Sustainability Reporting and ESG Ratings with CEO and Founder of CSE Nikos Avlonas.

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What's your take on the industry
Trend?

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Right now is of top Executives
and their compensation tied to

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ESG performance, right?
Yes.

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We have a new trend.
We are in the very, very early

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beginning of this trend.
Very few organizations have

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created bonus schemes that are
related to the east sea, ratings

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of the companies.
So the higher, the rating of the

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company, And the better, the
bonus and that this is great.

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I mean, this is, again, are very
early beginning of this is

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transformational, to be honest
with you.

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I mean, when I think of it, this
just is just come out about,

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like, in the past year and a
half to let really about a year

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and a half.
Yeah, you know, compensation was

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always tied to Performance or
production or, you know, you

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know how much profit, but no now
performance is going to be tied

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to, how well they're doing with
their ESG performance.

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Immense and reducing greenhouse
gas.

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That is a game changer.
It days of cost profit.

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It's still better, right?
Wow.

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That's like an element but it's
not deleting one anymore.

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It seems like, yeah.
I mean he's G is becoming a very

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important element about the
future of a company and about

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Investors.
So investors and financial

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institute, they're going to
invest in common is that they

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have limited risks.
Welcome to the environmental

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transformation podcast where we
talk with industry leaders,

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climate Champions and
sustainability professionals,

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who are making an impact in
their businesses.

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Today, each leader solving
complex challenges and provide

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Solutions within the respective
areas of expertise.

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And here's our host, Sean Grady.
Hey, have you noticed it's

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Welcome to the environmental
transformation podcast.

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I'm your host, Sean Grady.
And today's guest is Nico,

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Avalon has, he is the director
and the president CEO of the

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center for sustainability and
Excellence.

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Welcome to the show.
Niko's Thank you so much song

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for having me in this.
Oh well I did.

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I'm really excited to have you
back is you are one of our

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repeat guests and this is
exciting because you know this

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is an important topic and you
being one of the resident

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experts in the industry who
better to come and talk about

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ESG.
Thank you so much for your kind

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words.
I ESG is a very complex issue.

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It took me 15 years in order to
understand better what's

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happening and is involving every
every single day Yeah.

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Absolutely.
I mean it's been a Hot Topic in

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the industry for the past two
two-and-a-half three years and

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more so lately.
But what I'd like to do with

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this episode is kind of break
this interview into like three

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segments that way, the listeners
can, you know, take away

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bite-sized chunks of the
interview so that they can break

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this down into more
understanding and we can really

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get into some details to cover
some topics.

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So the first topic I'd like to
talk about is Let's introduce

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the listeners to the Center for
sustainability and excellence

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and talk a little bit about your
history and then, let's talk

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about ESG and what this all
means.

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So give us a little bit of
background about si si SE and

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you know how you got started.
Yeah.

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We get started 15 years ago in
Europe.

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We were the first company which
we started the new sector, which

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goes to stability Consulting,
and Training Services.

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At that time.
There goes number No one in our

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sector.
We were the only one and was

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very proud about that.
Starting a course sector today,

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it's 35 billion dollars sector,
so it has growth a lot CS.

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It was always a thought leader
and pioneering in its ESG

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consulting services and also was
a training company was trying to

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certified and qualified
sustainability professionals all

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around the globe, so why are we
start with the Europe

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immediately?
Survived.

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We move on to Chicago where we
establish our Global

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headquarters at.
Now, we have activities in North

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America, Europe Gulf, countries,
and Asia, more or less.

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We work with Fortune. 500 firms,
private institute's governmental

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agencies and sometimes we
smaller firms and we have

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trained over 95 percent of
Fortune. 500 firms in 90

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countries.
Wow!

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Wow.
So you guys are obviously one of

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the Regional sustainability
practitioners and education

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leaders in the industry and it's
really great to see that.

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You know, you kind of been able
to bring your business to the

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Forefront with this type of
service because as you know and

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everyone else knows right now.
That's listening ESG is the

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topic of, you know, top of
everybody's mind as it relates

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to the industry sustainability
and everything else is so much.

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Involved with this and get,
let's do this.

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Let's can you explain to
listeners the meaning of, you

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know, environmental social
governance?

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And why is this such a big deal
in in the industry today?

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Yeah, I'm gonna do my best.
It's accommodate that it's more

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complicated than it seems.
As we all know, is G is the new

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buzzword.
It's the new Hot Topic

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instability, and it it's about
what the investors require from

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business.
So investors require from

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Business from their Investments
to meet particular environmental

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social and governance criteria
in order for investors to reduce

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their investing risks.
So investors wants more

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sustainable business in order to
protect their investment and

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business also wants to be more
sustainable, and that's why in

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between we have the ESG criteria
and Wiley a secret area seems

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very simple in Korea.
It's not right about over 100

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criteria but we environment
social factors like diversity,

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equal rights supply chain
issues, and government issues.

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So it's not easy, they're really
demanding Materia and of course

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the business are trying to meet
this criteria and it's not easy

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for them.
Yeah so you know investors are

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have been changing.
Her Mind Set On what's important

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to them.
No longer is, you know, just you

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know, profitability, the big,
you know, item or the main thing

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right now it's investors are
really looking at how our

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companies really, you know,
doing in the environmental space

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from addressing climate change
and their risk.

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And I think this is, this is a
shift in the mindset of

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investors.
Exactly for investors is about

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doing well.
By doing good.

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And that's a good way to put it.
This is, this is a great thing.

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Let me, let me give you some
impressive fingers right now.

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So in 2022, it is expected to
have sustainability related

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assets under management in about
35 trillion dollars.

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By 2025, we're going to move on
to 50 trillion dollars in

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sustainability, related assets
and actually, according to

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Bloomberg one out of the three
dollars today which are invested

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are invested in with ESG
criteria.

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This means that the whole world
one, third of the globe are, you

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know, have to meet particular is
tricking Syria.

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If they want to survive, if they
want to see, The future

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positively, if you want to
sustain themselves, right?

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Right.
And then if they want that

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investment money to kind of help
keep continue growing their

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companies, I mean, companies
need to start doing, you know,

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managing their business in a
more sustainable way to actually

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grow instead of just making
profits.

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Yes.
And one more thing which I think

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is going to be very interesting
for the audience.

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Is that the rating, we have
rating, independent rating

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Institute, such as the msci,
CDP.

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Dow Jones sustainability, index,
and sustain a latex.

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I'm just referring to some
independent rating indices.

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But, there are rate their verb
job is to rate independently.

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They see performers of business,
and the interesting thing is

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that, while the rating agencies
they doing, but the business

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have no control of his writing.
Great.

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Right.
Well, that's so when we talk

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about these new ratings and and
the whole requirement of

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reporting and things like that
which is we're going to get into

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it in a couple of these other
segments.

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So let's let's save some of
those questions.

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But you know, what is the value
of ESG reporting for companies

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because if you know, both
internal and external benefits,

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you know, let's let's dive into
that a bit because I think

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that's going to kind of shed
light on why this is so

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important.
Yeah, that's a great.

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Question.
That is g report or

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sustainability reporting is the
ultimate tool were every company

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is disclosing, very performance,
and environmental social and

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governance criteria and at the
same time is the best tool for

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the companies to influence
investors and influence the ASG

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ratings.
So the more content appropriate

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content they have in diverted
porting, the more likely is that

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this common is they're going to
get positive ratings and they're

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going to be preferred by
investors.

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So the easy reporting is the
ultimate tool for the companies

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to influence their history,
ratings and have more and be

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more credible to investors to
the eyes of investors.

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Yeah, I mean, a lot of times
when investors are looking

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looking at the 10K, you know, as
well as far as, you know, what

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their performance is and the
liabilities, but I think there's

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more of this additional drill
down into the ESG report to get

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a better feel for, you know,
their, their overall performance

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on the environmental side,
right?

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Yes, exactly.
And there are many other

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benefits of sustainability
report, let me share some of

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them.
It helps companies to commit and

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set measurable goals and their
public goal.

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So For you publicize that then
you have to meet them.

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It's it's very important for me,
man.

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Yeah, we all know it had to have
seen from our experience working

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with several Global Fortune, 500
firms, but it helped to measure

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their performance and magnets
change.

