WEBVTT - Why Women Will Save the Environment 0:00:00.160 --> 0:00:04.160 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:00:04.240 --> 0:00:08.360 Quick Takes Tim Stinovich on Bloomberg Radio. Well, our next 0:00:08.400 --> 0:00:10.440 guest in her team are on a mission to centralize 0:00:10.440 --> 0:00:13.440 the role of women as economic, environmental and social change 0:00:13.440 --> 0:00:16.200 makers who are creating a high growth future. I'm thinking 0:00:16.239 --> 0:00:18.759 she has some thoughts on how and what is I 0:00:18.800 --> 0:00:22.799 think safe to say, Mike Regan, still largely a man's world, 0:00:23.120 --> 0:00:25.400 how women can do it all better? Not my house. 0:00:25.440 --> 0:00:28.680 I've got three teenage girls, a wife five. It's being 0:00:28.720 --> 0:00:30.880 the dog. Are the only emails in the in the household, 0:00:30.960 --> 0:00:34.199 so you know, everything's local. I'm I'm I'm in a 0:00:34.760 --> 0:00:37.280 drowning in a women's world myself, and I wouldn't have 0:00:37.280 --> 0:00:38.800 it any other way. By the way, it sounds like 0:00:38.840 --> 0:00:42.839 my husband um patients. Merrimaid Ball is founder and CEO 0:00:43.040 --> 0:00:45.440 of Women of the World Endowment. It's a global endowment 0:00:45.600 --> 0:00:49.320 focused on gender lens investing. She currently leads the fixed 0:00:49.360 --> 0:00:51.920 income business with a current portfolio more than three billion dollars. 0:00:51.920 --> 0:00:55.320 She's got a new book out too, called The XX Edge, 0:00:55.400 --> 0:00:59.440 Unlocking Higher Returns and Lower Risk. The XX resembling really 0:00:59.440 --> 0:01:02.560 representing the two chromosomes, noting the female gender. So we 0:01:02.560 --> 0:01:03.960 do want to bring her and she joins us via 0:01:04.040 --> 0:01:08.039 zoom from Martha's Vineyard. UM patients, So great to have 0:01:08.080 --> 0:01:10.959 you here with Mike Reagan and myself. And I feel like, 0:01:11.440 --> 0:01:14.119 first of all, welcome, welcome. Uh. And in a world 0:01:14.120 --> 0:01:16.920 where we are talking about strains and resources, why or 0:01:16.920 --> 0:01:19.759 why do we continue to untap what is a great 0:01:19.920 --> 0:01:24.759 resource that I'm talking about women specifically? Fantastic Caroline, Mike, 0:01:24.840 --> 0:01:26.959 thank you very much for having me. This is an 0:01:26.959 --> 0:01:30.880 exciting time. Um. You know, the answer to that question 0:01:31.120 --> 0:01:35.560 is one that we work really hard to not in 0:01:35.600 --> 0:01:37.680 this book. The exexcit and locking higher in terms and 0:01:37.720 --> 0:01:41.679 law risk UM. Women approximate to challenges, and so there 0:01:41.720 --> 0:01:45.240 should approximate solutions driving those solutions that are going to 0:01:45.240 --> 0:01:48.160 get us out of a bunch of challenges that we're 0:01:48.160 --> 0:01:56.000 experiencing today, whether it's climate related challenges in UM, economic crisis, conflict, etcetera. Right, Um, 0:01:56.160 --> 0:01:59.680 And so it's a great question. I don't know that 0:01:59.720 --> 0:02:02.320 we have answers to that quite yet. Well, and I 0:02:02.360 --> 0:02:05.800 want to follow because you know, everyone knows who's listening 0:02:05.840 --> 0:02:08.680 and watching Bloomberg Business Week. Mike knows that there have 0:02:08.720 --> 0:02:11.400 been numerous studies, whether it's McKinsey and others that just 0:02:11.480 --> 0:02:15.240 talk about the importance of diversity overall, but women specifically, 0:02:15.240 --> 0:02:18.920 whether it's on boards and senior positions, financial performances from funds, 0:02:18.960 --> 0:02:21.840 so you know, in terms of companies. So why is it, 0:02:22.600 --> 0:02:25.680 you know, you know, why do we not when we 0:02:25.800 --> 0:02:29.600 know that things can be even just financially performance better, 0:02:30.160 --> 0:02:35.200 do we not embrace UM having more women involved? Yeah, 0:02:35.240 --> 0:02:38.040 and and Carol, the issue is actually more profound than 0:02:38.280 --> 0:02:41.280 than you've just stated. It's it's