WEBVTT Kind: captions Language: en 00:00:07.560 --> 00:00:09.310 align:start position:0% hello<00:00:07.839> everyone<00:00:08.240> and<00:00:08.440> welcome<00:00:08.719> to<00:00:08.920> Theory 00:00:09.310 --> 00:00:09.320 align:start position:0% hello everyone and welcome to Theory 00:00:09.320 --> 00:00:11.789 align:start position:0% hello everyone and welcome to Theory meet<00:00:09.679> practice<00:00:10.240> our<00:00:10.599> video<00:00:10.960> series<00:00:11.440> about 00:00:11.789 --> 00:00:11.799 align:start position:0% meet practice our video series about 00:00:11.799 --> 00:00:13.749 align:start position:0% meet practice our video series about academic<00:00:12.240> research<00:00:12.679> into<00:00:13.200> sustainable 00:00:13.749 --> 00:00:13.759 align:start position:0% academic research into sustainable 00:00:13.759 --> 00:00:16.310 align:start position:0% academic research into sustainable finance<00:00:14.440> and<00:00:14.599> the<00:00:14.759> lessons<00:00:15.480> investors<00:00:16.080> can 00:00:16.310 --> 00:00:16.320 align:start position:0% finance and the lessons investors can 00:00:16.320 --> 00:00:19.750 align:start position:0% finance and the lessons investors can take<00:00:16.560> from<00:00:16.760> it<00:00:17.760> in<00:00:18.000> 2019<00:00:18.920> a<00:00:19.080> working<00:00:19.400> paper 00:00:19.750 --> 00:00:19.760 align:start position:0% take from it in 2019 a working paper 00:00:19.760 --> 00:00:21.630 align:start position:0% take from it in 2019 a working paper published<00:00:20.160> by<00:00:20.320> three<00:00:20.640> Finance<00:00:21.160> professors 00:00:21.630 --> 00:00:21.640 align:start position:0% published by three Finance professors 00:00:21.640 --> 00:00:23.790 align:start position:0% published by three Finance professors from<00:00:21.880> MIT<00:00:22.880> caught<00:00:23.160> the<00:00:23.279> attentional<00:00:23.680> of 00:00:23.790 --> 00:00:23.800 align:start position:0% from MIT caught the attentional of 00:00:23.800 --> 00:00:25.910 align:start position:0% from MIT caught the attentional of investors<00:00:24.519> with<00:00:24.680> an<00:00:24.920> examination<00:00:25.680> of 00:00:25.910 --> 00:00:25.920 align:start position:0% investors with an examination of 00:00:25.920 --> 00:00:28.870 align:start position:0% investors with an examination of differences<00:00:26.519> among<00:00:26.880> ESG<00:00:27.400> ratings<00:00:28.279> by<00:00:28.480> six 00:00:28.870 --> 00:00:28.880 align:start position:0% differences among ESG ratings by six 00:00:28.880 --> 00:00:31.749 align:start position:0% differences among ESG ratings by six providers<00:00:29.480> including<00:00:30.000> msci<00:00:30.960> in<00:00:31.119> it<00:00:31.359> the<00:00:31.519> paper 00:00:31.749 --> 00:00:31.759 align:start position:0% providers including msci in it the paper 00:00:31.759 --> 00:00:33.910 align:start position:0% providers including msci in it the paper shows<00:00:32.160> that<00:00:32.399> ESG<00:00:32.840> ratings<00:00:33.160> from<00:00:33.399> competing 00:00:33.910 --> 00:00:33.920 align:start position:0% shows that ESG ratings from competing 00:00:33.920 --> 00:00:35.950 align:start position:0% shows that ESG ratings from competing providers<00:00:34.320> had<00:00:34.520> low<00:00:34.800> correlation<00:00:35.600> to<00:00:35.800> each 00:00:35.950 --> 00:00:35.960 align:start position:0% providers had low correlation to each 00:00:35.960 --> 00:00:37.990 align:start position:0% providers had low correlation to each other<00:00:36.760> and<00:00:36.920> the<00:00:37.040> paper<00:00:37.360> dissected<00:00:37.840> the 00:00:37.990 --> 00:00:38.000 align:start position:0% other and the paper dissected the 00:00:38.000 --> 00:00:39.869 align:start position:0% other and the paper dissected the sources<00:00:38.360> of<00:00:38.520> those<00:00:38.719> differences<00:00:39.520> so<00:00:39.680> the 00:00:39.869 --> 00:00:39.879 align:start position:0% sources of those differences so the 00:00:39.879 --> 00:00:41.950 align:start position:0% sources of those differences so the paper<00:00:40.440> aggregate<00:00:40.920> confusion<00:00:41.360> the<00:00:41.520> Divergence 00:00:41.950 --> 00:00:41.960 align:start position:0% paper aggregate confusion the Divergence 00:00:41.960 --> 00:00:44.150 align:start position:0% paper aggregate confusion the Divergence of<00:00:42.120> EST<00:00:42.520> ratings<00:00:43.280> which<00:00:43.440> was<00:00:43.640> eventually 00:00:44.150 --> 00:00:44.160 align:start position:0% of EST ratings which was eventually 00:00:44.160 --> 00:00:47.470 align:start position:0% of EST ratings which was eventually published<00:00:44.559> in<00:00:45.039> 2022<00:00:46.039> and<00:00:46.160> won<00:00:46.399> the<00:00:46.520> 2023 00:00:47.470 --> 00:00:47.480 align:start position:0% published in 2022 and won the 2023 00:00:47.480 --> 00:00:49.790 align:start position:0% published in 2022 and won the 2023 Pagano<00:00:48.120> and<00:00:48.280> zacko<00:00:48.879> prize<00:00:49.160> for<00:00:49.360> the<00:00:49.559> best 00:00:49.790 --> 00:00:49.800 align:start position:0% Pagano and zacko prize for the best 00:00:49.800 --> 00:00:51.430 align:start position:0% Pagano and zacko prize for the best non-investment<00:00:50.600> paper<00:00:50.879> published<00:00:51.239> in<00:00:51.320> the 00:00:51.430 --> 00:00:51.440 align:start position:0% non-investment paper published in the 00:00:51.440 --> 00:00:53.389 align:start position:0% non-investment paper published in the review<00:00:51.719> of<00:00:51.920> finance<00:00:52.840> and<00:00:52.920> so<00:00:53.079> it's<00:00:53.239> my 00:00:53.389 --> 00:00:53.399 align:start position:0% review of finance and so it's my 00:00:53.399 --> 00:00:54.950 align:start position:0% review of finance and so it's my privilege<00:00:53.719> today<00:00:53.960> to<00:00:54.079> be<00:00:54.199> in<00:00:54.359> conversation 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SLO School of 00:01:03.519 --> 00:01:05.270 align:start position:0% professor at MIT SLO School of Management<00:01:04.040> and<00:01:04.199> founder<00:01:04.600> of<00:01:04.760> the<00:01:04.879> aggregate 00:01:05.270 --> 00:01:05.280 align:start position:0% Management and founder of the aggregate 00:01:05.280 --> 00:01:07.190 align:start position:0% Management and founder of the aggregate confusion<00:01:05.840> project<00:01:06.439> we<00:01:06.560> are<00:01:06.680> thrilled<00:01:07.040> to 00:01:07.190 --> 00:01:07.200 align:start position:0% confusion project we are thrilled to 00:01:07.200 --> 00:01:09.749 align:start position:0% confusion project we are thrilled to have<00:01:07.320> him<00:01:07.520> with<00:01:07.680> us<00:01:08.200> welcome<00:01:09.200> thank<00:01:09.360> you<00:01:09.520> so 00:01:09.749 --> 00:01:09.759 align:start position:0% have him with us welcome thank you so 00:01:09.759 --> 00:01:11.230 align:start position:0% have him with us welcome thank you so much<00:01:10.000> and<00:01:10.200> thank<00:01:10.320> you<00:01:10.400> for<00:01:10.560> the<00:01:10.799> kind 00:01:11.230 --> 00:01:11.240 align:start position:0% much and thank you for the kind 00:01:11.240 --> 00:01:12.950 align:start position:0% much and thank you for the kind introduction<00:01:12.240> well<00:01:12.400> you<00:01:12.479> know<00:01:12.600> the<00:01:12.720> number 00:01:12.950 --> 00:01:12.960 align:start position:0% introduction well you know the number 00:01:12.960 --> 00:01:14.429 align:start position:0% introduction well you know the number one<00:01:13.159> question<00:01:13.479> I've<00:01:13.640> gotten<00:01:13.880> over<00:01:14.080> the<00:01:14.159> years 00:01:14.429 --> 00:01:14.439 align:start position:0% one question I've gotten over the years 00:01:14.439 --> 00:01:16.630 align:start position:0% one question I've gotten over the years over<00:01:14.640> and<00:01:14.799> over<00:01:15.080> again<00:01:15.360> actually<00:01:16.040> is<00:01:16.159> you<00:01:16.240> know 00:01:16.630 --> 00:01:16.640 align:start position:0% over and over again actually is you know 00:01:16.640 --> 00:01:19.789 align:start position:0% over and over again actually is you know