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And as we know sustainability is
helping organizations to be

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transformed into more
sustainable business from what

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they are right now and the most
Orton fact, I have seen all

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these years and I think very few
people unfortunately, or

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fortunately, this have
underlined, that is that 80% of

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the value of the company today
are being danceable assets,

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reporting is the disclosing of
the performance of every company

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on this intangible assets, which
represents the 80% of the value.

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So a sustainability report
reflects today.

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Future of the company and how
this common is going to be

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sustainable, mats better than a
traditional financial report.

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And that's why sustainability
report is required in many

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places around the globe as part
of the legislation.

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For example, in Europe is
mandatory for seven and large

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business in every European
country, but also in many other

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countries around the globe.
Well array.

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And and there are some recent
changes coming.

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Going forward in the US, will
talk about that here in a little

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00:13:42,300 --> 00:13:44,700
bit as well.
But I think SEC is going to be

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proposed some new rules so
that'll be interesting.

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Let's we'll dive into that.
Well, this has been a kind of a

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decent pretty good overview on
the impact or the importance of

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ESG reporting and I got a majan
part of this conversation.

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As we as relates to reporting is
around tracking.

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And managing this data because
we're kind of talking about the

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reporting component which is a
very important, right?

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You got to summarize all this
information, the importance of.

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How do you track this
information?

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00:14:14,200 --> 00:14:17,900
What's important to, you know,
how to manage this appropriately

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00:14:17,900 --> 00:14:22,000
from a business operation level?
I'm kind of curious how you know

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00:14:22,000 --> 00:14:26,000
how companies are, you know
separating all this information

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00:14:26,000 --> 00:14:29,100
out at a granular level so it
does a nice little report from

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00:14:29,100 --> 00:14:32,200
from the bottom up to the top,
you know, I mean other software

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00:14:32,400 --> 00:14:34,200
Platforms.
I mean, people doing this by

237
00:14:34,200 --> 00:14:36,200
spreadsheets.
I mean, what's the typical way?

238
00:14:36,200 --> 00:14:39,400
This is happening?
Yeah, they started the spread

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00:14:39,400 --> 00:14:43,100
seeds and then they realize, but
there's not going to be enough.

240
00:14:43,400 --> 00:14:47,100
So we're going to need software
but most importantly they need

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00:14:47,100 --> 00:14:52,100
qualified professionals, either
hire them or educate them

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00:14:52,100 --> 00:14:57,400
internally to gather the right
data and then disclosed were

243
00:14:57,400 --> 00:15:01,500
right that the through the
compliance particular standards.

244
00:15:02,400 --> 00:15:05,900
We have EST standards of course
for reporting report.

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00:15:05,900 --> 00:15:09,100
This is not something that you
can do in any way you want, as

246
00:15:09,100 --> 00:15:11,600
in financial reporting,
standards with the companies

247
00:15:11,600 --> 00:15:16,500
have to comply, like SAS be
standards or gri standards with

248
00:15:16,500 --> 00:15:20,700
perra leading standards in the
globe, that help companies

249
00:15:20,700 --> 00:15:26,100
standardize the way that this
data are being reported or

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00:15:26,100 --> 00:15:29,300
disclosed.
So, there's a lot of job

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00:15:29,300 --> 00:15:32,800
internally.
So global companies Have big

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00:15:32,800 --> 00:15:36,700
themes, Global teams that the
government's data and of course

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00:15:36,700 --> 00:15:40,800
you need software you need
appropriate software in order to

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00:15:41,000 --> 00:15:45,500
collect the data, analyze the
data and report that now that's

255
00:15:45,500 --> 00:15:47,900
great.
Well, this has been a good intro

256
00:15:47,900 --> 00:15:55,100
into our first segment.
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I'd like to take a moment.
Now, to Let's dive into To our

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00:16:52,600 --> 00:16:55,900
second segment of today, we're
going to cover the role of the

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00:16:55,900 --> 00:16:58,800
chief sustainability manager and
the high demand for

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00:16:58,800 --> 00:17:00,900
sustainability Professionals in
the industry.

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00:17:00,900 --> 00:17:05,700
Let's dive into this.
So si si si SE has trained over

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00:17:05,700 --> 00:17:09,599
8,000 certified sustainability
practitioners globally, you

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00:17:09,608 --> 00:17:12,800
know, and you guys are analyzing
and periodically managing the

279
00:17:12,800 --> 00:17:15,700
and updating the standards.
And I'm knowing what's going on

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00:17:15,700 --> 00:17:19,400
it, because you need to put your
training materials together to

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00:17:19,400 --> 00:17:21,900
meet these standards.
So let's talk about Out the

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00:17:21,900 --> 00:17:24,700
increasing demand for
sustainability Professionals in

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00:17:24,700 --> 00:17:27,000
an organization.
You know, how does he look like?

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00:17:27,000 --> 00:17:29,700
We're very proud, doesn't
mention the very early beginning

285
00:17:29,700 --> 00:17:34,200
to have trained and qualified
8,000 stability practitioners

286
00:17:34,600 --> 00:17:38,900
from 90 countries that they
represent 90 almost 90 for today

287
00:17:38,900 --> 00:17:43,300
of Fortune, 500 firms, and
several governmental and other

288
00:17:43,300 --> 00:17:46,000
agencies.
So we are very happy about that

289
00:17:46,000 --> 00:17:49,300
because again, we get started 15
years ago.

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00:17:49,300 --> 00:17:53,900
So we were first in this field.
And it was easier for us at that

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00:17:53,900 --> 00:17:58,600
time to provide the need of the
qualification of this

292
00:17:58,600 --> 00:18:01,600
Professionals.
Of course, today we're talking

293
00:18:01,600 --> 00:18:06,400
about booming of sustainability,
profession in general or ESC,

294
00:18:06,400 --> 00:18:10,400
profession in general.
According to I a low, we're

295
00:18:10,400 --> 00:18:15,800
going to be at least millions of
jobs by 2030 needed related

296
00:18:15,800 --> 00:18:17,800
stability.
Wow.

297
00:18:17,800 --> 00:18:20,900
So it seems but nobility
profession is booming as we

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00:18:20,900 --> 00:18:23,500
speak.
And this is the reason that I'm

299
00:18:23,500 --> 00:18:28,000
teaching in you, I see in
Chicago and we have created

300
00:18:28,000 --> 00:18:33,400
sustainability related programs
to have the new generation to be

301
00:18:33,400 --> 00:18:38,000
ready for helping business to
turns eight from the order

302
00:18:38,000 --> 00:18:42,500
business model as a call it to a
more sustainable mode.

303
00:18:42,900 --> 00:18:46,400
So the Ralston ability
profession that is key today,

304
00:18:46,400 --> 00:18:50,200
there are thousands of
organizations that they have

305
00:18:50,900 --> 00:18:53,100
Vice.
Residents for sustainability or

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00:18:53,100 --> 00:18:58,800
is the directors or even ESG, or
stability committees that they

307
00:19:00,100 --> 00:19:03,300
are leading that inability
transformation within the

308
00:19:03,308 --> 00:19:06,600
business.
And it's really one of the most

309
00:19:06,600 --> 00:19:08,700
hot professions right now,
right?

310
00:19:08,700 --> 00:19:11,800
I mean, it is one of the hottest
career jobs out there.

311
00:19:11,800 --> 00:19:15,400
I mean, I see a lot of job
postings on LinkedIn and other

312
00:19:15,500 --> 00:19:18,500
platforms.
And I think a lot of the

313
00:19:18,500 --> 00:19:21,400
environmental professionals that
are currently in the industry.

314
00:19:21,600 --> 00:19:24,700
It's going to be an easy
transition for most of those

315
00:19:24,700 --> 00:19:27,500
professionals to into a
sustainability role, because

316
00:19:27,900 --> 00:19:30,500
probably, for the most part,
they've been doing some

317
00:19:30,500 --> 00:19:32,900
component of sustainability in
their, in their environmental,

318
00:19:33,000 --> 00:19:36,300
you know, jobs descriptions.
They just hasn't been kind of

319
00:19:36,900 --> 00:19:39,900
characterized as such, right.
Yes.