UM. So we know 0:02:41.360 --> 0:02:44.920 that nine eight percent of capital is that is under 0:02:44.919 --> 0:02:49.760 management today is managed by men. UM. Yet we also 0:02:49.800 --> 0:02:53.239 know that when you have gender diverse teams allocating capital 0:02:53.720 --> 0:02:58.079 or making any decision more likely to actually get out 0:02:58.080 --> 0:03:02.040 performance in profitability. You're likely to mitigate downside this better, 0:03:02.480 --> 0:03:05.880 You're likely to have UM your dollar doing more than 0:03:05.960 --> 0:03:08.960 one thing at any given time because women prioritize, yes, 0:03:09.120 --> 0:03:12.120 making financial returns that are really important, but also the 0:03:12.200 --> 0:03:15.520 opportunity to drive for other types of changes. And so 0:03:16.040 --> 0:03:20.840 to your point, um, why do we not see change? UM? 0:03:20.880 --> 0:03:24.799 I think that you know to be UM to get 0:03:24.840 --> 0:03:27.600 to a point where we're talking about current what has 0:03:27.639 --> 0:03:31.360 been happening in legislation currently, for instance, the Inflation Reduction 0:03:31.400 --> 0:03:35.240 Act UM, it's looking to solve inflationary problems that are 0:03:35.320 --> 0:03:39.000 leading to potential for recession, etcetera. But it's also looking 0:03:39.040 --> 0:03:43.280 to solve climate climate issues, climate related issues. And here 0:03:43.320 --> 0:03:46.280 we know that when women are in these decision making 0:03:46.400 --> 0:03:50.960 rooms UM, whether it's ceased with positions or on boards, 0:03:51.200 --> 0:03:55.640 we actually get better upcomes all around. Companies have better 0:03:56.160 --> 0:04:00.120 policies and standards to adea to UM, we have at 0:04:00.120 --> 0:04:04.320 our disclosures with better tracking UM, and we also have 0:04:04.840 --> 0:04:10.320 better performance. So it's it is interesting that with the 0:04:10.400 --> 0:04:13.520 numbers telling us that it is you are going to 0:04:13.560 --> 0:04:17.120 make more money and your reference to my Kinson report 0:04:17.320 --> 0:04:20.440 they did they did a study in which show that 0:04:20.480 --> 0:04:24.400 if we just if we had every every country in 0:04:24.440 --> 0:04:27.839 the study that they had of ninety countries just doing 0:04:28.120 --> 0:04:32.320 better to improve gender gender diversity in in decision making, 0:04:32.880 --> 0:04:36.240 the world could actually have a twenty five trillion dollar 0:04:36.800 --> 0:04:41.000 gained to global GDP and even their conservative studies pointed 0:04:41.040 --> 0:04:46.599 to twelve trillion dollar game. Yeah, I'll take that, but 0:04:46.680 --> 0:04:48.920 it's true though, I think you know, if you want 0:04:48.960 --> 0:04:52.480 to affect change in the world through the capital markets. Um, 0:04:52.600 --> 0:04:54.600 you have to go hand in hand with you know, 0:04:54.880 --> 0:04:58.039 positive change and uh something on the P and L 0:04:58.080 --> 0:05:01.760 state you know, good return turns uh to back it up. 0:05:01.800 --> 0:05:04.239 And so the focus a lot of times patients obviously 0:05:04.240 --> 0:05:07.560 goes to E s G. We're investing through a sort 0:05:07.600 --> 0:05:12.240 of environmental, social and governance lens. I think what's kind 0:05:12.240 --> 0:05:14.719 of alarming this year's we've seen a big backlash to 0:05:14.800 --> 0:05:17.479 that from a lot of politicians, you know, the quote 0:05:17.560 --> 0:05:21.320 unquote anti woke type of politicians. Do you think it's 0:05:21.400 --> 0:05:23.640 leaving a mark on the industry? Is Is there any 0:05:23.720 --> 0:05:25.920 damage being done to the notion of E s G 0:05:26.120 --> 0:05:30.520 from all this backlash we've seen so unfortunately not um, Well, unfortunately, yes, 0:05:30.920 --> 0:05:35.960 Uh there is a backlash and it is um resulting 0:05:36.000 --> 0:05:39.640 in some in some you know headwinds. But here's what 0:05:39.680 --> 0:05:43.360 I have to say, Uh, Nature, Mother nature is doing 0:05:43.360 --> 0:05:46.039 what it needs to do. We have fires in California, 0:05:46.520 --> 0:05:49.679 you know, floods in Australia, fires in Europe, etcetera. Nature 0:05:49.720 --> 0:05:54.159 is telling us that we need to do something. And 0:05:54.279 --> 0:05:57.080 E s G investing has a place and it is 0:05:57.120 --> 0:06:01.520 a place that can be both financial and impact related. 