why<00:01:17.080> is<00:01:17.280> your<00:01:17.840> ESU<00:01:18.320> rating<00:01:18.600> the<00:01:18.720> MS<00:01:19.159> ESU<00:01:19.520> rating 00:01:19.789 --> 00:01:19.799 align:start position:0% why is your ESU rating the MS ESU rating 00:01:19.799 --> 00:01:22.590 align:start position:0% why is your ESU rating the MS ESU rating for<00:01:20.040> company<00:01:20.360> X<00:01:20.640> so<00:01:20.920> low<00:01:21.640> when<00:01:21.880> say<00:01:22.159> sustain 00:01:22.590 --> 00:01:22.600 align:start position:0% for company X so low when say sustain 00:01:22.600 --> 00:01:24.789 align:start position:0% for company X so low when say sustain atletics<00:01:23.079> gives<00:01:23.240> it<00:01:23.320> a<00:01:23.479> high<00:01:23.640> rating<00:01:24.479> so<00:01:24.720> I 00:01:24.789 --> 00:01:24.799 align:start position:0% atletics gives it a high rating so I 00:01:24.799 --> 00:01:26.590 align:start position:0% atletics gives it a high rating so I think<00:01:25.119> clients<00:01:25.520> you<00:01:25.640> know<00:01:25.799> keep<00:01:26.079> asking<00:01:26.400> us 00:01:26.590 --> 00:01:26.600 align:start position:0% think clients you know keep asking us 00:01:26.600 --> 00:01:27.870 align:start position:0% think clients you know keep asking us that<00:01:26.759> question<00:01:27.040> but<00:01:27.159> it's<00:01:27.400> actually<00:01:27.680> really 00:01:27.870 --> 00:01:27.880 align:start position:0% that question but it's actually really 00:01:27.880 --> 00:01:29.630 align:start position:0% that question but it's actually really hard<00:01:28.040> for<00:01:28.240> us<00:01:28.400> to<00:01:28.600> answer<00:01:29.119> for<00:01:29.320> the<00:01:29.439> very 00:01:29.630 --> 00:01:29.640 align:start position:0% hard for us to answer for the very 00:01:29.640 --> 00:01:31.350 align:start position:0% hard for us to answer for the very practi<00:01:29.880> iCal<00:01:30.240> reason<00:01:30.520> that<00:01:30.680> I<00:01:30.799> don't<00:01:31.079> actually 00:01:31.350 --> 00:01:31.360 align:start position:0% practi iCal reason that I don't actually 00:01:31.360 --> 00:01:32.950 align:start position:0% practi iCal reason that I don't actually subscribe<00:01:31.799> to<00:01:31.960> other<00:01:32.159> ratings<00:01:32.560> and<00:01:32.680> so<00:01:32.880> I 00:01:32.950 --> 00:01:32.960 align:start position:0% subscribe to other ratings and so I 00:01:32.960 --> 00:01:34.830 align:start position:0% subscribe to other ratings and so I don't<00:01:33.159> know<00:01:33.479> the<00:01:33.600> finer<00:01:33.920> points<00:01:34.159> of<00:01:34.280> their 00:01:34.830 --> 00:01:34.840 align:start position:0% don't know the finer points of their 00:01:34.840 --> 00:01:36.710 align:start position:0% don't know the finer points of their methodology<00:01:35.840> um<00:01:36.040> but<00:01:36.200> you<00:01:36.360> and<00:01:36.520> your 00:01:36.710 --> 00:01:36.720 align:start position:0% methodology um but you and your 00:01:36.720 --> 00:01:39.109 align:start position:0% methodology um but you and your colleagues<00:01:37.320> Florian<00:01:37.759> bur<00:01:38.200> and<00:01:38.320> Julian<00:01:38.680> kerbo 00:01:39.109 --> 00:01:39.119 align:start position:0% colleagues Florian bur and Julian kerbo 00:01:39.119 --> 00:01:40.710 align:start position:0% colleagues Florian bur and Julian kerbo were<00:01:39.320> able<00:01:39.560> to<00:01:39.799> access<00:01:40.119> the<00:01:40.280> scores<00:01:40.560> and 00:01:40.710 --> 00:01:40.720 align:start position:0% were able to access the scores and 00:01:40.720 --> 00:01:43.149 align:start position:0% were able to access the scores and ratings<00:01:41.040> of<00:01:41.200> multiple<00:01:41.680> providers<00:01:42.560> so<00:01:42.840> explain 00:01:43.149 --> 00:01:43.159 align:start position:0% ratings of multiple providers so explain 00:01:43.159 --> 00:01:45.190 align:start position:0% ratings of multiple providers so explain to<00:01:43.320> us<00:01:43.520> what<00:01:43.720> actually<00:01:44.000> accounts<00:01:44.320> for<00:01:44.479> these 00:01:45.190 --> 00:01:45.200 align:start position:0% to us what actually accounts for these 00:01:45.200 --> 00:01:47.069 align:start position:0% to us what actually accounts for these differences<00:01:46.200> actually<00:01:46.479> there<00:01:46.600> are<00:01:46.759> three 00:01:47.069 --> 00:01:47.079 align:start position:0% differences actually there are three 00:01:47.079 --> 00:01:49.910 align:start position:0% differences actually there are three reasons<00:01:47.680> why<00:01:48.360> uh<00:01:48.600> the<00:01:48.840> ratings<00:01:49.360> tend<00:01:49.600> to 00:01:49.910 --> 00:01:49.920 align:start position:0% reasons why uh the ratings tend to 00:01:49.920 --> 00:01:52.350 align:start position:0% reasons why uh the ratings tend to differ<00:01:50.439> so<00:01:50.680> one<00:01:50.880> is<00:01:51.040> when<00:01:51.159> you<00:01:51.320> go<00:01:51.520> to 00:01:52.350 --> 00:01:52.360 align:start position:0% differ so one is when you go to 00:01:52.360 --> 00:01:54.709 align:start position:0% differ so one is when you go to relatively<00:01:52.920> narrowly<00:01:53.479> defined<00:01:54.479> uh 00:01:54.709 --> 00:01:54.719 align:start position:0% relatively narrowly defined uh 00:01:54.719 --> 00:01:56.190 align:start position:0% relatively narrowly defined uh attributes<00:01:55.360> let's<00:01:55.600> say<00:01:55.840> that<00:01:55.960> you<00:01:56.039> are 00:01:56.190 --> 00:01:56.200 align:start position:0% attributes let's say that you are 00:01:56.200 --> 00:01:58.789 align:start position:0% attributes let's say that you are thinking<00:01:56.520> about<00:01:57.240> Labor<00:01:57.680> treatment<00:01:58.280> and<00:01:58.680> by 00:01:58.789 --> 00:01:58.799 align:start position:0% thinking about Labor treatment and by 00:01:58.799 --> 00:02:01.029 align:start position:0% thinking about Labor treatment and by the<00:01:58.920> way<00:01:59.159> this<00:01:59.399> can<00:01:59.600> go<00:01:59.920> even<00:02:00.159> finer<00:02:00.759> that<00:02:00.880> is 00:02:01.029 --> 00:02:01.039 align:start position:0% the way this can go even finer that is 00:02:01.039 --> 00:02:04.709 align:start position:0% the way this can go even finer that is labor<00:02:01.360> treatment<00:02:01.759> of<00:02:01.920> women<00:02:02.200> for<00:02:02.680> example<00:02:03.719> uh 00:02:04.709 --> 00:02:04.719 align:start position:0% labor treatment of women for example uh 00:02:04.719 --> 00:02:06.590 align:start position:0% labor treatment of women for example uh different<00:02:05.320> data<00:02:05.640> providers<00:02:06.039> use<00:02:06.280> this 00:02:06.590 --> 00:02:06.600 align:start position:0% different data providers use this 00:02:06.600 --> 00:02:08.669 align:start position:0% different data providers use this different<00:02:06.960> proxies<00:02:07.560> for<00:02:07.759> that<00:02:08.160> and<00:02:08.280> in<00:02:08.440> fact 00:02:08.669 --> 00:02:08.679 align:start position:0% different proxies for that and in fact 00:02:08.679 --> 00:02:10.070 align:start position:0% different proxies for that and in fact actually<00:02:09.000> what<00:02:09.160> we<00:02:09.280> have<00:02:09.399> found<00:02:09.679> is<00:02:09.800> that<00:02:09.920> the 00:02:10.070 --> 00:02:10.080 align:start position:0% actually what we have found is that the 00:02:10.080 --> 00:02:12.710 align:start position:0% actually what we have found is that the proce<00:02:10.440> are<00:02:10.640> very<00:02:11.039> culturally<00:02:11.599> dependent<00:02:12.520> so 00:02:12.710 --> 00:02:12.720 align:start position:0% proce are very culturally dependent so 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position:0% that that give us the data they concentrate<00:02:21.160> on<00:02:21.519> Labor<00:02:22.280> uh<00:02:22.480> complaints<00:02:23.080> to<00:02:23.319> a 00:02:24.309 --> 00:02:24.319 align:start position:0% concentrate on Labor uh complaints to a 00:02:24.319 --> 00:02:27.030 align:start position:0% concentrate on Labor uh complaints to a judge<00:02:24.720> or<00:02:24.920> to<00:02:25.040> a<00:02:25.120> labor<00:02:25.640> Court<00:02:26.640> uh<00:02:26.760> which<00:02:26.879> is 00:02:27.030 --> 00:02:27.040 align:start position:0% judge or to a labor Court uh which