320
00:19:39,900 --> 00:19:44,300
And no.
Yes, because for some of them,

321
00:19:44,300 --> 00:19:48,100
the transition is going to be
more easy, those but have work

322
00:19:48,100 --> 00:19:51,400
at the operational level or of
environmental law.

323
00:19:51,500 --> 00:19:54,400
Level.
It's going to be easier, but is

324
00:19:54,400 --> 00:19:56,600
this becoming extremely
sophisticated?

325
00:19:56,600 --> 00:20:02,000
Today, we have 10 new standards
every year, a new ratings every

326
00:20:02,000 --> 00:20:05,100
year.
So everything you knew two years

327
00:20:05,100 --> 00:20:10,500
ago that renew relearn again
completely new almost every

328
00:20:10,500 --> 00:20:13,800
year.
So while it's helpful your

329
00:20:13,800 --> 00:20:18,800
background, you still need to
have a revised education every

330
00:20:18,800 --> 00:20:22,900
year with several new courses.
Led to the new standards.

331
00:20:22,900 --> 00:20:26,400
You should be aware in order to
help your organization, your

332
00:20:26,400 --> 00:20:31,900
company to comply and then, and
then have good DST performers

333
00:20:31,900 --> 00:20:35,000
from the rating agencies.
Well, what easy?

334
00:20:35,000 --> 00:20:39,400
It's challenging for them, and
that's why now companies had big

335
00:20:39,400 --> 00:20:43,200
themes, but everybody has a
different specialization, it's

336
00:20:43,200 --> 00:20:47,800
impossible.
One person to be specialists in

337
00:20:47,800 --> 00:20:51,000
everything.
No, yeah, absolutely, and it is

338
00:20:51,000 --> 00:20:53,700
more.
Plex you know, talk a little bit

339
00:20:53,700 --> 00:20:59,200
about the, you know, cse's
training opportunities for

340
00:20:59,200 --> 00:21:02,700
professionals who want to learn
and get a certification to help,

341
00:21:02,700 --> 00:21:05,400
you know, Advance their career
talk a little bit about that

342
00:21:05,400 --> 00:21:07,000
because I think that's kind of
important.

343
00:21:07,000 --> 00:21:09,700
I mean you guys are trained
8,000 plus, you know,

344
00:21:09,700 --> 00:21:12,200
sustainability practitioners,
how does that work?

345
00:21:12,500 --> 00:21:15,200
And how you know, what type of
courses are you offering?

346
00:21:15,700 --> 00:21:18,200
Yes.
First of all, we don't only

347
00:21:18,200 --> 00:21:23,500
trained practitioners, which
means Mouse or vice presidents

348
00:21:23,500 --> 00:21:26,700
or Executives, but also we train
board of directors.

349
00:21:26,700 --> 00:21:31,700
So, there are several cases that
CSC has many different levels of

350
00:21:31,700 --> 00:21:34,600
training.
We have the training where we

351
00:21:34,600 --> 00:21:38,500
qualified the Professionals in
order to play the role of

352
00:21:38,500 --> 00:21:43,000
sustainability, manager, or CS
or chips in a building manager

353
00:21:43,000 --> 00:21:46,900
or is the director.
So, this is one kind of training

354
00:21:47,300 --> 00:21:50,900
and then we have specialized
trainings for this professional.

355
00:21:50,900 --> 00:21:54,100
So if we I want to go more in
depth on a particular topic, for

356
00:21:54,100 --> 00:21:59,200
example, carbon emissions
metrics or circular economy.

357
00:21:59,200 --> 00:22:03,000
So they have the opportunity to
pick up specialized in depth

358
00:22:03,000 --> 00:22:05,500
courses.
And when we have in-house

359
00:22:05,500 --> 00:22:09,100
trainings, the group trainings
which are customized to the

360
00:22:09,100 --> 00:22:12,500
needs of each company.
And in this case, we start with

361
00:22:12,500 --> 00:22:16,200
the board of directors, when we
move on to c-suite Executives

362
00:22:16,500 --> 00:22:19,500
and then the third level is
managers of the company.

363
00:22:20,000 --> 00:22:23,800
And the good thing is Vibe that
we have several companies,

364
00:22:23,800 --> 00:22:28,100
especially from Silicon Valley,
but also from other places that

365
00:22:28,100 --> 00:22:33,100
they starting understanding the
need of the education of all

366
00:22:33,100 --> 00:22:36,300
over stuff.
So, the new trend is that not

367
00:22:36,300 --> 00:22:42,300
only train directors or managers
but also engage with all your

368
00:22:42,300 --> 00:22:46,500
stuff and train, all your stuff
and they understand.

369
00:22:46,500 --> 00:22:50,100
But it's very important, forward
transformation to a sustainable

370
00:22:50,100 --> 00:22:51,900
business.
Gotcha.

371
00:22:51,900 --> 00:22:53,700
Okay, good to know, good to
know.

372
00:22:54,200 --> 00:22:56,600
Well what is the latest trends
of sustainability reporting?

373
00:22:56,600 --> 00:22:59,800
Including the standards used?
Are there any key differences

374
00:22:59,800 --> 00:23:01,800
between Europe and the us or
Canada?

375
00:23:01,800 --> 00:23:03,400
I mean, talk about that a little
bit.

376
00:23:03,700 --> 00:23:08,100
Yes, we are very happy to Sir
the latest research so far.

377
00:23:08,700 --> 00:23:13,100
Every year we do research on ESG
and we worked about 15 country

378
00:23:13,100 --> 00:23:17,300
companies from US and Canada in
the latest research.

379
00:23:17,300 --> 00:23:25,300
We did that the end of 2021 and
we find out The esz leaders, it

380
00:23:25,300 --> 00:23:29,200
means the communities with the
highest ratings in sixteenths.

381
00:23:29,200 --> 00:23:32,500
Actors have some common
characteristics and whether

382
00:23:32,500 --> 00:23:36,200
those fascinating.
So there is a methodology that

383
00:23:36,200 --> 00:23:39,700
more or less always companies
follow in order to have best

384
00:23:39,700 --> 00:23:44,700
performance and therefore better
Financial results than the other

385
00:23:44,700 --> 00:23:47,500
companies and let me serve as
with you.

386
00:23:47,800 --> 00:23:53,000
The first one is that they have
Very ambitious, ESG goals.

387
00:23:54,000 --> 00:23:58,100
For example, the most of them,
they going to be Net Zero in

388
00:23:58,100 --> 00:24:01,400
terms of carbon emissions, by
2025 or 2030.

389
00:24:01,500 --> 00:24:03,700
Uh-huh.
I'm just giving an example of a

390
00:24:03,700 --> 00:24:06,300
goal.
Most of them, they meet

391
00:24:06,300 --> 00:24:09,800
particular comply with
particularly is the standards,

392
00:24:09,800 --> 00:24:15,100
like, the gri size, B, and T cfd
guidelines, which are heavily

393
00:24:15,100 --> 00:24:20,900
specialized to ESG criteria, and
all of them.

394
00:24:21,100 --> 00:24:25,200
They do on an annual basis and
stakeholder survey and they

395
00:24:25,200 --> 00:24:29,400
trying to identify what are the
key concerns of the stakeholders

396
00:24:29,400 --> 00:24:34,000
including investors, clients,
employees, suppliers, and so on.

397
00:24:34,400 --> 00:24:41,300
These are common, I would say
practices from the ESG top 50

398
00:24:41,300 --> 00:24:45,800
lingers, according to our
research findings, So if you're

399
00:24:45,800 --> 00:24:49,300
a company and you're a global
company, you know, you're

400
00:24:49,300 --> 00:24:54,500
operating in multi countries,
you know, the key there is now

401
00:24:54,500 --> 00:24:57,800
you have to understand the
different regulations in all the

402
00:24:57,800 --> 00:25:00,300
all this you know countries you
operate in.

403
00:25:01,700 --> 00:25:05,200
Have you seen some companies
take more of a hey we're going

404
00:25:05,200 --> 00:25:10,000
to use this more stringent
standard or common standard

405
00:25:10,000 --> 00:25:14,200
than, you know, focusing
specifically on just a local.

406
00:25:14,900 --> 00:25:18,100
Requirement or guess it makes
sense.

407
00:25:18,200 --> 00:25:21,400
So for a global business is
challenging because we need to

408
00:25:21,400 --> 00:25:23,600
comply with different
legislations around.

