YouSaid · the spoken record

Matthew Weatherley-White

lines on the record: 115
first: 2016-09-09
most recent: 2016-09-09
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Yeah, see, that's where it gets really kind of slippery because. ESG disclosure Is being driven culturally at this point rather than legislatively or regulatory. There's no”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then the ESG movement sort of became relatively mainstream. I say relatively only because there's still a lot of asset managers that don't do that.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That was really started in Europe. UBS did a lot of really cool work around that early on. And yes, she's a little bit of a different idea. One of the core tenets of ESG is it's around risk mitigation. Understanding the risks related to poor governance, understanding the risks related to climate exposure or lack of sustainability issues, and then embedding that risk mitigation into your discounting models to determine future cash flows for a company and making your stock selection accordingly. And so ESG, in my mind, is really a little bit of a sort of a professionalization, as it were, of the SRI.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, it was a rounding error in the capital markets. And in some regards, SRI. Tightly defined is still. Of a rounding error in the capital markets because it's based on exclusionary Sometimes inclusionary screens. ESG was really the evolution of that environmental, social slash sustainable and governance. And that really came of age in the mid-90s when the European government said that large pension plans had to incorporate ESG analysis in their stock picking process.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Rubric also. Sometimes more recently probably. So SRI really sort of had its It's coming of age moment in the 70s and 80s with a lot of activists were turning to the capital markets and saying, we should be investing in companies that do a better job and we should not be investing in companies that aren't.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You laid it out quite well, perhaps unintentionally from a chronological perspective. SRI became ESG, became impact. Think about it pretty simplistically as SRI investing was primarily about not owning companies that were perceived to be doing something bad in the world.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And we know this, right? So we know it's not debatable that the burning of coal Imposes a cost on society primarily in environmental and healthcare costs. And those costs are not reflected in the price of the commodity so that the consumer of the commodity is not actually bearing the cost of consuming it. And I think that is the kind of a thing, that's the kind of dynamic that is shifting right now in the capital markets. And that's why when you think about optimization, right now the capital markets are moving away from coal for a whole bunch of reasons, some of which are regulatory, right?”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, we are. And that's part of the dynamics around the collapse of price and the rate of bankruptcy filings among coal mining companies. But where I was going was a little bit different, and that is that the price of coal to date does not price in the externalities And I'm not saying climate change”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's a soft target, but nevertheless it's illustrative. If you are the CFO of an aluminum company and the CEO comes to you and says, look, we need to find another 1% net operating margin, go find it. You're going to look at your inputs, right? And your single largest input in aluminum smelting process. Is energy. And so you're going to look for the cheapest energy. And to date, the cheapest energy has been coal. That's why a lot of the aluminum smelters are in Appalachia.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I don't like to say it that way, but you're right. And the reason I say that is that As an example, I think that the science around climate change is crystallizing, and regardless of what one believes relative to man's relationship to the climate, we recognize that the climate is shifting and we recognize it on some level, the increased concentration of greenhouse gases and carbon is part of that, right? And so, and the more we know that... Less defensible the position that we shouldn't care about it becomes. As an example, I like to use the pricing of coal, and it's an easy target right now because of what's happened over the last couple of years in the coal industry, right? Right.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think it's easy to go back to that statement of the business of business as business and the highest end of business is not.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think that's actually true, and that's why capitalism as both a sort of financial organizing structure and as a cultural underpinning is so fascinating because it is unarguable that capital flows where it is treated best and stays where it's most appreciated, right? It's very difficult, if not impossible, to impose an artificial set of objectives that will violate that fundamental premise. And so the question that I like to ask myself is not, is capitalism good, is capitalism evil, is capitalism intrinsically beneficial or intrinsically destructive. I'm thinking about Piketty's book, Capital, for example. I think that's not actually the right question. The question is, to what end? Do we seek to optimize? And the question that I kind of keep coming back to.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I like to think of capital flows as being driven by gravity. Capital flows to its most efficient utilization. But that implies a set of assumptions that aren't always explicit in the statement. And by that I mean, what is it that capital is optimizing for?”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's been surpassed. It has been surpassed, and I think it might actually have been the shortest world record holding 10 year in the history of any competitive sport. I set the world record in the heats of an event that was then eclipsed in the finals. Oh, there you go. Yeah, it's...”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, thanks, Barry. It's great to be here. And obviously, you've heard of me, so it's not that no one's heard of me, but I'm putting you on the list of people who have heard of me.”
2016-09-09 · Masters in Business · Interview With Matthew Weatherley-White: MIB (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source