:14:05.319
<v Speaker 4>only what are the risks, but how are these companies

0:14:05.360 --> 0:14:07.600
<v Speaker 4>mitigating them as early as next year? Right?

0:14:07.640 --> 0:14:11.360
<v Speaker 1>And to be fair, I mean this is a leslie.

0:14:11.400 --> 0:14:17.679
<v Speaker 1>This is about how climate can impact financially or does

0:14:17.720 --> 0:14:20.560
<v Speaker 1>it have a financial material financial impact on a company.

0:14:21.000 --> 0:14:24.560
<v Speaker 1>That's what this is about. This isn't necessarily assuming that

0:14:24.960 --> 0:14:30.160
<v Speaker 1>it's going to force companies to do something better for

0:14:30.200 --> 0:14:30.800
<v Speaker 1>the climate.

0:14:30.960 --> 0:14:34.920
<v Speaker 4>Is that fair? This is all about managing risk. It

0:14:35.000 --> 0:14:38.760
<v Speaker 4>is asking companies to say, what material risks have you

0:14:38.880 --> 0:14:41.040
<v Speaker 4>identified and what are you going to do about it?

0:14:41.360 --> 0:14:44.120
<v Speaker 4>So when we're reading reports an less reports looking at

0:14:44.160 --> 0:14:46.720
<v Speaker 4>a company, we can say, oh, they've considered these things

0:14:46.720 --> 0:14:50.400
<v Speaker 4>that are straight up risks to the company, and we

0:14:50.480 --> 0:14:53.000
<v Speaker 4>know that they're mitigating them. Again, I mentioned the stat

0:14:53.000 --> 0:14:55.840
<v Speaker 4>about six hundred million dollars in damages from weather events.

0:14:56.120 --> 0:14:58.320
<v Speaker 4>This is real stuff. These are real risks that we're

0:14:58.320 --> 0:15:00.680
<v Speaker 4>talking about, and this gives us a chance to look

0:15:00.680 --> 0:15:03.320
<v Speaker 4>at those and say, did this company consider them? Are

0:15:03.400 --> 0:15:05.800
<v Speaker 4>they looking at the things that pose significant risks of

0:15:05.800 --> 0:15:08.800
<v Speaker 4>their business that could affect me and you and investors

0:15:09.120 --> 0:15:12.720
<v Speaker 4>in making decisions about allocating capital, where to put more money,

0:15:12.920 --> 0:15:14.960
<v Speaker 4>and how to shift kind of you know, what we're

0:15:14.960 --> 0:15:17.760
<v Speaker 4>seeing as the future for a resilient market in the

0:15:17.840 --> 0:15:18.280
<v Speaker 4>United States.

0:15:18.320 --> 0:15:19.960
<v Speaker 1>Well, having said that, I don't know what work you

0:15:20.000 --> 0:15:22.320
<v Speaker 1>guys have done over at the EDF, but I do

0:15:22.400 --> 0:15:26.120
<v Speaker 1>wonder in terms of, you know, the insurance industry, Tim

0:15:26.160 --> 0:15:28.000
<v Speaker 1>and I in our Bloomberg News team, they have done

0:15:28.520 --> 0:15:31.720
<v Speaker 1>a lot of reporting about was it home insurance in

0:15:31.720 --> 0:15:35.520
<v Speaker 1>California or Florida where insurers are just kind of backing

0:15:35.520 --> 0:15:38.480
<v Speaker 1>off because of the costs. Have you guys done works

0:15:38.480 --> 0:15:41.560
<v Speaker 1>where you where you feel like certain industries, whether it's insurance,

0:15:41.600 --> 0:15:44.760
<v Speaker 1>whether it's home builders, I don't know what where they are.

0:15:44.960 --> 0:15:47.400
<v Speaker 1>You know, once we get a clearer picture, we might

0:15:47.440 --> 0:15:51.440
<v Speaker 1>find that there's a lot more of climate related material

0:15:51.480 --> 0:15:55.200
<v Speaker 1>effects on their businesses that maybe has been way under reported.

0:15:56.880 --> 0:15:59.200
<v Speaker 4>Yeah, you know, our team we are constantly trying to

0:15:59.200 --> 0:16:02.480
<v Speaker 4>equip the final community with independent analysis of what they

0:16:02.520 --> 0:16:04.680
<v Speaker 4>need most to make decisions around climate risk. And this

0:16:04.760 --> 0:16:08.840
<v Speaker 4>completely includes the insurance markets as well. I mean you

0:16:08.960 --> 0:16:12.000
<v Speaker 4>said it so well right. We're seeing insurance shifts all

0:16:12.080 --> 0:16:15.680
<v Speaker 4>over the place, people retracting from markets, premiums going up,

0:16:16.040 --> 0:16:17.480
<v Speaker 4>and a lot of it us to do with. We

0:16:17.560 --> 0:16:20.880
<v Speaker 4>have no idea how to price and assess the risk

0:16:20.960 --> 0:16:24.720
<v Speaker 4>that climate faces poses on businesses. So when we look

0:16:24.760 --> 0:16:27.640
<v Speaker 4>at the insurance market, for example, it's a great chance

0:16:27.640 --> 0:16:30.040
<v Speaker 4>for us to say, how are insurers thinking about this,

0:16:30.480 --> 0:16:33.760
<v Speaker 4>Where can alternative tools step in to build resiliency, and

0:16:33.760 --> 0:16:36.240
<v Speaker 4>how do we stop kind of fueling the beasts, so

0:16:36.320 --> 0:16:39.600
<v Speaker 4>to speak, by making decisions that put consumers at risks

0:16:39.800 --> 0:16:42.280
<v Speaker 4>like building homes and flood zones. Right, And if we

0:16:42.280 --> 0:16:45.600
<v Speaker 4>have a chance to start assessing data that's apples to apples,

0:16:45.760 --> 0:16:48.240
<v Speaker 4>we can start making better decisions that again are working

0:16:48.280 --> 0:16:50.200
<v Speaker 4>for just the general public and you and me.