409
00:25:23,600 --> 00:25:27,600
The globe are the ice
legislations right now we have

410
00:25:27,600 --> 00:25:31,900
seen is in Europe and Canada so
if any company is a global

411
00:25:31,900 --> 00:25:36,200
company for example PepsiCo
which is operating are annoyed

412
00:25:36,200 --> 00:25:40,000
hundred calories or more and
they meet the European or

413
00:25:40,300 --> 00:25:43,100
Canadian legislation.
This means that they don't have

414
00:25:43,100 --> 00:25:46,100
to comply with any a verdict. /
and because I just read, leave

415
00:25:46,100 --> 00:25:51,400
the toughest one to be the top.
Let's and this is usually the

416
00:25:51,400 --> 00:25:53,900
common practice.
They was trying to comply with

417
00:25:53,900 --> 00:25:57,700
this kind of legislation.
Although the tricky thing here

418
00:25:57,700 --> 00:26:01,200
is that this legislation is
changing every year.

419
00:26:01,400 --> 00:26:07,400
So when we're talking about
compliance ten years ago, it was

420
00:26:07,400 --> 00:26:11,500
an easy thing to do, is not so
many legislations around

421
00:26:11,500 --> 00:26:14,300
stability day.
It's a moving Target.

422
00:26:14,700 --> 00:26:17,000
It means that you need to have a
whole team.

423
00:26:17,600 --> 00:26:21,500
Only to help organization comply
with any upcoming installation.

424
00:26:22,800 --> 00:26:23,900
Yeah.
No, I guess.

425
00:26:23,900 --> 00:26:25,700
That's right.
I mean, you need a lot of

426
00:26:26,600 --> 00:26:29,700
different stakeholders taken
taken note of what's going on in

427
00:26:29,700 --> 00:26:33,200
the regions that are working in
so, well, what's the role in the

428
00:26:33,200 --> 00:26:35,400
future of sustainability
professionals?

429
00:26:35,400 --> 00:26:38,000
I mean, will it be important for
sustainability professionals to

430
00:26:38,000 --> 00:26:41,000
attain their credential and
demonstrate their knowledge and

431
00:26:41,000 --> 00:26:45,400
credibility, you know, to to
deal with these Ever-changing

432
00:26:45,400 --> 00:26:47,900
requirements.
Yes.

433
00:26:48,100 --> 00:26:54,400
And that's why we need to attend
courses on an annual basis and

434
00:26:54,400 --> 00:27:00,900
also be able to find out about
the requirements of upcoming

435
00:27:00,900 --> 00:27:04,200
legislation.
Again, according to ILO, I

436
00:27:04,200 --> 00:27:09,700
Lloyd's, teammates the creation
of 24 million jobs, related, to

437
00:27:09,700 --> 00:27:13,900
Green economy, which means
related to the nobility by 2030

438
00:27:13,900 --> 00:27:17,400
alone, so 24 million that's all.
Hello.

439
00:27:17,400 --> 00:27:19,100
It's a lot of jobs.
Yeah.

440
00:27:19,200 --> 00:27:21,000
Yeah.
I'm surprised.

441
00:27:21,400 --> 00:27:23,800
Are you sensing that
universities are starting to

442
00:27:23,800 --> 00:27:28,200
develop and prepare for, you
know, sustainability degrees

443
00:27:28,200 --> 00:27:30,300
coming out of college in this
area.

444
00:27:30,700 --> 00:27:33,800
Absolutely.
In DePaul University in Chicago,

445
00:27:33,800 --> 00:27:35,700
where I was stating for several
years.

446
00:27:35,700 --> 00:27:39,200
We had developed a master
degree, one of the first Masters

447
00:27:39,200 --> 00:27:43,400
Degree in the country about
sustainable management but they

448
00:27:43,400 --> 00:27:46,700
every I would say all leading
universities have either.

449
00:27:46,800 --> 00:27:51,000
Our Master degrees from
sustainability or MBA programs

450
00:27:51,000 --> 00:27:54,200
with sustainability
concentration or Bachelor

451
00:27:54,200 --> 00:27:58,200
degrees with the inclusion of
sustainability related courses.

452
00:27:58,200 --> 00:28:02,800
So I would say that and I'm very
happy about that.

453
00:28:03,100 --> 00:28:08,300
Because back in 2014, we wrote
the book practice inability

454
00:28:08,300 --> 00:28:12,000
strategies and the objective of
that book at bath time, goes to

455
00:28:12,000 --> 00:28:16,700
help universities have the right
books in order to help.

456
00:28:16,900 --> 00:28:19,900
Students acquire, the right
knowledge, practical and

457
00:28:19,900 --> 00:28:24,700
up-to-date knowledge for for
learn more about going into the

458
00:28:24,700 --> 00:28:26,200
field.
Yeah, right now that's, that's

459
00:28:26,200 --> 00:28:27,300
fantastic.
That's great.

460
00:28:27,300 --> 00:28:31,300
Well, what's your take on the
industry Trend right now of top

461
00:28:31,300 --> 00:28:34,500
Executives and their
compensation tied to ESG

462
00:28:34,500 --> 00:28:37,600
performance, right?
Yes.

463
00:28:37,700 --> 00:28:41,100
We have a new trend.
We are in the very, very early

464
00:28:41,100 --> 00:28:44,500
beginning of this trend.
Very few organizations have

465
00:28:44,500 --> 00:28:48,900
create bonus schemes that That
are related to the history

466
00:28:48,900 --> 00:28:53,200
ratings of the companies, so the
higher, the rating of the

467
00:28:53,200 --> 00:28:59,200
company, then the better the
bonus and that this is great.

468
00:28:59,200 --> 00:29:03,200
I mean, this is, again, are very
early beginning of this is

469
00:29:03,200 --> 00:29:05,500
transformational, to be honest
with you.

470
00:29:05,500 --> 00:29:09,400
I mean, when I think of it, this
just is just come out about,

471
00:29:09,400 --> 00:29:11,600
like, in the past year and a
half to let really about a year

472
00:29:11,600 --> 00:29:14,200
and a half.
Yeah, you know, compensation was

473
00:29:14,200 --> 00:29:18,700
always tied to Performance or
Suction or, you know, you know

474
00:29:18,700 --> 00:29:22,100
how much profit but no now
performance is going to be tied

475
00:29:22,100 --> 00:29:25,900
to how well they're doing with
their ESG performance, and

476
00:29:25,900 --> 00:29:30,100
reducing greenhouse gas.
That is a game changer, it days,

477
00:29:30,100 --> 00:29:33,100
of course profit, it's still
there right now, that's like an

478
00:29:33,100 --> 00:29:34,900
element but it's not deleting
one anymore.

479
00:29:34,900 --> 00:29:40,300
It seems like, yeah, I mean,
he's G is becoming a very

480
00:29:40,300 --> 00:29:45,100
important element about the
future of the company and about

481
00:29:45,500 --> 00:29:48,700
Investors.
So, Investors and financial

482
00:29:48,700 --> 00:29:50,900
institute.
We're going to invest in

483
00:29:50,900 --> 00:29:53,400
companies that they have limited
risks.

484
00:29:53,900 --> 00:29:58,500
So we're going to see Industries
like fossil fuels Industries or

485
00:29:58,800 --> 00:30:02,100
any kind of order.
We call it industries that they

486
00:30:02,100 --> 00:30:05,900
know that we're going to be
struggling in finding investors

487
00:30:05,900 --> 00:30:11,500
or get financed by the financial
system in the next two or three

488
00:30:11,500 --> 00:30:13,100
years.
So it's not going to be easy for

489
00:30:13,100 --> 00:30:17,900
them to survive and that's why.
Corporations.

490
00:30:17,900 --> 00:30:20,000
We need to do this
transformation is just

491
00:30:20,000 --> 00:30:24,000
information now because world is
changing fast.

492
00:30:24,200 --> 00:30:25,800
Yeah, right.
I agree.

493
00:30:25,800 --> 00:30:32,500
Investors are demanding more
clarity, more visibility on

494
00:30:32,500 --> 00:30:34,800
performance, from the ehe
perspective from these

495
00:30:34,800 --> 00:30:36,300
companies.
They want to invest in and

496
00:30:36,300 --> 00:30:38,500
because it's near and dear to
their heart and they care about

497
00:30:38,500 --> 00:30:40,600
the environment.
And of course they care about

498
00:30:40,600 --> 00:30:43,700
making money too, but more so on
doing good for the best.