is 00:02:27.040 --> 00:02:28.830 align:start position:0% judge or to a labor Court uh which is something<00:02:27.360> very<00:02:27.560> rare<00:02:27.800> in<00:02:28.000> United<00:02:28.360> States<00:02:28.680> in 00:02:28.830 --> 00:02:28.840 align:start position:0% something very rare in United States in 00:02:28.840 --> 00:02:30.949 align:start position:0% something very rare in United States in United<00:02:29.160> States<00:02:29.440> if<00:02:29.560> you<00:02:29.680> are<00:02:29.920> Ming<00:02:30.720> uh<00:02:30.840> a 00:02:30.949 --> 00:02:30.959 align:start position:0% United States if you are Ming uh a 00:02:30.959 --> 00:02:33.470 align:start position:0% United States if you are Ming uh a worker<00:02:31.360> they<00:02:31.680> typically<00:02:32.200> quit<00:02:33.000> so<00:02:33.319> the 00:02:33.470 --> 00:02:33.480 align:start position:0% worker they typically quit so the 00:02:33.480 --> 00:02:35.229 align:start position:0% worker they typically quit so the turnover<00:02:34.000> is<00:02:34.080> a<00:02:34.200> better<00:02:34.440> indicator<00:02:35.000> and<00:02:35.160> what 00:02:35.229 --> 00:02:35.239 align:start position:0% turnover is a better indicator and what 00:02:35.239 --> 00:02:36.710 align:start position:0% turnover is a better indicator and what is<00:02:35.400> very<00:02:35.599> interesting<00:02:36.000> is<00:02:36.120> that<00:02:36.239> if<00:02:36.360> you<00:02:36.480> think 00:02:36.710 --> 00:02:36.720 align:start position:0% is very interesting is that if you think 00:02:36.720 --> 00:02:39.229 align:start position:0% is very interesting is that if you think about<00:02:36.920> it<00:02:37.440> you<00:02:37.560> would<00:02:37.720> like<00:02:37.879> to<00:02:38.000> have<00:02:38.239> both 00:02:39.229 --> 00:02:39.239 align:start position:0% about it you would like to have both 00:02:39.239 --> 00:02:42.430 align:start position:0% about it you would like to have both sources<00:02:39.800> of<00:02:40.159> of<00:02:40.360> these<00:02:40.920> proxies<00:02:41.440> to<00:02:41.640> construct 00:02:42.430 --> 00:02:42.440 align:start position:0% sources of of these proxies to construct 00:02:42.440 --> 00:02:44.750 align:start position:0% sources of of these proxies to construct a<00:02:42.560> good<00:02:42.760> measure<00:02:43.040> of<00:02:43.200> Labor<00:02:43.560> treatment<00:02:44.560> but 00:02:44.750 --> 00:02:44.760 align:start position:0% a good measure of Labor treatment but 00:02:44.760 --> 00:02:47.070 align:start position:0% a good measure of Labor treatment but each<00:02:44.959> rating<00:02:45.400> agency<00:02:46.040> is<00:02:46.400> very<00:02:46.599> much<00:02:46.800> looking 00:02:47.070 --> 00:02:47.080 align:start position:0% each rating agency is very much looking 00:02:47.080 --> 00:02:49.110 align:start position:0% each rating agency is very much looking at<00:02:47.239> their<00:02:47.400> own<00:02:47.640> markets<00:02:48.080> to<00:02:48.319> decide<00:02:48.760> which<00:02:48.920> of 00:02:49.110 --> 00:02:49.120 align:start position:0% at their own markets to decide which of 00:02:49.120 --> 00:02:51.470 align:start position:0% at their own markets to decide which of these<00:02:49.800> should<00:02:50.040> be<00:02:50.200> used<00:02:50.599> so<00:02:50.800> that<00:02:50.959> produces<00:02:51.319> a 00:02:51.470 --> 00:02:51.480 align:start position:0% these should be used so that produces a 00:02:51.480 --> 00:02:53.270 align:start position:0% these should be used so that produces a measurement<00:02:52.000> error<00:02:52.640> is<00:02:52.760> that<00:02:52.920> we<00:02:53.040> use 00:02:53.270 --> 00:02:53.280 align:start position:0% measurement error is that we use 00:02:53.280 --> 00:02:56.149 align:start position:0% measurement error is that we use different<00:02:53.640> Proxes<00:02:54.640> and<00:02:54.800> that<00:02:55.000> explains<00:02:55.920> more 00:02:56.149 --> 00:02:56.159 align:start position:0% different Proxes and that explains more 00:02:56.159 --> 00:02:59.350 align:start position:0% different Proxes and that explains more than<00:02:56.480> half<00:02:56.640> of<00:02:56.760> the<00:02:56.959> discrepancy<00:02:57.760> like<00:02:58.360> 55% 00:02:59.350 --> 00:02:59.360 align:start position:0% than half of the discrepancy like 55% 00:02:59.360 --> 00:03:02.350 align:start position:0% than half of the discrepancy like 55% then<00:02:59.519> there's<00:02:59.640> a<00:02:59.959> second<00:03:00.400> part<00:03:01.400> which<00:03:01.560> is<00:03:02.159> all 00:03:02.350 --> 00:03:02.360 align:start position:0% then there's a second part which is all 00:03:02.360 --> 00:03:05.030 align:start position:0% then there's a second part which is all the<00:03:02.519> discussion<00:03:02.959> about<00:03:03.280> materiality<00:03:04.280> so<00:03:04.560> some 00:03:05.030 --> 00:03:05.040 align:start position:0% the discussion about materiality so some 00:03:05.040 --> 00:03:08.190 align:start position:0% the discussion about materiality so some rating<00:03:05.519> agencies<00:03:06.360> will<00:03:06.959> consider<00:03:07.959> again 00:03:08.190 --> 00:03:08.200 align:start position:0% rating agencies will consider again 00:03:08.200 --> 00:03:10.309 align:start position:0% rating agencies will consider again let's<00:03:08.360> say<00:03:08.519> labor<00:03:08.879> treatment<00:03:09.840> probably<00:03:10.159> is 00:03:10.309 --> 00:03:10.319 align:start position:0% let's say labor treatment probably is 00:03:10.319 --> 00:03:13.030 align:start position:0% let's say labor treatment probably is material<00:03:10.760> in<00:03:10.920> almost<00:03:11.280> all<00:03:11.480> the<00:03:11.879> companies<00:03:12.879> uh 00:03:13.030 --> 00:03:13.040 align:start position:0% material in almost all the companies uh 00:03:13.040 --> 00:03:14.550 align:start position:0% material in almost all the companies uh but<00:03:13.200> that<00:03:13.319> will<00:03:13.480> not<00:03:13.799> necessarily<00:03:14.200> be<00:03:14.360> true 00:03:14.550 --> 00:03:14.560 align:start position:0% but that will not necessarily be true 00:03:14.560 --> 00:03:16.949 align:start position:0% but that will not necessarily be true for<00:03:14.720> example<00:03:15.080> with<00:03:15.319> human<00:03:15.640> trafficking<00:03:16.400> so 00:03:16.949 --> 00:03:16.959 align:start position:0% for example with human trafficking so 00:03:16.959 --> 00:03:19.070 align:start position:0% for example with human trafficking so clothing<00:03:17.959> probably<00:03:18.280> I<00:03:18.360> will<00:03:18.560> pay<00:03:18.760> attention 00:03:19.070 --> 00:03:19.080 align:start position:0% clothing probably I will pay attention 00:03:19.080 --> 00:03:21.990 align:start position:0% clothing probably I will pay attention to<00:03:19.280> human<00:03:19.760> trafficking<00:03:20.760> uh<00:03:20.920> but<00:03:21.159> you<00:03:21.280> know<00:03:21.879> uh 00:03:21.990 --> 00:03:22.000 align:start position:0% to human trafficking uh but you know uh 00:03:22.000 --> 00:03:23.670 align:start position:0% to human trafficking uh but you know uh the<00:03:22.159> financial<00:03:22.599> system<00:03:23.000> I<00:03:23.080> will<00:03:23.280> pay<00:03:23.480> less 00:03:23.670 --> 00:03:23.680 align:start position:0% the financial system I will pay less 00:03:23.680 --> 00:03:26.190 align:start position:0% the financial system I will pay less attention<00:03:24.040> to<00:03:24.200> human<00:03:24.480> traffic<00:03:25.159> that<00:03:25.760> notion 00:03:26.190 --> 00:03:26.200 align:start position:0% attention to human traffic that notion 00:03:26.200 --> 00:03:28.470 align:start position:0% attention to human traffic that notion of<00:03:26.440> what<00:03:26.640> is<00:03:26.959> material<00:03:27.640> is<00:03:27.879> very<00:03:28.120> different 00:03:28.470 --> 00:03:28.480 align:start position:0% of what is material is very different 00:03:28.480 --> 00:03:30.869 align:start position:0% of what is material is very different across<00:03:28.920> the<00:03:29.200> data<00:03:29.439> provider<00:03:30.239> and<00:03:30.599> what<00:03:30.720> that 00:03:30.869 --> 00:03:30.879 align:start position:0% across the data provider and what that 00:03:30.879 --> 00:03:33.390 align:start