0:06:02.240 --> 0:06:04.560 All right, let's get back to our guest and continue 0:06:04.600 --> 0:06:08.200 our conversation. Still with us is Patience Marl Ball, founder 0:06:08.200 --> 0:06:10.880 and chief executive officer of the Women of the World Endowment. 0:06:10.960 --> 0:06:15.520 She's still with us via zoom from Martha's Vineyards. So, um, patients, 0:06:15.680 --> 0:06:19.599 one of the things I wonder is, you know, the 0:06:19.680 --> 0:06:22.240 role of women, Like, what do we lose by not 0:06:22.360 --> 0:06:25.400 doing so incorporating more women into our world in terms 0:06:25.400 --> 0:06:28.919 of growth, opportunity, political progress, climate change. I mean, some 0:06:29.000 --> 0:06:31.240 of the it's amazing. These are the things we talked 0:06:31.279 --> 0:06:34.080 to on a daily basis with so many of our guests. 0:06:34.120 --> 0:06:36.880 So what are we losing by not bringing more women 0:06:36.880 --> 0:06:42.640 into the fold? Um? So this is a really good question, Carol. 0:06:42.720 --> 0:06:45.640 And you know in the book that we just wrote, 0:06:45.720 --> 0:06:47.960 we looked at what it is that makes men and 0:06:48.000 --> 0:06:52.120 women different. They're not an equal unit of productivity and 0:06:52.160 --> 0:06:54.279 what are those things that are different? And it is 0:06:54.600 --> 0:06:58.120 one the long view. Women tend to prioritize the long 0:06:58.200 --> 0:07:01.160 view over short term gains. The tend to have collaborative 0:07:01.400 --> 0:07:04.880 leadership styles and tend to be more risk aware, and 0:07:05.480 --> 0:07:08.600 when it comes to the challenges that we're facing, they 0:07:08.640 --> 0:07:11.640 also tend to be more approximate to those challenges, and 0:07:11.680 --> 0:07:15.440 so that's an opportunity set that we're losing when we 0:07:15.480 --> 0:07:18.880 don't have them in decision making rooms, because that ability 0:07:18.920 --> 0:07:21.480 to see around the corners is just as needed as 0:07:21.920 --> 0:07:24.679 the ability to you know, to six short term gains, 0:07:25.120 --> 0:07:28.760 and what it leads to is really a loss in 0:07:29.440 --> 0:07:32.960 you know, our performance over time in terms of profitability, 0:07:33.200 --> 0:07:36.480 but also the ability to mitigate risk in a much 0:07:36.520 --> 0:07:40.800 more structured and thoughtful way. You know, patience. I was 0:07:41.200 --> 0:07:44.080 joking with Carol earlier. You know, when the notion of 0:07:44.160 --> 0:07:47.160 women leading in the future comes up. I have three daughters, 0:07:47.160 --> 0:07:50.560 so I say I'm on board completely. You know. My 0:07:50.720 --> 0:07:53.640 joke with them is always, I'll pay for your college 0:07:53.920 --> 0:07:56.160 as long as I get a room in your beach house. 0:07:56.320 --> 0:07:59.000 One day and I'm looking at you here on zoom, 0:07:59.000 --> 0:08:00.440 and i gotta say, you have a beauty full beach 0:08:00.480 --> 0:08:04.160 house up there in Bartha's vineyards. So if if, if 0:08:04.160 --> 0:08:07.240 you had a few minutes to talk to my daughters, uh, 0:08:07.560 --> 0:08:11.520 based on your twenty plus years, I believe of experience 0:08:11.560 --> 0:08:16.040 in capital markets UM in a very competitive male dominated field. 