499
00:30:43,700 --> 00:30:47,500
All right, so well that's this
has been a good moment.

500
00:30:51,900 --> 00:30:54,500
Hey, have you been looking to
skill up and become a certified

501
00:30:54,500 --> 00:30:55,900
sustainability?
Professional.

502
00:30:55,900 --> 00:30:58,200
I've had been wondering where to
start.

503
00:30:58,300 --> 00:31:00,800
Well, the center for
sustainability and Excellence

504
00:31:00,800 --> 00:31:03,600
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505
00:31:03,600 --> 00:31:07,100
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506
00:31:07,100 --> 00:31:10,000
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507
00:31:10,000 --> 00:31:12,300
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508
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509
00:31:13,800 --> 00:31:16,500
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510
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511
00:31:19,100 --> 00:31:24,000
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512
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513
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514
00:31:30,500 --> 00:31:34,500
That's www.csiro.au!
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515
00:31:38,000 --> 00:31:40,900
We're going to jump into our
third segment, which is what are

516
00:31:40,900 --> 00:31:43,500
the new standards and
legislation in the US and

517
00:31:43,500 --> 00:31:45,500
Europe.
That will have high impact on

518
00:31:45,500 --> 00:31:48,500
businesses.
So what can be expected from the

519
00:31:48,508 --> 00:31:51,900
US?
Is after the SEC the Securities

520
00:31:52,100 --> 00:31:55,400
and Exchange Commission launched
their new major Outreach to

521
00:31:55,400 --> 00:32:00,500
businesses in March of 2021.
And just recently they have just

522
00:32:00,500 --> 00:32:03,100
released their proposed climate
disclosure roll.

523
00:32:03,100 --> 00:32:06,200
Let's talk about that.
Niko's, yes, we're very happy to

524
00:32:06,200 --> 00:32:08,900
blows vodka.
We had sec in the conservation

525
00:32:08,900 --> 00:32:12,900
process last May because in May
20, 21 and of course we were

526
00:32:12,900 --> 00:32:17,500
very excited about that and that
we're very happy about this

527
00:32:17,500 --> 00:32:20,900
legislation.
This little Ocean requires from

528
00:32:20,900 --> 00:32:25,200
business to disclose information
related to climate risks.

529
00:32:25,900 --> 00:32:29,700
Climate change is happening as
we all know, climate change, as

530
00:32:29,700 --> 00:32:32,600
covid.
Create disruptions to supply

531
00:32:32,600 --> 00:32:37,200
chains to the whole economy and
the whole philosophy of the

532
00:32:37,200 --> 00:32:42,300
legislation is that if you can,
invasions are well prepared to

533
00:32:42,300 --> 00:32:48,700
report how well prepared they
are about.

534
00:32:48,900 --> 00:32:54,700
Out climate related risks, right
and therefore indirectly it

535
00:32:54,700 --> 00:32:58,700
gives a very important signal
and the signal is that get

536
00:32:58,700 --> 00:33:01,800
prepared and create the
appropriate infrastructure and

537
00:33:01,800 --> 00:33:06,500
diversity of resources in order
to be able to be a sustainable

538
00:33:06,500 --> 00:33:12,300
business and avoid interruptions
from climate change related

539
00:33:12,300 --> 00:33:14,500
phenomenon.
Yeah, so when I was reading the

540
00:33:14,500 --> 00:33:19,900
new proposed rule there are
their requirements now To have a

541
00:33:19,908 --> 00:33:23,400
plan in place to address their
basically, what's their

542
00:33:23,400 --> 00:33:27,700
resiliency plan to address?
You know, climate change effects

543
00:33:27,700 --> 00:33:29,600
to their business?
So like you know how are they

544
00:33:29,608 --> 00:33:32,700
planning to do that and then
also was you know really

545
00:33:32,700 --> 00:33:35,800
reporting all of their
disclosures from indirect and

546
00:33:35,800 --> 00:33:39,800
direct greenhouse gas impacts to
their business and tracking all

547
00:33:39,800 --> 00:33:42,400
those.
You know that's that's a lot to

548
00:33:42,400 --> 00:33:45,500
ask for companies, it's going to
be a requirement.

549
00:33:45,500 --> 00:33:48,100
Now that's going to be a
standard which I think's going

550
00:33:48,100 --> 00:33:52,600
to really Unify.
The way everybody is being

551
00:33:52,600 --> 00:33:56,300
evaluated in the industry from
any SG perspective.

552
00:33:56,300 --> 00:33:58,900
I think there's a lot of benefit
to having everyone playing on

553
00:33:58,900 --> 00:34:02,800
the same sheet of music when and
seeing standards and I think

554
00:34:02,800 --> 00:34:06,500
that'll be really good.
Yeah, we are in the air it out

555
00:34:06,500 --> 00:34:11,300
of the carbonization of the
business and the as I mentioned

556
00:34:11,300 --> 00:34:14,699
several business want to become
90 by 2030.

557
00:34:14,699 --> 00:34:18,100
This is an ultimate goal, we
have introduction of

558
00:34:18,100 --> 00:34:20,699
initiatives.
Sighs the sign base targets

559
00:34:20,699 --> 00:34:24,100
initiatives, that help
organizations to make the right

560
00:34:24,100 --> 00:34:28,400
commitments towards carbon
reduction or the comic Net Zero

561
00:34:29,000 --> 00:34:30,600
and this is going to be
challenging.

562
00:34:30,600 --> 00:34:33,000
This is going to be a challenge
for most of the business.

563
00:34:33,000 --> 00:34:36,100
But of course we know that they
know what they have to do that

564
00:34:36,100 --> 00:34:39,300
at the same time and there's no
way out.

565
00:34:39,300 --> 00:34:43,600
So there's a lot of pressure
from legislation from investors

566
00:34:44,699 --> 00:34:46,500
but also we know that they have
to do it.

567
00:34:46,500 --> 00:34:50,000
So right now there's a lot of
internal Discussions between

568
00:34:50,000 --> 00:34:54,300
board meetings since it
executive meetings on what are

569
00:34:54,300 --> 00:34:59,000
the proper plans in order to
reduce significantly carbon

570
00:34:59,000 --> 00:35:02,700
emissions, not only within their
operations but also with inverse

571
00:35:02,700 --> 00:35:06,600
supply chain.
This is where we are right now

572
00:35:06,700 --> 00:35:11,400
and I believe by 2025 in almost
three years from now we're going

573
00:35:11,400 --> 00:35:15,000
to see hopefully significant
progress towards this direction.

574
00:35:15,500 --> 00:35:18,400
Yeah.
Smashing and investors are the

575
00:35:18,400 --> 00:35:20,300
key drivers.
Is right now, right?

576
00:35:20,300 --> 00:35:24,100
No, I tell ya.
I agree and and the requirements

577
00:35:24,100 --> 00:35:27,400
for capturing these, you know,
scope one scope to scope three

578
00:35:27,400 --> 00:35:31,100
type B missions is, you know,
from the supply chain, you know,

579
00:35:31,100 --> 00:35:34,300
understanding you know, from
your suppliers, their carbon

580
00:35:34,300 --> 00:35:36,100
impact of the products you're
purchasing from that.

581
00:35:36,100 --> 00:35:39,400
That's, that's going to a whole
nother level that a lot of

582
00:35:39,400 --> 00:35:41,000
companies aren't doing right
now.

583
00:35:41,000 --> 00:35:44,100
And that's going to take a lot
of effort from a contract

584
00:35:44,100 --> 00:35:47,000
procurement perspective.
Like who am I going to buy these

585
00:35:47,000 --> 00:35:49,700
properties products from?
And now I need to Assess, you

586
00:35:49,700 --> 00:35:51,800
know, they're carbon impact to
the purchases.

587
00:35:51,800 --> 00:35:56,200
I make I mean this is this is
going to really be a lot more

588
00:35:56,200 --> 00:35:58,300
complicated and it's going to
require a lot more

589
00:35:58,300 --> 00:36:00,700
infrastructure from companies to
put these things in place.