position:0% across the data provider and what that implies<00:03:31.360> is<00:03:31.560> that<00:03:32.239> you<00:03:32.360> know<00:03:32.519> sustainalytics 00:03:33.390 --> 00:03:33.400 align:start position:0% implies is that you know sustainalytics 00:03:33.400 --> 00:03:35.390 align:start position:0% implies is that you know sustainalytics is<00:03:33.640> measuring<00:03:34.319> some<00:03:34.640> things<00:03:35.000> that<00:03:35.159> you<00:03:35.239> are 00:03:35.390 --> 00:03:35.400 align:start position:0% is measuring some things that you are 00:03:35.400 --> 00:03:37.309 align:start position:0% is measuring some things that you are not<00:03:35.599> measuring<00:03:36.080> and<00:03:36.239> then<00:03:36.400> msci<00:03:36.879> is<00:03:36.959> measuring 00:03:37.309 --> 00:03:37.319 align:start position:0% not measuring and then msci is measuring 00:03:37.319 --> 00:03:40.270 align:start position:0% not measuring and then msci is measuring other<00:03:37.760> things<00:03:38.760> and<00:03:38.920> we<00:03:39.080> call<00:03:39.319> that<00:03:39.480> a<00:03:39.680> scope 00:03:40.270 --> 00:03:40.280 align:start position:0% other things and we call that a scope 00:03:40.280 --> 00:03:42.710 align:start position:0% other things and we call that a scope differences<00:03:41.280> uh<00:03:41.400> so<00:03:42.000> I<00:03:42.040> mean<00:03:42.239> there's<00:03:42.480> no 00:03:42.710 --> 00:03:42.720 align:start position:0% differences uh so I mean there's no 00:03:42.720 --> 00:03:44.710 align:start position:0% differences uh so I mean there's no chance<00:03:43.000> you<00:03:43.120> will<00:03:43.319> ever<00:03:43.599> have<00:03:43.760> the<00:03:43.879> same<00:03:44.120> score 00:03:44.710 --> 00:03:44.720 align:start position:0% chance you will ever have the same score 00:03:44.720 --> 00:03:48.030 align:start position:0% chance you will ever have the same score if<00:03:45.000> if<00:03:45.159> you<00:03:45.480> do<00:03:45.680> not<00:03:45.879> measure<00:03:46.400> no<00:03:47.280> so<00:03:47.879> that 00:03:48.030 --> 00:03:48.040 align:start position:0% if if you do not measure no so that 00:03:48.040 --> 00:03:49.190 align:start position:0% if if you do not measure no so that explains<00:03:48.439> about 00:03:49.190 --> 00:03:49.200 align:start position:0% explains about 00:03:49.200 --> 00:03:52.830 align:start position:0% explains about 40%<00:03:50.200> and<00:03:50.360> the<00:03:50.480> other<00:03:51.040> 5%<00:03:52.040> is<00:03:52.239> what<00:03:52.400> I<00:03:52.560> thought 00:03:52.830 --> 00:03:52.840 align:start position:0% 40% and the other 5% is what I thought 00:03:52.840 --> 00:03:54.149 align:start position:0% 40% and the other 5% is what I thought was<00:03:53.040> important<00:03:53.480> that's<00:03:53.599> why<00:03:53.760> the<00:03:53.840> paper<00:03:54.040> is 00:03:54.149 --> 00:03:54.159 align:start position:0% was important that's why the paper is 00:03:54.159 --> 00:03:56.229 align:start position:0% was important that's why the paper is called<00:03:54.439> aggregate<00:03:55.120> confusion<00:03:55.720> because<00:03:56.120> I 00:03:56.229 --> 00:03:56.239 align:start position:0% called aggregate confusion because I 00:03:56.239 --> 00:03:57.830 align:start position:0% called aggregate confusion because I thought<00:03:56.560> that<00:03:56.720> the 00:03:57.830 --> 00:03:57.840 align:start position:0% thought that the 00:03:57.840 --> 00:04:00.270 align:start position:0% thought that the biggest<00:03:58.840> you<00:03:59.000> know<00:03:59.560> I<00:03:59.840> thought<00:04:00.000> that<00:04:00.120> the 00:04:00.270 --> 00:04:00.280 align:start position:0% biggest you know I thought that the 00:04:00.280 --> 00:04:01.630 align:start position:0% biggest you know I thought that the biggest<00:04:00.599> issue<00:04:00.840> was<00:04:01.000> going<00:04:01.159> to<00:04:01.280> be<00:04:01.439> that 00:04:01.630 --> 00:04:01.640 align:start position:0% biggest issue was going to be that 00:04:01.640 --> 00:04:03.390 align:start position:0% biggest issue was going to be that people<00:04:02.000> aggregate<00:04:02.560> these<00:04:02.720> numbers<00:04:03.159> with 00:04:03.390 --> 00:04:03.400 align:start position:0% people aggregate these numbers with 00:04:03.400 --> 00:04:05.630 align:start position:0% people aggregate these numbers with different<00:04:03.799> procedures<00:04:04.799> that<00:04:05.000> explains<00:04:05.400> only 00:04:05.630 --> 00:04:05.640 align:start position:0% different procedures that explains only 00:04:05.640 --> 00:04:07.470 align:start position:0% different procedures that explains only 5%<00:04:06.200> so<00:04:06.360> this<00:04:06.519> just<00:04:06.680> tells<00:04:06.879> you<00:04:07.040> how<00:04:07.159> much<00:04:07.280> I 00:04:07.470 --> 00:04:07.480 align:start position:0% 5% so this just tells you how much I 00:04:07.480 --> 00:04:09.270 align:start position:0% 5% so this just tells you how much I contribute<00:04:07.879> to<00:04:08.000> the<00:04:08.159> paper<00:04:08.439> my<00:04:08.640> idea<00:04:08.920> was<00:04:09.040> only 00:04:09.270 --> 00:04:09.280 align:start position:0% contribute to the paper my idea was only 00:04:09.280 --> 00:04:11.630 align:start position:0% contribute to the paper my idea was only 5%<00:04:10.120> well<00:04:10.280> I<00:04:10.439> really<00:04:10.720> like<00:04:10.920> the<00:04:11.040> framework<00:04:11.480> you 00:04:11.630 --> 00:04:11.640 align:start position:0% 5% well I really like the framework you 00:04:11.640 --> 00:04:13.830 align:start position:0% 5% well I really like the framework you put<00:04:11.879> around<00:04:12.159> these<00:04:12.599> different<00:04:13.280> types<00:04:13.560> or 00:04:13.830 --> 00:04:13.840 align:start position:0% put around these different types or 00:04:13.840 --> 00:04:15.550 align:start position:0% put around these different types or categories<00:04:14.239> of<00:04:14.400> differences<00:04:15.040> right<00:04:15.239> the<00:04:15.439> the 00:04:15.550 --> 00:04:15.560 align:start position:0% categories of differences right the the 00:04:15.560 --> 00:04:17.990 align:start position:0% categories of differences right the the scope<00:04:15.920> and<00:04:16.079> the<00:04:16.320> measurement<00:04:17.320> um<00:04:17.560> and<00:04:17.759> I<00:04:17.840> think 00:04:17.990 --> 00:04:18.000 align:start position:0% scope and the measurement um and I think 00:04:18.000 --> 00:04:21.229 align:start position:0% scope and the measurement um and I think the<00:04:18.160> weights<00:04:18.959> um<00:04:19.199> but<00:04:19.400> I<00:04:19.519> guess<00:04:19.799> from<00:04:20.199> a<00:04:20.479> pro 00:04:21.229 --> 00:04:21.239 align:start position:0% the weights um but I guess from a pro 00:04:21.239 --> 00:04:22.990 align:start position:0% the weights um but I guess from a pro practitioner's<00:04:22.040> perspective<00:04:22.520> when<00:04:22.680> I'm<00:04:22.880> kind 00:04:22.990 --> 00:04:23.000 align:start position:0% practitioner's perspective when I'm kind 00:04:23.000 --> 00:04:25.710 align:start position:0% practitioner's perspective when I'm kind of<00:04:23.160> looking<00:04:23.479> across<00:04:23.919> different<00:04:24.240> providers<00:04:25.199> um 00:04:25.710 --> 00:04:25.720 align:start position:0% of looking across different providers um 00:04:25.720 --> 00:04:28.510 align:start position:0% of looking across different providers um I<00:04:25.960> differentiate<00:04:26.759> between<00:04:27.759> uh<00:04:27.919> the<00:04:28.120> different 00:04:28.510 --> 00:04:28.520 align:start position:0% I differentiate between uh the different 00:04:28.520 --> 00:04:30.270 align:start position:0% I differentiate between uh the different historical<00:04:28.960> roots<00:04:29.320> and<00:04:29.600> and<00:04:29.800> the 00:04:30.270 --> 00:04:30.280 align:start position:0% historical roots and and the 00:04:30.280 --> 00:04:32.390 align:start position:0% historical roots and and the methodologies<00:04:31.280> um<00:04:31.400> and<00:04:31.600> which<00:04:31.759> ones<00:04:32.080> actually 00:04:32.390 --> 00:04:32.400 align:start position:0% methodologies um and which ones actually 00:04:32.400 --> 00:04:34.430 align:start position:0% methodologies