0:16:50.720 --> 0:16:53.520
<v Speaker 3>You know what's so interesting, Carol, I'm looking at shares

0:16:53.560 --> 0:16:55.760
<v Speaker 3>at BIL resorts. They're right now down five percent. This

0:16:55.880 --> 0:16:58.760
<v Speaker 3>is a company that owns many mountains throughout the United States,

0:16:58.800 --> 0:17:01.520
<v Speaker 3>some outside of the US. The company came out with

0:17:01.760 --> 0:17:06.320
<v Speaker 3>earnings and said that they had forty what is it,

0:17:06.560 --> 0:17:10.960
<v Speaker 3>unfavorable conditions forty two percent lower snowfall across the entire

0:17:11.040 --> 0:17:14.720
<v Speaker 3>western North American resorts through January compared to the same

0:17:14.720 --> 0:17:15.840
<v Speaker 3>period a year prior.

0:17:15.920 --> 0:17:17.680
<v Speaker 1>So this would play right into it exactly.

0:17:17.720 --> 0:17:19.320
<v Speaker 3>I mean, this is we're talking about. I mean, this

0:17:19.400 --> 0:17:22.160
<v Speaker 3>is a company that has sample yeah, and that it's

0:17:22.240 --> 0:17:25.199
<v Speaker 3>like because of climate change, because of our shifting climate,

0:17:25.480 --> 0:17:27.240
<v Speaker 3>they're seeing real, real detriment.

0:17:27.440 --> 0:17:29.600
<v Speaker 1>No, and that's so Leslie, this is the kind of

0:17:29.600 --> 0:17:31.560
<v Speaker 1>thing that we're talking about. You're nodding your head. Is

0:17:31.880 --> 0:17:36.560
<v Speaker 1>California though, the holy grail? Because when it comes to rules,

0:17:37.720 --> 0:17:40.119
<v Speaker 1>you know, in terms of you know, in regards I

0:17:40.119 --> 0:17:42.359
<v Speaker 1>guess to some of the climate if you will, or

0:17:42.400 --> 0:17:46.560
<v Speaker 1>sustainability reporting requirements, is California kind of the holy grail

0:17:46.600 --> 0:17:48.080
<v Speaker 1>in terms of where we need to go with this.

0:17:48.160 --> 0:17:50.119
<v Speaker 1>I know you say it's important, it's great, it's first step,

0:17:50.520 --> 0:17:52.880
<v Speaker 1>but like, what's what's the endgame in your view?

0:17:54.680 --> 0:17:58.040
<v Speaker 4>You know, we've seen different regulations come through in different states,

0:17:58.080 --> 0:18:00.760
<v Speaker 4>and this ruling is a chance to really streamline what

0:18:00.760 --> 0:18:04.280
<v Speaker 4>we're seeing. Obviously, different states have adopted different kind of

0:18:05.280 --> 0:18:07.000
<v Speaker 4>rigor in terms of, you know, where they want to

0:18:07.000 --> 0:18:10.199
<v Speaker 4>see on climate reporting. Finally, because the SEC is an

0:18:10.240 --> 0:18:13.880
<v Speaker 4>independent body, we're seeing a streamlining of the data that's

0:18:13.920 --> 0:18:16.040
<v Speaker 4>going to be coming through. So it's a real chance

0:18:16.080 --> 0:18:19.359
<v Speaker 4>to take the US to a place that is consistent.

0:18:19.560 --> 0:18:21.880
<v Speaker 4>Right and we've already seen sort of some of these

0:18:22.160 --> 0:18:27.320
<v Speaker 4>multinational disclosure frameworks in other markets Canada, Australia, the EU, China.

0:18:27.640 --> 0:18:30.280
<v Speaker 4>The US now has this as well to kind of

0:18:30.280 --> 0:18:32.879
<v Speaker 4>bring us to a speed where it's international and global.

0:18:33.119 --> 0:18:35.320
<v Speaker 3>We only have ten seconds left. But if the election,

0:18:35.880 --> 0:18:39.080
<v Speaker 3>if President Trump wins the election in November, what happens

0:18:39.119 --> 0:18:41.399
<v Speaker 3>to these rules or the way you think about things.

0:18:42.560 --> 0:18:45.360
<v Speaker 4>I mean, fortunately, again the SEC is an independent agency

0:18:45.440 --> 0:18:48.560
<v Speaker 4>acting on a mandate from Congress to protect investors at

0:18:48.600 --> 0:18:51.880
<v Speaker 4>the end of the day, and meant you're not concerned, Hey,

0:18:52.200 --> 0:18:54.320
<v Speaker 4>you know, you don't know. But again, because they're an

0:18:54.320 --> 0:18:58.560
<v Speaker 4>independent agency, we're feeling that these disclosures hopefully figure Scots

0:18:58.560 --> 0:18:58.840
<v Speaker 4>for hear.

0:18:58.840 --> 0:19:01.919
<v Speaker 1>Today leave it on that note, Hele Leslie, thank you

0:19:01.920 --> 0:19:05.440
<v Speaker 1>so much. Leslie Libruto, Managing director of sustainable Finance at

0:19:05.440 --> 0:19:08.479
<v Speaker 1>the Environmental Defense Fund, joining us right here in New

0:19:08.560 --> 0:19:09.040
<v Speaker 1>York City,