590
00:36:00,700 --> 00:36:03,200
When you agree.
Yes, this is going to be super

591
00:36:03,200 --> 00:36:06,900
complicated, especially for
smaller, medium business that

592
00:36:06,900 --> 00:36:10,900
are the suppliers are or part of
the supply chain of larger

593
00:36:10,900 --> 00:36:13,700
business.
This kind of smaller business,

594
00:36:13,700 --> 00:36:16,800
they're going to get a lot of
pressure and the need to adopt

595
00:36:16,800 --> 00:36:20,000
immediately, otherwise, you're
going to Is ver clients.

596
00:36:20,000 --> 00:36:23,900
So we're going to lose the big
portion of the revenue so it's

597
00:36:23,900 --> 00:36:27,500
essential for web.
This is the new Way, New Wave of

598
00:36:27,500 --> 00:36:29,900
sustainability as we call it,
which is moving.

599
00:36:29,900 --> 00:36:34,700
Now to B2B business to business,
small medium Enterprises which

600
00:36:34,700 --> 00:36:38,000
are part of a bigger supply
chain.

601
00:36:38,800 --> 00:36:40,000
Right.
Right?

602
00:36:40,400 --> 00:36:43,900
What what role does the European
commission, European green deal

603
00:36:43,900 --> 00:36:47,600
or the European taxonomy play in
the quality of sustainability

604
00:36:47,600 --> 00:36:50,500
reporting?
Because You know, that's it

605
00:36:50,500 --> 00:36:53,100
sounds like they're kind of
leading the way in the industry

606
00:36:53,100 --> 00:36:55,600
and it's a having its effect
globally.

607
00:36:56,200 --> 00:37:00,000
Yes, this is one of the toughest
legislation in the globe if not

608
00:37:00,000 --> 00:37:03,100
the toughest the most
challenging if I call it

609
00:37:03,100 --> 00:37:08,200
demanding.
But Sarai term in PE you make a

610
00:37:08,300 --> 00:37:13,000
commitment to become carbon zero
Net, Zero by 2050 and of course,

611
00:37:13,000 --> 00:37:15,600
requires that every country
European candidate also to

612
00:37:15,600 --> 00:37:20,700
become Net Zero by 2050.
This is a huge transformation

613
00:37:20,700 --> 00:37:23,800
for the European economy,
obviously, and is going to

614
00:37:23,800 --> 00:37:27,200
affect any business operating,
right?

615
00:37:27,200 --> 00:37:32,300
Any kind of European country,
but is going to affect any

616
00:37:32,300 --> 00:37:36,100
American global business
operating in Europe, right and

617
00:37:36,100 --> 00:37:39,400
times.
So it's going to have a huge

618
00:37:39,400 --> 00:37:44,900
huge impact to any, I would say
American global business, but

619
00:37:44,900 --> 00:37:50,500
also small medium Enterprise but
we're supplying products or

620
00:37:50,500 --> 00:37:54,800
services to European companies
at the same time.

621
00:37:54,800 --> 00:37:58,500
So we believe that this
commitment has going to have a

622
00:37:58,500 --> 00:38:00,800
huge impact to the American
Business.

623
00:38:00,800 --> 00:38:03,700
And also there is another new
legislation.

624
00:38:03,700 --> 00:38:08,700
We you taxonomy, which gone
classify, what kind of

625
00:38:08,700 --> 00:38:12,600
Investments are going to be
considered as standard.

626
00:38:12,600 --> 00:38:16,800
So, the big issue today,
especially here in the u.s. is

627
00:38:16,800 --> 00:38:21,600
that They could use the term
sustainable for any kind of

628
00:38:21,600 --> 00:38:25,200
investment.
Now, we use going to classify

629
00:38:25,200 --> 00:38:28,300
what is going to be considered
sustainable investment and

630
00:38:28,300 --> 00:38:35,200
wherefore what you're allowed
where you are allowed to invest

631
00:38:35,200 --> 00:38:37,800
your money.
So if you are a sustainable

632
00:38:37,800 --> 00:38:42,400
investor in Europe or abandoning
Institute in Europe, you're not

633
00:38:42,400 --> 00:38:46,400
going to be allowed to invest
money in or sustainable

634
00:38:46,400 --> 00:38:48,600
Investments.
Okay?

635
00:38:49,000 --> 00:38:52,700
Wow, this little slash know is
extremely critical is going to

636
00:38:52,700 --> 00:38:56,700
classify.
What is considered sustainable

637
00:38:56,700 --> 00:38:59,500
investment is it?
Nuclear Powers going to be

638
00:38:59,500 --> 00:39:02,300
sustainable investment or not?
Is it natural?

639
00:39:02,500 --> 00:39:06,200
Gas is considered sustainable
investment are not visual always

640
00:39:06,200 --> 00:39:11,300
issues, but is going to be
classified and this is going to

641
00:39:11,300 --> 00:39:13,200
be very important.
That'll be a trend moving

642
00:39:13,200 --> 00:39:15,000
forward.
I'm sure making its way across

643
00:39:15,000 --> 00:39:19,000
to the US and at some point you
know, when you think about the

644
00:39:19,000 --> 00:39:24,100
B2B Downstream type you know,
expectations from you know, a

645
00:39:24,107 --> 00:39:29,800
company purchasing products, I
mean right now I've seen some

646
00:39:30,000 --> 00:39:35,400
recent Product labeling, so to
speak, where you're going to buy

647
00:39:35,500 --> 00:39:38,300
a product and at the, you know,
the bottom of the product or

648
00:39:38,308 --> 00:39:41,800
somewhere, you know, on the code
or somewhere on the bag, or

649
00:39:41,800 --> 00:39:44,000
whatever, you're buying.
It's going to give you a

650
00:39:44,000 --> 00:39:48,700
greenhouse gas score, right?
And impact score on the unit.

651
00:39:48,700 --> 00:39:52,200
You know what that eunuch impact
is to to making a producing that

652
00:39:52,200 --> 00:39:55,100
product?
I mean, are we talking about

653
00:39:55,100 --> 00:40:00,700
that level of required reporting
to a basically summarize, the

654
00:40:00,700 --> 00:40:02,300
impact that people for the
products.

655
00:40:02,500 --> 00:40:05,000
Or buying see because if you're
going to buy a thousand units of

656
00:40:05,000 --> 00:40:07,200
those things, you could just
take that number times, 1000,

657
00:40:07,200 --> 00:40:11,000
you're going to know what your
score is, and what your down,

658
00:40:11,400 --> 00:40:15,000
indirect cost are right or unit
gas emission it are.

659
00:40:15,400 --> 00:40:18,700
Absolutely.
So, so far, we are in the

660
00:40:19,400 --> 00:40:23,800
process of corporate reporting
and classification.

661
00:40:24,200 --> 00:40:30,600
And we're moving slower to the
product and classification.

662
00:40:30,600 --> 00:40:34,300
We are not there yet for sure.
So although there are thousands

663
00:40:34,300 --> 00:40:38,200
of grain labels, right?
If you know if you if you pick

664
00:40:38,200 --> 00:40:41,300
up any product, you going to
find at least three or four per

665
00:40:41,300 --> 00:40:43,400
product.
This is not necessarily

666
00:40:43,400 --> 00:40:45,600
classification.
Classification as you very

667
00:40:45,600 --> 00:40:50,500
correct, mention is a score
within a unified and accepted

668
00:40:50,500 --> 00:40:55,100
system of Gene.
We are not there yet, we are

669
00:40:55,100 --> 00:40:59,100
moving towards this direction
and I believe in 45 years from

670
00:40:59,100 --> 00:41:01,900
now, we're going to be there but
not yet.

671
00:41:02,800 --> 00:41:06,100
So there's gonna be a lot of
room there between now and say

672
00:41:06,100 --> 00:41:09,100
four or five years from now
because if the, if the

673
00:41:09,100 --> 00:41:12,100
requirements is our from a
disclosure perspective, say of

674
00:41:12,100 --> 00:41:16,300
the SEC to require your
Downstream indirect greenhouse

675
00:41:16,300 --> 00:41:20,600
gas emission cost from raw
materials, you're going to need

676
00:41:20,600 --> 00:41:22,700
are going to have to, they're
going to make these people.

