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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot Com, the radio, plus Globo lapt and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Katherine Cowdery. The stock market is edging higher as

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Speaker 1: resource producers rally, along with the prices for medals including gold.

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Speaker 1: Treasuries are declining as the smallest jobs gain in seven

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Speaker 1: months is raising doubts about the economy strength. The Labor

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Speaker 1: Department report showed employers added one hundred sixty thousand workers

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Speaker 1: in April, missing the two hundred thousand jobs that economists estimated.

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Speaker 1: The jobs rate was projected to ease. Instead, it held

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Speaker 1: steady at five percent, while wage growth accelerated. We check

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Speaker 1: the markets every fifteen minutes throughout the trading day on

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Speaker 1: Bloomberg Radio. Down Industrial Average is up fifty three points

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Speaker 1: three tens of a percent, trading at seventeen thousand, seven

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Speaker 1: hundred fourteen. SMP five thundered up three points an eighth

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Speaker 1: of a percent at two thousand fifty three. Then as

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Speaker 1: Jack is up eight points an eighth of a percent

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Speaker 1: at forty seven twenty five. Plus Texas Cinemedia crude oil

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Speaker 1: ups of barrel to about gold is up eighteen dollars

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Speaker 1: thirty cents an ounce at six and the ten year

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Speaker 1: Treasury is down eight thirty seconds with the yield of

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Speaker 1: one point seven seven And that's a Bloomberg business flash.

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Speaker 1: This is taking stock with Gadleen Hayes and Pim Fox

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Speaker 1: on Bloomberg Radio. Impact investing, investing that does more than

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Speaker 1: just look at the bottom line of dollars and cents.

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Speaker 1: It looks also at the bottom line when it comes

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Speaker 1: to the Earth and the Earth's resources. Sustainable investing. Well,

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Speaker 1: here to tell us more is Debrah Winchell, Managing director,

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Speaker 1: Global head of Impact Investing for black Rock. They have

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Speaker 1: over two hundred and twenty five billion dollars of assets

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Speaker 1: under management and they've got a new Impact e t F. Debra,

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Speaker 1: thank you very much for coming into the studio. Appreciate

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Speaker 1: it having me what tell us about what is how

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Speaker 1: do you define impact investing and then maybe you can

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Speaker 1: use that as a lead into the new e t

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Speaker 1: F and how that expresses what you're trying to accomplish.

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Speaker 1: Sure impact investing or sustainable investing, there are lots of

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Speaker 1: names is looking for investment opportunities that have more than

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Speaker 1: just a financial return. They also generate an environmental or

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Speaker 1: a social outcome at the same time. Now, this generation

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Speaker 1: of both the financial outcome and let's just call it

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Speaker 1: well being in general, how do you define that well being?

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Speaker 1: Part of it the goodwill that the company will generate

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Speaker 1: by providing these kinds of sustainable investments well as specifically

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Speaker 1: as possible. And I think that's really the goal of

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Speaker 1: the investments that you see out there, and that we

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Speaker 1: offer very specific definition around a climate outcome, perhaps companies

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Speaker 1: that have lower carbon outcomes or more carbon efficient or

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Speaker 1: other outcomes along social or environmental dimensions. It could be

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Speaker 1: around diversity, or how employees are treated, or the products

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Speaker 1: that they create, health products perhaps that address certain issues

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Speaker 1: that are particularly complicated or that are you know, very

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Speaker 1: serious in the world. Tell us about some research that

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Speaker 1: you've done at black Rock that indicates that the potential investor,

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Speaker 1: who is now let's say a millennial, is very interested

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Speaker 1: and that this is an important factor when they're considering

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Speaker 1: an investment. Right. Well, it's interesting, there are a lot

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Speaker 1: of demographic changes that we're seeing that are really driving

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Speaker 1: this interest in impact investing or sustainable investing. First of all,

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Speaker 1: certainly with millennials. I think you see it in the

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Speaker 1: companies where we work as well as what we see

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Speaker 1: with investors. There's an increasing interest by millennials to make

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Speaker 1: sure that their investments have both a financial return and

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Speaker 1: a social or environmental return, in the same way we

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Speaker 1: see with women who are increasingly inheriting or generating more

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Speaker 1: of the financial assets, and that trend is continuing significantly

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Speaker 1: over the next twenty years. Women also are looking for

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Speaker 1: their dollars to accomplish more than just generate a return.