um and which ones actually capture<00:04:32.759> financially<00:04:33.240> material<00:04:33.720> isue 00:04:34.430 --> 00:04:34.440 align:start position:0% capture financially material isue 00:04:34.440 --> 00:04:36.670 align:start position:0% capture financially material isue companies<00:04:34.919> versus<00:04:35.400> those<00:04:35.680> whose<00:04:36.280> historical 00:04:36.670 --> 00:04:36.680 align:start position:0% companies versus those whose historical 00:04:36.680 --> 00:04:38.629 align:start position:0% companies versus those whose historical roots<00:04:37.039> or<00:04:37.360> come<00:04:37.680> from<00:04:37.840> more<00:04:37.960> of<00:04:38.080> an<00:04:38.240> ethical 00:04:38.629 --> 00:04:38.639 align:start position:0% roots or come from more of an ethical 00:04:38.639 --> 00:04:40.990 align:start position:0% roots or come from more of an ethical investing<00:04:39.160> base<00:04:39.600> right<00:04:39.880> and<00:04:40.039> so<00:04:40.600> this<00:04:40.759> is 00:04:40.990 --> 00:04:41.000 align:start position:0% investing base right and so this is 00:04:41.000 --> 00:04:42.670 align:start position:0% investing base right and so this is actually<00:04:41.440> reflect<00:04:41.880> maybe<00:04:42.160> more<00:04:42.320> of<00:04:42.440> a 00:04:42.670 --> 00:04:42.680 align:start position:0% actually reflect maybe more of a 00:04:42.680 --> 00:04:44.350 align:start position:0% actually reflect maybe more of a philosophical<00:04:43.479> difference<00:04:43.919> I<00:04:43.960> mean<00:04:44.120> so<00:04:44.280> do 00:04:44.350 --> 00:04:44.360 align:start position:0% philosophical difference I mean so do 00:04:44.360 --> 00:04:45.749 align:start position:0% philosophical difference I mean so do you<00:04:44.520> think<00:04:44.680> that<00:04:44.880> this<00:04:45.120> philosophical 00:04:45.749 --> 00:04:45.759 align:start position:0% you think that this philosophical 00:04:45.759 --> 00:04:48.029 align:start position:0% you think that this philosophical difference<00:04:46.039> that<00:04:46.199> I'm<00:04:46.360> talking<00:04:46.680> about<00:04:47.440> um<00:04:47.840> is 00:04:48.029 --> 00:04:48.039 align:start position:0% difference that I'm talking about um is 00:04:48.039 --> 00:04:50.310 align:start position:0% difference that I'm talking about um is reflected<00:04:48.520> in<00:04:48.680> one<00:04:48.800> of<00:04:49.000> your<00:04:49.440> Concepts<00:04:49.960> or 00:04:50.310 --> 00:04:50.320 align:start position:0% reflected in one of your Concepts or 00:04:50.320 --> 00:04:53.270 align:start position:0% reflected in one of your Concepts or more<00:04:50.520> of<00:04:50.680> kind<00:04:50.800> of<00:04:50.880> a<00:04:51.039> meta<00:04:51.800> level<00:04:52.199> framing<00:04:52.960> no 00:04:53.270 --> 00:04:53.280 align:start position:0% more of kind of a meta level framing no 00:04:53.280 --> 00:04:54.950 align:start position:0% more of kind of a meta level framing no it<00:04:53.400> will<00:04:53.560> be<00:04:53.800> reflected<00:04:54.199> in<00:04:54.360> all<00:04:54.560> three<00:04:54.759> of 00:04:54.950 --> 00:04:54.960 align:start position:0% it will be reflected in all three of 00:04:54.960 --> 00:04:57.909 align:start position:0% it will be reflected in all three of them<00:04:55.680> uh<00:04:55.919> so<00:04:56.360> so<00:04:56.800> it<00:04:56.919> will<00:04:57.080> be<00:04:57.360> reflected<00:04:57.759> on 00:04:57.909 --> 00:04:57.919 align:start position:0% them uh so so it will be reflected on 00:04:57.919 --> 00:05:00.189 align:start position:0% them uh so so it will be reflected on the<00:04:58.039> measurement<00:04:58.639> for<00:04:58.800> sure<00:04:59.320> for<00:04:59.720> example<00:05:00.080> if 00:05:00.189 --> 00:05:00.199 align:start position:0% the measurement for sure for example if 00:05:00.199 --> 00:05:03.110 align:start position:0% the measurement for sure for example if you<00:05:00.360> want<00:05:00.520> to<00:05:01.120> understand<00:05:01.280> the<00:05:01.560> risk 00:05:03.110 --> 00:05:03.120 align:start position:0% you want to understand the risk 00:05:03.120 --> 00:05:05.629 align:start position:0% you want to understand the risk um<00:05:04.120> you<00:05:04.320> you<00:05:04.440> are<00:05:04.639> thinking<00:05:05.039> about<00:05:05.360> well<00:05:05.560> you 00:05:05.629 --> 00:05:05.639 align:start position:0% um you you are thinking about well you 00:05:05.639 --> 00:05:08.710 align:start position:0% um you you are thinking about well you know<00:05:05.840> how<00:05:06.199> for<00:05:06.360> example<00:05:06.680> C1<00:05:07.360> R<00:05:07.880> impacts<00:05:08.440> my 00:05:08.710 --> 00:05:08.720 align:start position:0% know how for example C1 R impacts my 00:05:08.720 --> 00:05:11.029 align:start position:0% know how for example C1 R impacts my business<00:05:09.360> so<00:05:09.600> that's<00:05:09.800> a<00:05:10.120> that's<00:05:10.280> a<00:05:10.520> risk 00:05:11.029 --> 00:05:11.039 align:start position:0% business so that's a that's a risk 00:05:11.039 --> 00:05:14.110 align:start position:0% business so that's a that's a risk approach<00:05:12.039> that's<00:05:12.320> very<00:05:12.520> different<00:05:12.919> from<00:05:13.919> uh 00:05:14.110 --> 00:05:14.120 align:start position:0% approach that's very different from uh 00:05:14.120 --> 00:05:15.670 align:start position:0% approach that's very different from uh the<00:05:14.240> moral<00:05:14.639> point<00:05:14.800> of<00:05:14.919> view<00:05:15.080> or<00:05:15.199> the<00:05:15.320> ethical 00:05:15.670 --> 00:05:15.680 align:start position:0% the moral point of view or the ethical 00:05:15.680 --> 00:05:16.990 align:start position:0% the moral point of view or the ethical point<00:05:15.840> of<00:05:15.960> view<00:05:16.199> about<00:05:16.400> you<00:05:16.520> know<00:05:16.720> how<00:05:16.840> much 00:05:16.990 --> 00:05:17.000 align:start position:0% point of view about you know how much 00:05:17.000 --> 00:05:19.070 align:start position:0% point of view about you know how much I'm<00:05:17.199> contributing<00:05:17.759> to<00:05:17.919> see<00:05:18.199> what<00:05:18.479> what<00:05:18.759> rise 00:05:19.070 --> 00:05:19.080 align:start position:0% I'm contributing to see what what rise 00:05:19.080 --> 00:05:20.990 align:start position:0% I'm contributing to see what what rise so<00:05:19.240> so<00:05:19.400> the<00:05:19.560> indicators<00:05:20.120> will<00:05:20.280> be<00:05:20.479> completely 00:05:20.990 --> 00:05:21.000 align:start position:0% so so the indicators will be completely 00:05:21.000 --> 00:05:22.430 align:start position:0% so so the indicators will be completely different<00:05:21.479> for<00:05:21.639> sure<00:05:22.000> they<00:05:22.080> will<00:05:22.240> be 00:05:22.430 --> 00:05:22.440 align:start position:0% different for sure they will be 00:05:22.440 --> 00:05:25.070 align:start position:0% different for sure they will be different<00:05:23.199> so<00:05:23.479> again<00:05:24.400> from<00:05:24.600> the<00:05:24.759> ethical 00:05:25.070 --> 00:05:25.080 align:start position:0% different so again from the ethical 00:05:25.080 --> 00:05:27.510 align:start position:0% different so again from the ethical point<00:05:25.280> of<00:05:25.400> view<00:05:26.160> you<00:05:26.319> know<00:05:26.800> I<00:05:26.919> think<00:05:27.160> that 00:05:27.510 --> 00:05:27.520 align:start position:0% point of view you know I think that 00:05:27.520 --> 00:05:29.029 align:start position:0% point of view you know I think that everything<00:05:27.840> that<00:05:27.960> is<00:05:28.120> related<00:05:28.440> to<00:05:28.560> a<00:05:28.720> crime 00:05:29.029 --> 00:05:29.039 align:start position:0% everything that is related to a crime 00:05:29.039 --> 00:05:31.309 align:start position:0% everything that is related to a crime should<00:05:29.240> be<00:05:29.400> there<00:05:29.800> the<00:05:29.919> index<00:05:30.400> so<00:05:30.759> you<00:05:31.000> lying 00:05:31.309 --> 00:05:31.319 align:start position:0% should be there the index so you lying 00:05:31.319 --> 00:05:33.670 align:start position:0% should be there the index so you lying about<00:05:31.560> your<00:05:31.720> marketing<00:05:32.319> products<00:05:32.680> that<00:05:32.800> are 