677
00:41:22,700 --> 00:41:25,100
The suppliers pay for that are
being basically provide that

678
00:41:25,100 --> 00:41:26,700
information, right?
Yes.

679
00:41:27,100 --> 00:41:31,300
And then we need to have a
consumers engagement for as a

680
00:41:31,300 --> 00:41:34,100
consumers need to Have a ride
information.

681
00:41:34,300 --> 00:41:38,500
And yeah we're moving to
different era of communication

682
00:41:38,500 --> 00:41:42,000
to the consumers.
And and this is very challenging

683
00:41:42,000 --> 00:41:45,600
for the consumers, especially
for middle lower class because

684
00:41:45,600 --> 00:41:49,600
we have a lot of evidence that
the middle upper class are more

685
00:41:49,600 --> 00:41:53,800
sophisticated when they buy
green products.

686
00:41:53,800 --> 00:41:57,800
Also Millennials as well,
they're more sophisticated but

687
00:41:57,800 --> 00:42:01,600
then other part of the consumers
are not as sophisticated as we

688
00:42:01,600 --> 00:42:04,100
want that in.
To prefer more standard

689
00:42:04,100 --> 00:42:05,300
products.
Van be ours.

690
00:42:06,200 --> 00:42:09,300
Yeah, I'm going to be, it'll be
interesting to see what kind of

691
00:42:09,300 --> 00:42:12,400
standards are going to be set
up, or at least some guidelines

692
00:42:12,400 --> 00:42:15,700
to, you know, providing that
score or that rating, you know,

693
00:42:15,700 --> 00:42:20,400
of some sort for these material
suppliers of products that will

694
00:42:20,400 --> 00:42:22,400
be interesting to see how that
evolves over time.

695
00:42:22,800 --> 00:42:24,500
Yeah.
Obviously, the business do not

696
00:42:24,500 --> 00:42:27,300
want that to happen, right?
Yeah, now, they got to,

697
00:42:27,400 --> 00:42:29,600
basically dire sustainability
professionals.

698
00:42:29,600 --> 00:42:34,400
Don't forget this more of Those
amazing hate combines and

699
00:42:37,600 --> 00:42:40,300
another, another one of those
jobs in the 24 million are going

700
00:42:40,300 --> 00:42:42,300
to be created the next couple of
years, right?

701
00:42:42,600 --> 00:42:45,100
Right.
Well I'm seeing Trend in many

702
00:42:45,100 --> 00:42:47,500
large companies such as like
Siemens launching

703
00:42:47,500 --> 00:42:51,000
decarbonization programs to
helps fund small and medium

704
00:42:51,000 --> 00:42:55,500
Enterprises this SME typa
concept with consulting services

705
00:42:55,500 --> 00:42:59,300
and capital and and key
Technologies you know what do

706
00:42:59,300 --> 00:43:01,900
you see Trends there?
I mean it sounds like there's a

707
00:43:01,908 --> 00:43:06,200
lot of Other companies wanting
to create services and tools to

708
00:43:06,200 --> 00:43:08,500
help people do it.
Since they're already kind of

709
00:43:08,508 --> 00:43:12,500
ahead of the game.
Yes, you're talking about

710
00:43:12,600 --> 00:43:16,700
companies are consulting firms.
Well companies like Siemens

711
00:43:16,700 --> 00:43:19,000
launching the whole
decarbonization program.

712
00:43:19,000 --> 00:43:21,800
I don't typically think of
Siemens as a consulting company.

713
00:43:21,800 --> 00:43:24,900
I think him as a manufacturer of
products but they're obviously

714
00:43:24,900 --> 00:43:27,000
offering Consulting Services
now.

715
00:43:27,700 --> 00:43:33,700
Yes, look, I mean what happened
is that they all big business

716
00:43:33,800 --> 00:43:37,400
especially the big accounting
firms but they're go specialized

717
00:43:37,400 --> 00:43:40,600
in accounting obviously they so
be copper.

718
00:43:40,800 --> 00:43:44,400
You need this in carbon
emissions reduction, and they

719
00:43:44,400 --> 00:43:49,000
either invest in creating new
technologies, or tools or

720
00:43:49,400 --> 00:43:54,000
whatever other initiatives in
order to help business towards

721
00:43:54,000 --> 00:43:57,500
the carbonization programs.
This is going to be challenging

722
00:43:57,500 --> 00:44:02,200
process for special Industries,
like Airlines have a good

723
00:44:02,200 --> 00:44:06,300
Medical Care can either lines?
Yeah, no that one, the

724
00:44:06,300 --> 00:44:10,900
carbonized, the shipping
industry which are moving Don't

725
00:44:10,900 --> 00:44:14,500
know.
It's moving the ward right,

726
00:44:14,500 --> 00:44:16,200
right.
Where the technology is not

727
00:44:16,200 --> 00:44:18,000
there yet, right?
Right.

728
00:44:18,000 --> 00:44:20,600
So, we're talking
decarbonization, but in some

729
00:44:20,600 --> 00:44:24,700
sectors like Airlines and
shipping industry the technology

730
00:44:24,800 --> 00:44:27,400
for helping them to do.
That is not ready.

731
00:44:28,000 --> 00:44:29,200
Yeah.
They're going to need a partner

732
00:44:29,200 --> 00:44:33,600
with, you know, companies who
can help base masek Ali develop

733
00:44:33,700 --> 00:44:39,000
customized programs for them.
And you know we can all Latino.

734
00:44:39,000 --> 00:44:44,100
If we have to be honest, we need
A lot of investment in R&D in

735
00:44:44,100 --> 00:44:46,500
order to create new
technologies, which can be

736
00:44:46,500 --> 00:44:51,400
available for airliners like
Boeing and Airbus, and sipping.

737
00:44:51,500 --> 00:44:56,000
You know, Sofia companies in
order to do this transformation.

738
00:44:56,000 --> 00:45:00,500
I mean both that both Industries
are responsible for I believe

739
00:45:00,500 --> 00:45:02,900
almost 40% of a global
emissions.

740
00:45:02,900 --> 00:45:07,100
So if a if we don't do that how
we're going to reduce our

741
00:45:07,100 --> 00:45:09,800
emissions.
Yeah I know there's there's a

742
00:45:09,800 --> 00:45:12,600
lot of focus on On, you know,
sustainable aviation fuel right

743
00:45:12,600 --> 00:45:15,000
now, which is great.
That's a good step.

744
00:45:15,400 --> 00:45:18,800
And there's a lot of other other
requirements for companies to

745
00:45:19,700 --> 00:45:22,500
airline companies to really help
improve their sustainability

746
00:45:22,500 --> 00:45:24,400
programs, and I'm aware of a
few.

747
00:45:24,400 --> 00:45:28,000
And so it's a big topic right
now for a lot of these

748
00:45:28,000 --> 00:45:30,600
companies.
Well there seems to be a lot of

749
00:45:30,607 --> 00:45:34,700
focus on scope three emissions
from business travel and from

750
00:45:34,700 --> 00:45:37,400
companies, you know, in the
supply chain how difficult is it

751
00:45:37,408 --> 00:45:40,600
going to be moving forward to
really you know, change it?

752
00:45:40,800 --> 00:45:42,900
We've been doing business.
We've been touching on this with

753
00:45:42,900 --> 00:45:45,100
this scope three down gradient
stuff.

754
00:45:45,100 --> 00:45:47,700
But how hard is this going to be
for business to really manage?

755
00:45:48,000 --> 00:45:51,100
Yes, let me clarify for the
audience about scope, free

756
00:45:51,100 --> 00:45:55,200
emissions, are emissions that
are in direct to their business,

757
00:45:55,600 --> 00:45:58,800
and it has to do with business
traveling with employees

758
00:45:58,800 --> 00:46:02,800
commute, but mostly with their
supply chain, and the supply

759
00:46:02,800 --> 00:46:06,800
chain is by far most of the
missions in every business.

760
00:46:07,300 --> 00:46:10,600
So for business traveling, the
good news is that it's very

761
00:46:10,600 --> 00:46:12,400
easy.
Easy to capture your carbon

762
00:46:12,400 --> 00:46:15,500
footprint there.
So they're different carbon

763
00:46:15,500 --> 00:46:19,300
offsetting programs, where you
can offset your carbon

764
00:46:19,300 --> 00:46:20,600
emissions, through business
traveling.