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Speaker 1: So those are two very significant demographics that are driving

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Speaker 1: this interest and sustainable investing. And I would say that

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Speaker 1: you see it both on the investing front and you

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Speaker 1: see it on the consumer front. You see it really

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Speaker 1: the way that I think millennials and women look at

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Speaker 1: the world today. Your own personal background has both of

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Speaker 1: those components as well, because previously you were at JP Morgan,

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Speaker 1: but also you were the head of the Robin Hood Foundation,

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Speaker 1: and you were also the chief financial officer and high

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Speaker 1: level executive at the Metropolitan Museum of Art. How did

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Speaker 1: those two career paths come together with this impact and

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Speaker 1: sustainable investing. Well, I think first, growing up in finance

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Speaker 1: allowed me to take a very rigorous approach to thinking

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Speaker 1: about problem solving or creating products, both at the met

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Speaker 1: and where I was the CFO, but in a very

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Speaker 1: mission driven organization where we had to think about both

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Speaker 1: um outcomes that were entirely related to the mission of

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Speaker 1: the organization, but also the bottom line so it could

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Speaker 1: be run in a very effective way. At Robin Hood,

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Speaker 1: I had the opportunity to really learn about poverty fighting

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Speaker 1: from just one of the best poverty fighting organizations I

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Speaker 1: think in the in the world, and the what Robin

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Speaker 1: Hood brought was a lens of metrics. How do you

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Speaker 1: measure and compare one intervention to another? And I think

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Speaker 1: putting metrics around something as difficult to measure as poverty

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Speaker 1: fighting was very instrumental in what I could bring to

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Speaker 1: Black Rock. Putting metrics around environmental or social outcomes or

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Speaker 1: impacts give us an idea of the conversation that someone

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Speaker 1: might have with the chief executive of a company that

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Speaker 1: is debating the value of sustainable investing in whether that

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Speaker 1: ought to be part of their corporate message or whether

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Speaker 1: they perceived that to be just a kind of the

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Speaker 1: flavor of the month. How did you have that conversation

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Speaker 1: with the head of the company. Well, companies who are

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Speaker 1: actually the ones who are being invested in UM, I think,

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Speaker 1: are increasingly focused on what their impact is on the world.

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Speaker 1: You see it with consumer companies as they look at

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Speaker 1: their supply chains. You see it with lots of companies

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Speaker 1: around environmental impact. We certainly saw with COP twenty one

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Speaker 1: and the focus on climate that lots of companies are

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Speaker 1: starting to think about both their products and their operations

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Speaker 1: in terms of how they impact the world. And I

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Speaker 1: think companies are becoming very sophisticated about appreciating how consumers, investors,

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Speaker 1: many stakeholders are focused on responsible operations. Do you believe

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Speaker 1: that the companies will be less reticent about supporting sustainable

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Speaker 1: issues that not necessarily have anything directly to do with

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Speaker 1: their company, but just because they are, let's say, a

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Speaker 1: public face, will they be supporting more of these climate

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Speaker 1: change and sustainable investing initiatives. I think companies globally are

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Speaker 1: becoming more sensitive to and most and more supportive of

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Speaker 1: initiatives of this type. I think a lot of companies

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Speaker 1: are actually facing the an impact of environmental or climate impact.