0:08:16.080 --> 0:08:20.000 I know my one daughter is thinking about majoring in 0:08:20.040 --> 0:08:23.720 finance and maybe getting into the industry. What's the secret 0:08:23.880 --> 0:08:27.840 to success for a woman, you know, especially one coming 0:08:27.880 --> 0:08:30.280 of age in this sort of crazy world we live 0:08:30.320 --> 0:08:32.480 in right now? How do you get there? How do 0:08:32.520 --> 0:08:35.600 you maintain and succeed and do it in the right 0:08:35.640 --> 0:08:40.480 way with a clear conscience. Yeah, so so, Mike, The 0:08:40.520 --> 0:08:42.200 first thing that I would actually say is is a 0:08:42.240 --> 0:08:44.240 conversation with you, and then I would have a conversation 0:08:44.280 --> 0:08:47.520 with your Daughter's conversation with you would go like this, 0:08:47.760 --> 0:08:50.520 that you know, the way that you believe your daughters 0:08:50.520 --> 0:08:54.280 are rock stars in at home, whether it's your wife, um, 0:08:54.320 --> 0:08:56.760 and the fact that you're very comfortable with the decisions 0:08:56.800 --> 0:08:59.840 being made by them and you following you. You know, 0:09:00.040 --> 0:09:02.400 we need to have men taking that into the workplace. 0:09:02.760 --> 0:09:05.640 It is incredibly interesting how men are very comfortable with 0:09:05.679 --> 0:09:08.760 women taking over all kinds of things in one realm 0:09:08.800 --> 0:09:12.800 of their lives, but not as comfortable in another realm 0:09:12.840 --> 0:09:16.400 and in the workplace. That is, and and that's part 0:09:16.400 --> 0:09:19.719 of the opportunity that the world loses. You know that 0:09:19.760 --> 0:09:22.120 your your daughter has all the traits that I just 0:09:22.679 --> 0:09:27.400 um elaborated on long view collaborative way of working, she's 0:09:27.480 --> 0:09:30.720 more risk away, etcetera. Why would you know a business 0:09:30.760 --> 0:09:33.839 not want that in the room. And to your daughter, 0:09:34.160 --> 0:09:35.880 I would say that if she wants to come into 0:09:35.920 --> 0:09:37.760 financial markets, you know I've been in it for more 0:09:37.840 --> 0:09:40.040 more than twenty five years, and you know I'm now 0:09:40.080 --> 0:09:43.520 in my fifties. The world is so much better today, 0:09:43.720 --> 0:09:46.600 and where we need to be in capital markets is 0:09:46.640 --> 0:09:50.440 to create spaces where we're not just sticking boxes. So 0:09:50.480 --> 0:09:52.720 we have this many women come in and and we 0:09:52.800 --> 0:09:56.000 take that box, but really be very intentional about what 0:09:56.080 --> 0:09:59.920 seats we're putting them in and what we The key 0:10:00.120 --> 0:10:02.520 to make, you know our book, the ex extedge is 0:10:02.559 --> 0:10:05.719 that when you put them in acid allocation seats, when 0:10:05.720 --> 0:10:08.400 you put them in those decisions making seats, you actually 0:10:08.440 --> 0:10:11.880 are going to have our performance and over time greater 0:10:12.120 --> 0:10:15.160 economic pie for every for everybody. That's what you That's 0:10:15.160 --> 0:10:17.480 the magic that your daughter will bring to whatever company 0:10:17.559 --> 0:10:20.920 she ends up joining. Patients gotta be quick twenty five seconds. 0:10:21.000 --> 0:10:25.000 Investment dollars always find their way to opportunity and pay off. 0:10:25.040 --> 0:10:27.280 If women are such great bets, why aren't more women 0:10:27.280 --> 0:10:30.360 in positions of power, managing money, running companies, etcetera. And 0:10:30.559 --> 0:10:32.800 forgive me because we do only have about twenty seconds. 0:10:33.960 --> 0:10:37.520 So Carol, when they do, we see our performance period, right, 0:10:37.679 --> 0:10:41.160 the likely wood for better profitability that I talked about 0:10:41.160 --> 0:10:43.640 in the beginning. So the question is why they're not. 0:10:43.880 --> 0:10:47.520 I think it's because nine percent of capital is being 0:10:47.559 --> 0:10:51.520 managed by men who have a specific world view, the 0:10:51.600 --> 0:10:54.559 specific live journey. And I'm not blaming them, it's it's 0:10:54.600 --> 0:10:57.120 their lives, it's their live journey, and so they will 0:10:57.120 --> 0:10:59.960 allocate capital to the things that you know, speak to 0:11:00.080 --> 0:11:02.679 them based on their lead journeys. That's why we need 0:11:02.880 --> 0:11:07.560 to to to equalize or diversify those seats. Come back 0:11:07.600 --> 0:11:10.160 soon and we'll talk more and continue patients. Marama Ball, 0:11:10.240 --> 0:11:12.520 founder and CEO of Women of the World Endowment. Check 0:11:12.559 --> 0:11:13.720 out her new book as well.