00:05:33.670 --> 00:05:33.680 align:start position:0% about your marketing products that are 00:05:33.680 --> 00:05:37.590 align:start position:0% about your marketing products that are unsafe<00:05:34.680> uh<00:05:35.639> you<00:05:35.720> know<00:05:35.919> human<00:05:36.479> trafficking<00:05:37.479> uh 00:05:37.590 --> 00:05:37.600 align:start position:0% unsafe uh you know human trafficking uh 00:05:37.600 --> 00:05:39.189 align:start position:0% unsafe uh you know human trafficking uh you<00:05:37.720> know<00:05:37.840> money<00:05:38.120> laundering<00:05:38.800> all<00:05:39.000> these 00:05:39.189 --> 00:05:39.199 align:start position:0% you know money laundering all these 00:05:39.199 --> 00:05:41.029 align:start position:0% you know money laundering all these activities<00:05:39.639> are<00:05:39.919> illegal<00:05:40.440> activities<00:05:40.880> so 00:05:41.029 --> 00:05:41.039 align:start position:0% activities are illegal activities so 00:05:41.039 --> 00:05:42.710 align:start position:0% activities are illegal activities so from<00:05:41.240> the<00:05:41.400> ethical<00:05:41.759> point<00:05:41.919> of<00:05:42.160> if<00:05:42.280> I<00:05:42.400> want<00:05:42.560> to 00:05:42.710 --> 00:05:42.720 align:start position:0% from the ethical point of if I want to 00:05:42.720 --> 00:05:45.990 align:start position:0% from the ethical point of if I want to know<00:05:43.680> uh<00:05:43.919> is<00:05:44.400> MIT<00:05:44.919> doing<00:05:45.240> something<00:05:45.520> illegal 00:05:45.990 --> 00:05:46.000 align:start position:0% know uh is MIT doing something illegal 00:05:46.000 --> 00:05:47.350 align:start position:0% know uh is MIT doing something illegal then<00:05:46.120> I<00:05:46.199> want<00:05:46.360> to<00:05:46.479> measure<00:05:46.840> all<00:05:47.000> of<00:05:47.160> those 00:05:47.350 --> 00:05:47.360 align:start position:0% then I want to measure all of those 00:05:47.360 --> 00:05:49.710 align:start position:0% then I want to measure all of those issues<00:05:48.039> regardless<00:05:48.680> if<00:05:48.880> this<00:05:49.000> is<00:05:49.199> risky<00:05:49.560> or 00:05:49.710 --> 00:05:49.720 align:start position:0% issues regardless if this is risky or 00:05:49.720 --> 00:05:51.430 align:start position:0% issues regardless if this is risky or not<00:05:50.000> regardless<00:05:50.440> if<00:05:50.600> this<00:05:50.720> is<00:05:50.840> material<00:05:51.280> or 00:05:51.430 --> 00:05:51.440 align:start position:0% not regardless if this is material or 00:05:51.440 --> 00:05:54.150 align:start position:0% not regardless if this is material or not<00:05:51.960> but<00:05:52.120> when<00:05:52.280> I'm<00:05:52.479> analyzing<00:05:53.319> the<00:05:53.600> impact<00:05:54.000> of 00:05:54.150 --> 00:05:54.160 align:start position:0% not but when I'm analyzing the impact of 00:05:54.160 --> 00:05:57.670 align:start position:0% not but when I'm analyzing the impact of any<00:05:54.319> of<00:05:54.440> these<00:05:54.680> issues<00:05:55.120> into<00:05:56.120> MIT<00:05:57.000> as<00:05:57.120> a<00:05:57.319> risk 00:05:57.670 --> 00:05:57.680 align:start position:0% any of these issues into MIT as a risk 00:05:57.680 --> 00:05:59.390 align:start position:0% any of these issues into MIT as a risk profile<00:05:58.160> then<00:05:58.440> I<00:05:58.759> there<00:05:58.880> are<00:05:59.000> some<00:05:59.199> that<00:05:59.319> I 00:05:59.390 --> 00:05:59.400 align:start position:0% profile then I there are some that I 00:05:59.400 --> 00:06:01.670 align:start position:0% profile then I there are some that I will<00:05:59.680> just<00:05:59.919> this<00:06:00.240> regard<00:06:01.240> not<00:06:01.440> because 00:06:01.670 --> 00:06:01.680 align:start position:0% will just this regard not because 00:06:01.680 --> 00:06:03.390 align:start position:0% will just this regard not because they're<00:06:01.759> are<00:06:01.919> not<00:06:02.319> morally<00:06:02.759> important<00:06:03.240> it's 00:06:03.390 --> 00:06:03.400 align:start position:0% they're are not morally important it's 00:06:03.400 --> 00:06:04.950 align:start position:0% they're are not morally important it's just<00:06:03.600> because<00:06:03.800> they<00:06:03.880> are<00:06:04.080> just<00:06:04.360> financially 00:06:04.950 --> 00:06:04.960 align:start position:0% just because they are just financially 00:06:04.960 --> 00:06:07.870 align:start position:0% just because they are just financially not<00:06:05.479> uh<00:06:05.919> not<00:06:06.120> relevant<00:06:06.800> so<00:06:07.080> I<00:06:07.199> want<00:06:07.319> to<00:06:07.440> move<00:06:07.720> on 00:06:07.870 --> 00:06:07.880 align:start position:0% not uh not relevant so I want to move on 00:06:07.880 --> 00:06:11.150 align:start position:0% not uh not relevant so I want to move on to<00:06:08.639> talk<00:06:08.880> about<00:06:09.120> credit<00:06:09.599> ratings<00:06:10.599> so<00:06:10.960> this 00:06:11.150 --> 00:06:11.160 align:start position:0% to talk about credit ratings so this 00:06:11.160 --> 00:06:13.749 align:start position:0% to talk about credit ratings so this paper<00:06:12.120> um<00:06:12.400> have<00:06:12.560> found<00:06:12.759> a<00:06:12.919> correlation 00:06:13.749 --> 00:06:13.759 align:start position:0% paper um have found a correlation 00:06:13.759 --> 00:06:18.550 align:start position:0% paper um have found a correlation ranging<00:06:14.599> from<00:06:15.599> 38<00:06:16.160> to<00:06:17.160> 71<00:06:17.759> with<00:06:17.880> an<00:06:18.039> average<00:06:18.360> of 00:06:18.550 --> 00:06:18.560 align:start position:0% ranging from 38 to 71 with an average of 00:06:18.560 --> 00:06:22.350 align:start position:0% ranging from 38 to 71 with an average of about<00:06:18.919> 05<00:06:19.919> um<00:06:20.080> 0.54<00:06:20.840> I<00:06:20.960> think<00:06:21.520> so<00:06:21.960> you<00:06:22.080> know 00:06:22.350 --> 00:06:22.360 align:start position:0% about 05 um 0.54 I think so you know 00:06:22.360 --> 00:06:24.189 align:start position:0% about 05 um 0.54 I think so you know whether<00:06:22.800> you<00:06:22.919> think<00:06:23.160> that's<00:06:23.440> high<00:06:23.800> or<00:06:23.960> whether 00:06:24.189 --> 00:06:24.199 align:start position:0% whether you think that's high or whether 00:06:24.199 --> 00:06:25.790 align:start position:0% whether you think that's high or whether that's<00:06:24.479> low<00:06:24.960> kind<00:06:25.080> of<00:06:25.199> depends<00:06:25.520> on<00:06:25.639> the 00:06:25.790 --> 00:06:25.800 align:start position:0% that's low kind of depends on the 00:06:25.800 --> 00:06:27.309 align:start position:0% that's low kind of depends on the Benchmark<00:06:26.400> that<00:06:26.479> you<00:06:26.680> actually<00:06:26.880> compare<00:06:27.199> it 00:06:27.309 --> 00:06:27.319 align:start position:0% Benchmark that you actually compare it 00:06:27.319 --> 00:06:28.830 align:start position:0% Benchmark that you actually compare it to<00:06:27.520> and<00:06:27.639> of<00:06:27.759> course<00:06:27.960> the<00:06:28.080> Benchmark<00:06:28.520> that<00:06:28.680> you 00:06:28.830 --> 00:06:28.840 align:start position:0% to and of course the Benchmark that you 00:06:28.840 --> 00:06:30.670 align:start position:0% to and of course the Benchmark that you compared<00:06:29.199> it<00:06:29.280> to<00:06:29.400> in<00:06:29.720> paper<00:06:30.199> is<00:06:30.400> credit 00:06:30.670 --> 00:06:30.680 align:start position:0% compared it to in paper is credit 00:06:30.680 --> 00:06:31.950 align:start position:0% compared it to in paper is credit ratings<00:06:31.000> where<00:06:31.160> the<00:06:31.280> correlations<00:06:31.759> are 00:06:31.950 --> 00:06:31.960 align:start position:0% ratings where the correlations are 00:06:31.960 --> 00:06:35.189 align:start position:0% ratings where the correlations are something<00:06:32.759> more<00:06:33.080> like<00:06:33.360> 99%<00:06:34.360> right<00:06:34.560> so<00:06:35.039> what 00:06:35.189 --> 00:06:35.199 align:start position:0% something more like 99% right so what 00:06:35.199 --> 00:06:36.870 align:start position:0% something more like 99% right so what was<00:06:35.319> your<00:06:35.560> rationale<00:06:36.000> for<00:06:36.199> using<00:06:36.560> credit 