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Speaker 1: It actually affects their bottom line, So I think there's

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Speaker 1: both the operating risks and opportunities the companies see. I

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Speaker 1: think there's the consumer awareness and now increasingly there's the

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Speaker 1: investor focus on these outcomes. I think looking at all

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Speaker 1: these different factors all impacting companies is definitely elevating this

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Speaker 1: as a focus for leadership across the globe. The exchange

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Speaker 1: traded fund give us the details. Well, the most recent

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Speaker 1: fund that we launched is an e t F and

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Speaker 1: exchange traded fund that is tied to the sustained the

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Speaker 1: u N Sustainable Development Goals. So it's an index that

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Speaker 1: constructed around companies derive a large percent of their revenues

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Speaker 1: from activities related to those goals. So it's one of

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Speaker 1: the first times that there's been an investment opportunity where

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Speaker 1: you can invest in companies that are specifically focused on

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Speaker 1: those outcomes. Looking at the u N s TOW Sustainable

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Speaker 1: Development Goals was a very clear way of selecting a

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Speaker 1: set of criteria that already has a large sort of

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Speaker 1: support and following well, just looking at some of the

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Speaker 1: holdings of the Eye Shares Sustainable m s c I

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Speaker 1: Global e t F, taking a look at the lead

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Speaker 1: company value in France, looking at water and treatment facilities,

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Speaker 1: Schneider Electric, big engineering firm A b B, as well

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Speaker 1: as Pierson PLC. I think a pierconis and education company.

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Speaker 1: How does that fit into this sustainability look. Education is

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Speaker 1: a leading issue globally UM advancing education in terms of

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Speaker 1: RYE in elevating UM the level of income around the globe.

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Speaker 1: I think all of these companies derive revenues from something

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Speaker 1: that's specifically related to improving the circumstances of the world

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Speaker 1: or the population of the world. One of the most complicated,

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Speaker 1: I would say elements of all of this is getting

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Speaker 1: good data and measurement, and that's something that black Rock

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Speaker 1: is extremely focused on. Can we create opportunities that have

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Speaker 1: a specific outcome that we can measure that investors can

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Speaker 1: say yes, that's something that would be very appealing to me.

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Speaker 1: And I just want to correct myself. I was wrong.

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Speaker 1: I was thinking of Suez, which is also in the

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Speaker 1: e t F that is the uh forerunner of the

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Speaker 1: water company. But value of making automobile parts. Does this mean,

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Speaker 1: for example, that coal companies or those that are companies

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Speaker 1: that are focused on fossil fuel, would they ever have

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Speaker 1: an opportunity to become part of this sustainable investing. It's

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Speaker 1: unlikely that a company that derives the majority of its

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Speaker 1: income from fossil fuels would be a leading part of

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Speaker 1: of an index like that. On the other hand, you

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Speaker 1: sometimes see the companies that are most entrenched in some

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Speaker 1: of the traditional forms of energy are also the ones

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Speaker 1: that are leading some of the most innovative work around renewables.

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Speaker 1: So one of the things that I think is a

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Speaker 1: challenge is finding investments that are just pure plays. A

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Speaker 1: lot of time, companies that are doing some of the

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Speaker 1: most innovative and exciting work can also have some traditional

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Speaker 1: businesses that you might not associate with those outcomes. And

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Speaker 1: and just the last point to you this e t F.

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Speaker 1: This is something that Black Rock is gonna put its own,

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Speaker 1: uh sort of muscle behind to popularize. Yeah, we had

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Speaker 1: a launch a couple of weeks ago on Earth Day.

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Speaker 1: We partnered with the United Nations and had a launch

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Speaker 1: and rang the bell and you know again, we're creating

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Speaker 1: a platform of products across all asset classes. That is

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Speaker 1: an effort to provide opportunities for lots of different investors

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Speaker 1: across the globe to have the opportunity to make impact investments.

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Speaker 1: Thanks very much for sharing your thoughts and educating us.

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Speaker 1: Debra Winchell, Managing director, Global Head of Impact Investing for

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Speaker 1: black Rock