765
00:46:20,600 --> 00:46:23,000
But also, you can reduce
business traveling today with

766
00:46:23,000 --> 00:46:25,300
covid.
Most of the meetings are taking

767
00:46:25,300 --> 00:46:27,900
place through Zoom or WebEx.
Yep.

768
00:46:27,900 --> 00:46:32,600
What firms also a lot of
conferences so II don't believe

769
00:46:32,600 --> 00:46:34,600
it's going to be a very big
challenge.

770
00:46:34,900 --> 00:46:38,600
The big challenge is going to be
on the supply chain because

771
00:46:38,600 --> 00:46:43,700
we're talking about Hundreds of
business in every supply chain

772
00:46:43,700 --> 00:46:45,600
involved in all around the
globe.

773
00:46:45,600 --> 00:46:49,600
But always businesses are
operating or around the globe,

774
00:46:49,700 --> 00:46:51,900
and that there's not going to be
easy.

775
00:46:51,900 --> 00:46:56,400
So we get to see a lot of
pressure from the corporations

776
00:46:56,700 --> 00:47:02,300
to supply to the companies in
their supply chain also to

777
00:47:02,300 --> 00:47:07,200
become Net Zero.
So the next way is the supply

778
00:47:07,200 --> 00:47:09,400
chain of the Communist to become
Net Zero.

779
00:47:10,000 --> 00:47:14,500
You know, this is A reminiscent
of say the safety culture in the

780
00:47:14,500 --> 00:47:17,200
industry.
So you know companies really

781
00:47:17,200 --> 00:47:22,100
started to push on their third
party vendors to to really be

782
00:47:22,400 --> 00:47:24,900
safe companies, right?
Because if they hire them they

783
00:47:24,900 --> 00:47:28,000
can't bring them on their sites
and and have safety incidences

784
00:47:28,000 --> 00:47:31,100
and things like that.
So there was always a flow down

785
00:47:31,100 --> 00:47:34,100
of expectations of say
practices.

786
00:47:34,100 --> 00:47:36,700
I see this is a very similar
process with DSG.

787
00:47:36,700 --> 00:47:40,800
It's like it's going to be a
flow down to their suppliers to

788
00:47:40,900 --> 00:47:43,000
To demonstrate.
They have a really good

789
00:47:43,000 --> 00:47:47,100
sustainability program and also
there they know, you know what

790
00:47:47,100 --> 00:47:50,100
the emissions are from the
purchasing of these products for

791
00:47:50,100 --> 00:47:52,300
and good services from from
them.

792
00:47:53,600 --> 00:47:57,900
And I see that there's probably
an opportunity that you know if

793
00:47:57,900 --> 00:48:01,400
I'm if I'm a business guy and a
company, I'm going to be really

794
00:48:01,400 --> 00:48:06,000
evaluating my contracts with my
third party suppliers to weave

795
00:48:06,000 --> 00:48:10,300
in language, in my contract.
That's going to require these

796
00:48:10,300 --> 00:48:14,600
companies You provide, you know,
sustainability metrics and and

797
00:48:15,000 --> 00:48:17,900
you know, ESG information.
So it's tied to their contract.

798
00:48:17,900 --> 00:48:20,600
I think that's the easiest way
to get this information right

799
00:48:20,600 --> 00:48:21,600
off the bat.
What do you think?

800
00:48:23,000 --> 00:48:27,000
Yes, but if you need the
criteria but yeah that's it is

801
00:48:27,000 --> 00:48:30,800
companies they need to this
companies may need to upload

802
00:48:30,800 --> 00:48:33,800
information and that they meet
the criteria.

803
00:48:34,100 --> 00:48:38,400
So you need some kind of
assessment and some cases an

804
00:48:38,400 --> 00:48:42,600
audit because don't forget, most
of the sustainability related

805
00:48:42,600 --> 00:48:45,800
scandals or learn about ethical
Behavior.

806
00:48:46,100 --> 00:48:50,600
Was taking place in the supply
chain and the developing world

807
00:48:50,800 --> 00:48:54,800
were not a lot of Lot of
legislation there.

808
00:48:55,100 --> 00:48:58,600
I was reading an article that
came out just recently on the

809
00:48:58,600 --> 00:49:02,800
SEC, but they said that
basically, they're estimating

810
00:49:02,800 --> 00:49:05,900
that excluding emission
excluding indirect emissions

811
00:49:05,900 --> 00:49:09,400
from companies as about 75
percent of the greenhouse gas

812
00:49:09,400 --> 00:49:12,500
emissions that you know,
companies are contributing to.

813
00:49:12,500 --> 00:49:16,500
So that's a huge number by not
having this information from

814
00:49:16,500 --> 00:49:20,600
your suppliers.
And in some cases is up to 92

815
00:49:20,600 --> 00:49:22,100
percent.
Wow.

816
00:49:22,100 --> 00:49:26,600
So right, right.
So wow, so really this need to

817
00:49:26,600 --> 00:49:31,000
get your indirect greenhouse gas
emissions, from your suppliers

818
00:49:31,000 --> 00:49:33,900
is going to be so important over
the next few years.

819
00:49:34,300 --> 00:49:37,100
Absolutely as so far, we have
commitments for companies to

820
00:49:37,107 --> 00:49:41,500
become men, 04 scope 1 and 2
emissions, but not necessarily

821
00:49:41,500 --> 00:49:44,900
for scope three great.
Obviously it's challenging.

822
00:49:45,200 --> 00:49:46,100
Wow!
Wow.

823
00:49:46,100 --> 00:49:50,100
Well look Niko's, we've covered
Heard a lot of great topics

824
00:49:50,100 --> 00:49:52,400
today.
We've, we've had three segments

825
00:49:52,400 --> 00:49:56,200
that have been really put
together to kind of break down

826
00:49:56,200 --> 00:49:59,300
some of this information.
This has been a really good

827
00:49:59,300 --> 00:50:01,300
episode.
I'm looking forward to bringing

828
00:50:01,300 --> 00:50:03,200
you back on in about another
couple months.

829
00:50:03,200 --> 00:50:06,400
We'll get into some more and
more details on within the

830
00:50:06,400 --> 00:50:10,100
sustainability sphere of
practice.

831
00:50:10,700 --> 00:50:13,300
I really appreciate you for
coming on the show today.

832
00:50:18,100 --> 00:50:20,600
I want to thank our guests.
Niko's have Lana's for coming

833
00:50:20,600 --> 00:50:23,100
onto the show today.
If you want to learn more about

834
00:50:23,100 --> 00:50:26,100
Niko's in his company, the
center for sustainability and

835
00:50:26,100 --> 00:50:29,700
excellence and the services they
offer, you can go to their

836
00:50:29,700 --> 00:50:35,100
website at www.csiro.au.
Net dot org.

837
00:50:35,100 --> 00:50:40,500
That's www.cpsc.gov net dot org.
You can also connect with him

838
00:50:40,500 --> 00:50:44,000
via LinkedIn and I'll also put
us in contact information on my

839
00:50:44,000 --> 00:50:46,300
website to listen to Future
Environmental.

840
00:50:46,300 --> 00:50:48,800
Transformation podcast.
You can check us out on Apple

841
00:50:48,800 --> 00:50:53,100
podcast Spotify, Google podcast
and other podcast networks or

842
00:50:53,100 --> 00:50:58,100
better yet from my website at
www.ge.com K great e.com.

843
00:50:58,100 --> 00:51:01,700
And you can also follow me on
Instagram over the environmental

844
00:51:01,700 --> 00:51:04,700
transformation podcast, Facebook
page.

845
00:51:04,700 --> 00:51:07,900
If you enjoyed the podcast
episode, don't forget to

846
00:51:07,900 --> 00:51:10,600
subscribe and tell your friends.
I'd also like to hear your

847
00:51:10,600 --> 00:51:14,300
feedback from the ET Nation
about the episode and any other

848
00:51:14,300 --> 00:51:18,000
future podcast topics you'd like
me to to cover Well for now,

849
00:51:18,000 --> 00:51:20,400
thanks for listening.
And until next time, make a

850
00:51:20,400 --> 00:51:22,900
positive impact in someone's
life today.