00:06:36.870 --> 00:06:36.880 align:start position:0% was your rationale for using credit 00:06:36.880 --> 00:06:38.790 align:start position:0% was your rationale for using credit ratings<00:06:37.240> as<00:06:37.319> a<00:06:37.479> benchmark<00:06:38.160> so<00:06:38.360> so<00:06:38.560> let<00:06:38.639> me 00:06:38.790 --> 00:06:38.800 align:start position:0% ratings as a benchmark so so let me 00:06:38.800 --> 00:06:40.749 align:start position:0% ratings as a benchmark so so let me actually<00:06:39.120> tell<00:06:39.280> you<00:06:39.520> what<00:06:39.680> is<00:06:40.080> uh<00:06:40.360> what<00:06:40.479> I<00:06:40.599> do 00:06:40.749 --> 00:06:40.759 align:start position:0% actually tell you what is uh what I do 00:06:40.759 --> 00:06:43.790 align:start position:0% actually tell you what is uh what I do in<00:06:40.960> classes<00:06:41.759> I<00:06:41.960> I<00:06:42.160> ask<00:06:42.479> the<00:06:42.680> students<00:06:43.199> to<00:06:43.400> rate 00:06:43.790 --> 00:06:43.800 align:start position:0% in classes I I ask the students to rate 00:06:43.800 --> 00:06:45.990 align:start position:0% in classes I I ask the students to rate the<00:06:44.000> snacks<00:06:44.639> so<00:06:44.800> I<00:06:44.919> give<00:06:45.120> them<00:06:45.280> chocolate 00:06:45.990 --> 00:06:46.000 align:start position:0% the snacks so I give them chocolate 00:06:46.000 --> 00:06:48.790 align:start position:0% the snacks so I give them chocolate almonds<00:06:46.919> uh<00:06:47.120> you<00:06:47.240> know<00:06:47.440> potato<00:06:47.919> chips<00:06:48.560> uh<00:06:48.680> you 00:06:48.790 --> 00:06:48.800 align:start position:0% almonds uh you know potato chips uh you 00:06:48.800 --> 00:06:51.390 align:start position:0% almonds uh you know potato chips uh you know<00:06:49.360> goldfish<00:06:50.360> in<00:06:50.479> fact<00:06:50.680> here<00:06:50.840> I<00:06:51.000> have<00:06:51.120> it 00:06:51.390 --> 00:06:51.400 align:start position:0% know goldfish in fact here I have it 00:06:51.400 --> 00:06:53.230 align:start position:0% know goldfish in fact here I have it just<00:06:51.639> just<00:06:51.759> for<00:06:52.000> advertisement<00:06:52.919> this<00:06:53.039> is<00:06:53.120> what 00:06:53.230 --> 00:06:53.240 align:start position:0% just just for advertisement this is what 00:06:53.240 --> 00:06:55.150 align:start position:0% just just for advertisement this is what I<00:06:53.360> actually<00:06:53.680> bring<00:06:53.880> in<00:06:54.000> the 00:06:55.150 --> 00:06:55.160 align:start position:0% I actually bring in the 00:06:55.160 --> 00:06:58.550 align:start position:0% I actually bring in the class<00:06:56.160> so<00:06:56.680> so<00:06:56.879> I<00:06:57.039> tell<00:06:57.280> them<00:06:57.840> I<00:06:57.919> tell<00:06:58.160> them<00:06:58.400> I 00:06:58.550 --> 00:06:58.560 align:start position:0% class so so I tell them I tell them I 00:06:58.560 --> 00:07:01.150 align:start position:0% class so so I tell them I tell them I want<00:06:58.759> you<00:06:58.879> to<00:06:59.120> rate<00:06:59.840> uh<00:07:00.000> these<00:07:00.360> snacks<00:07:00.800> by<00:07:01.000> your 00:07:01.150 --> 00:07:01.160 align:start position:0% want you to rate uh these snacks by your 00:07:01.160 --> 00:07:03.110 align:start position:0% want you to rate uh these snacks by your preferences<00:07:01.759> which<00:07:01.879> one<00:07:02.039> you<00:07:02.160> like<00:07:02.360> the<00:07:02.520> most 00:07:03.110 --> 00:07:03.120 align:start position:0% preferences which one you like the most 00:07:03.120 --> 00:07:05.110 align:start position:0% preferences which one you like the most uh<00:07:03.240> and<00:07:03.400> so<00:07:03.560> on<00:07:03.800> and<00:07:03.960> then<00:07:04.199> also<00:07:04.440> I<00:07:04.560> want<00:07:04.720> you<00:07:04.840> to 00:07:05.110 --> 00:07:05.120 align:start position:0% uh and so on and then also I want you to 00:07:05.120 --> 00:07:07.110 align:start position:0% uh and so on and then also I want you to tell<00:07:05.319> me<00:07:05.560> different<00:07:05.960> categories<00:07:06.800> which<00:07:06.919> is 00:07:07.110 --> 00:07:07.120 align:start position:0% tell me different categories which is 00:07:07.120 --> 00:07:10.950 align:start position:0% tell me different categories which is you<00:07:07.240> know<00:07:07.680> yum<00:07:09.160> sweetness<00:07:10.160> I<00:07:10.360> like<00:07:10.599> it<00:07:10.800> I'm 00:07:10.950 --> 00:07:10.960 align:start position:0% you know yum sweetness I like it I'm 00:07:10.960 --> 00:07:12.589 align:start position:0% you know yum sweetness I like it I'm allergic<00:07:11.440> or<00:07:11.599> not<00:07:11.840> I<00:07:11.919> mean<00:07:12.160> things<00:07:12.360> like 00:07:12.589 --> 00:07:12.599 align:start position:0% allergic or not I mean things like 00:07:12.599 --> 00:07:14.869 align:start position:0% allergic or not I mean things like safety<00:07:13.000> and<00:07:13.160> so<00:07:13.319> on<00:07:14.039> and<00:07:14.280> and<00:07:14.400> I<00:07:14.520> tell<00:07:14.720> the 00:07:14.869 --> 00:07:14.879 align:start position:0% safety and so on and and I tell the 00:07:14.879 --> 00:07:17.270 align:start position:0% safety and so on and and I tell the students<00:07:15.240> to<00:07:15.560> rate<00:07:16.000> all<00:07:16.280> these<00:07:16.720> uh<00:07:16.879> different 00:07:17.270 --> 00:07:17.280 align:start position:0% students to rate all these uh different 00:07:17.280 --> 00:07:19.350 align:start position:0% students to rate all these uh different chocolates<00:07:18.199> and<00:07:18.319> let<00:07:18.440> me<00:07:18.599> tell<00:07:18.759> you<00:07:19.000> they<00:07:19.080> are 00:07:19.350 --> 00:07:19.360 align:start position:0% chocolates and let me tell you they are 00:07:19.360 --> 00:07:21.950 align:start position:0% chocolates and let me tell you they are less<00:07:19.800> correlated<00:07:20.800> than<00:07:20.960> the<00:07:21.120> ESG<00:07:21.599> rated 00:07:21.950 --> 00:07:21.960 align:start position:0% less correlated than the ESG rated 00:07:21.960 --> 00:07:24.830 align:start position:0% less correlated than the ESG rated agencies<00:07:22.479> so<00:07:22.639> there's<00:07:22.840> more<00:07:23.639> discrepancy<00:07:24.639> on 00:07:24.830 --> 00:07:24.840 align:start position:0% agencies so there's more discrepancy on 00:07:24.840 --> 00:07:27.469 align:start position:0% agencies so there's more discrepancy on the<00:07:25.000> evaluation<00:07:25.479> of<00:07:25.759> snacks<00:07:26.560> than<00:07:26.960> there<00:07:27.160> is 00:07:27.469 --> 00:07:27.479 align:start position:0% the evaluation of snacks than there is 00:07:27.479 --> 00:07:30.029 align:start position:0% the evaluation of snacks than there is on<00:07:27.680> the<00:07:27.879> ESG<00:07:28.319> rating<00:07:28.680> agencies<00:07:29.280> so<00:07:29.560> so<00:07:29.840> there's 00:07:30.029 --> 00:07:30.039 align:start position:0% on the ESG rating agencies so so there's 00:07:30.039 --> 00:07:31.790 align:start position:0% on the ESG rating agencies so so there's an<00:07:30.199> important<00:07:30.560> difference<00:07:30.919> here<00:07:31.479> is<00:07:31.599> that 00:07:31.790 --> 00:07:31.800 align:start position:0% an important difference here is that 00:07:31.800 --> 00:07:33.230 align:start position:0% an important difference here is that when<00:07:31.960> you<00:07:32.440> when<00:07:32.599> you<00:07:32.720> have<00:07:32.960> different 00:07:33.230 --> 00:07:33.240 align:start position:0% when you when you have different 00:07:33.240 --> 00:07:36.189 align:start position:0% when you when you have different preferences<00:07:33.840> on<00:07:34.199> snacks<00:07:34.800> We<00:07:34.919> Are<00:07:35.120> all<00:07:36.000> uh 00:07:36.189 --> 00:07:36.199 align:start position:0% preferences on snacks We Are all uh 00:07:36.199 --> 00:07:38.309 align:start position:0% preferences on snacks We Are all uh allowed<00:07:36.560> to<00:07:36.759> buy<00:07:37.039> different<00:07:37.319> snacks<00:07:37.960> so<00:07:38.240> I 00:07:38.309 --> 00:07:38.319 align:start position:0% allowed to buy different snacks so I 00:07:38.319 --> 00:07:40.589 align:start position:0% allowed to buy different snacks so I mean<00:07:38.560> so<00:07:39.000> I<00:07:39.160> I<00:07:39.360> I<00:07:39.479> I<00:07:39.599> don't<00:07:39.759> like<00:07:39.960> chocolate<00:07:40.440> in 00:07:40.589 --> 00:07:40.599 align:start position:0% mean so I I I I don't like chocolate in 00:07:40.599 --> 00:07:43.270 align:start position:0% mean so I I I I don't like chocolate in particular<00:07:41.560> but<00:07:41.720> you<00:07:41.800> might<00:07:42.039> eat<00:07:42.680> you<00:07:42.800> know 00:07:43.270 --> 00:07:43.280 align:start position:0% particular but you might eat you know 00:07:43.280 --> 00:07:44.990 align:start position:0% particular but you might eat you know you<00:07:43.400> might<00:07:43.599> like<00:07:43.800> sweet<00:07:44.120> snacks<00:07:44.560> and<00:07:44.800> you 00:07:44.990 --> 00:07:45.000 align:start position:0% you might like sweet snacks and you 00:07:45.000 --> 00:07:48.909 align:start position:0% you might like sweet snacks and you might<00:07:45.199> like<00:07:45.919> M&M's<00:07:46.919> so<00:07:47.720> see<00:07:48.120> in<00:07:48.199> a<00:07:48.319> market<00:07:48.680> like 00:07:48.909 --> 00:07:48.919 align:start position:0% might like M&M's so see in a market like 00:07:48.919 --> 00:07:51.510 align:start position:0% might like M&M's so see in a market like that<00:07:49.680> um<00:07:50.039> we<00:07:50.159> are<00:07:50.319> making<00:07:50.599> individual<00:07:51.080> choices 00:07:51.510 --> 00:07:51.520 align:start position:0% that um we are making individual choices 00:07:51.520 --> 00:07:53.149 align:start position:0% that um we are making individual choices so<00:07:51.720> different<00:07:52.000> preferences<00:07:52.479> will<00:07:52.639> be 00:07:53.149 --> 00:07:53.159 align:start position:0% so different preferences will be 00:07:53.159 --> 00:07:55.189 align:start position:0% so different preferences will be represented<00:07:53.720> in<00:07:53.879> different<00:07:54.199> choices<00:07:55.039> but 00:07:55.189 --> 00:07:55.199 align:start position:0% represented in different choices but 00:07:55.199 --> 00:07:56.589 align:start position:0% represented in different choices but when<00:07:55.360> we<00:07:55.479> are<00:07:55.599> trying<00:07:55.879> to<00:07:56.120> actually<00:07:56.440> for 00:07:56.589 --> 00:07:56.599 align:start position:0% when we are trying to actually for 00:07:56.599 --> 00:07:58.469 align:start position:0% when we are trying to actually for example<00:07:56.919> a<00:07:57.120> regulator<00:07:57.639> let<00:07:57.759> me<00:07:57.919> just<00:07:58.080> extend 00:07:58.469 --> 00:07:58.479 align:start position:0% example a regulator let me just extend 00:07:58.479 --> 00:08:00.189 align:start position:0% example a regulator let me just extend this<00:07:58.680> all<00:07:58.840> the<00:07:58.919> way<00:07:59.039> to<00:07:59.159> regul<00:07:59.720> I<00:07:59.800> know<00:07:59.960> that's 00:08:00.189 --> 00:08:00.199 align:start position:0% this all the way to regul I know that's 00:08:00.199 --> 00:08:02.189 align:start position:0% this all the way to regul I know that's not<00:08:00.360> your<00:08:00.560> intention<00:08:01.159> let's<00:08:01.360> assume<00:08:01.680> I<00:08:01.800> want<00:08:02.000> a 00:08:02.189 --> 00:08:02.199 align:start position:0% not your intention let's assume I want a 00:08:02.199 --> 00:08:04.830 align:start position:0% not your intention let's assume I want a regulator<00:08:03.159> uh<00:08:03.319> to<00:08:03.479> look<00:08:03.720> into<00:08:04.280> unethical 00:08:04.830 --> 00:08:04.840 align:start position:0% regulator uh to look into unethical 00:08:04.840 --> 00:08:06.990 align:start position:0% regulator uh to look into unethical behavior<00:08:05.199> of<00:08:05.319> firms<00:08:05.879> well<00:08:06.080> now<00:08:06.240> it's<00:08:06.400> a<00:08:06.639> single 00:08:06.990 --> 00:08:07.000 align:start position:0% behavior of firms well now it's a single 00:08:07.000 --> 00:08:08.550 align:start position:0% behavior of firms well now it's a single choice<00:08:07.240> for<00:08:07.400> the<00:08:07.560> whole<00:08:07.720> country<00:08:08.080> so<00:08:08.280> this<00:08:08.360> is 00:08:08.550 --> 00:08:08.560 align:start position:0% choice for the whole country so this is 00:08:08.560 --> 00:08:10.430 align:start position:0% choice for the whole country so this is almost<00:08:08.840> like<00:08:09.000> choosing<00:08:09.520> which<00:08:09.680> of<00:08:09.840> the<00:08:10.000> single 00:08:10.430 --> 00:08:10.440 align:start position:0% almost like choosing which of the single 00:08:10.440 --> 00:08:12.270 align:start position:0% almost like choosing which of the single snacks<00:08:10.840> we<00:08:11.000> want<00:08:11.159> to<00:08:11.400> actually<00:08:11.720> eat<00:08:11.919> for<00:08:12.159> all 00:08:12.270 --> 00:08:12.280 align:start position:0% snacks we want to actually eat for all 00:08:12.280 --> 00:08:16.070 align:start position:0% snacks we want to actually eat for all of<00:08:12.440> us<00:08:13.360> the<00:08:14.000> ESG<00:08:15.000> is<00:08:15.240> kind<00:08:15.400> of<00:08:15.599> in<00:08:15.680> the<00:08:15.800> middle 00:08:16.070 --> 00:08:16.080 align:start position:0% of us the ESG is kind of in the middle 00:08:16.080 --> 00:08:18.510 align:start position:0% of us the ESG is kind of in the middle of<00:08:16.199> this<00:08:16.400> two<00:08:17.159> okay<00:08:17.639> the<00:08:17.800> the<00:08:17.960> investors<00:08:18.360> are 00:08:18.510 --> 00:08:18.520 align:start position:0% of this two okay the the investors are 00:08:18.520 --> 00:08:21.110 align:start position:0% of this two okay the the investors are trying<00:08:18.759> to<00:08:18.919> find<00:08:19.440> some<00:08:20.000> guidance<00:08:20.520> about<00:08:20.960> how 00:08:21.110 --> 00:08:21.120 align:start position:0% trying to find some guidance about how 00:08:21.120 --> 00:08:23.469 align:start position:0% trying to find some guidance about how do<00:08:21.319> I<00:08:21.479> make<00:08:21.639> a<00:08:21.800> better<00:08:22.120> decision<00:08:23.120> and<00:08:23.280> that 00:08:23.469 --> 00:08:23.479 align:start position:0% do I make a better decision and that 00:08:23.479 --> 00:08:25.390 align:start position:0% do I make a better decision and that tends<00:08:23.680> to<00:08:23.800> be<00:08:23.960> kind<00:08:24.080> of<00:08:24.280> collective<00:08:24.800> values 00:08:25.390 --> 00:08:25.400 align:start position:0% tends to be kind of collective values 00:08:25.400 --> 00:08:26.950 align:start position:0% tends to be kind of collective values without<00:08:25.720> them<00:08:25.919> actually<00:08:26.199> knowing<00:08:26.560> exactly 00:08:26.950 --> 00:08:26.960 align:start position:0% without them actually knowing exactly 00:08:26.960 --> 00:08:28.469 align:start position:0% without them actually knowing exactly what<00:08:27.080> their<00:08:27.240> values<00:08:27.560> are<00:08:27.879> so<00:08:28.039> it's<00:08:28.240> it's<00:08:28.360> kind 00:08:28.469 --> 00:08:28.479 align:start position:0% what their values are so it's it's kind 00:08:28.479 --> 00:08:30.830 align:start position:0% what their values are so it's it's kind of<00:08:28.639> worse<00:08:28.879> than<00:08:29.000> a<00:08:29.120> regul<00:08:29.720> in<00:08:29.840> that 00:08:30.830 --> 00:08:30.840 align:start position:0% of worse than a regul in that 00:08:30.840 --> 00:08:32.990 align:start position:0% of worse than a regul in that sense<00:08:31.840> but<00:08:31.960> it's<00:08:32.120> kind<00:08:32.240> of<00:08:32.399> collective<00:08:32.880> we 00:08:32.990 --> 00:08:33.000 align:start position:0% sense but it's kind of collective we 00:08:33.000 --> 00:08:35.110 align:start position:0% sense but it's kind of collective we want<00:08:33.159> to<00:08:33.320> know<00:08:33.519> who<00:08:33.640> is<00:08:33.760> a<00:08:34.000> brown<00:08:34.320> firm<00:08:34.880> and<00:08:35.000> you 00:08:35.110 --> 00:08:35.120 align:start position:0% want to know who is a brown firm and you 00:08:35.120 --> 00:08:37.750 align:start position:0% want to know who is a brown firm and you know<00:08:35.279> and<00:08:35.479> then<00:08:35.800> then<00:08:36.360> which<00:08:36.599> firms<00:08:37.000> will<00:08:37.200> be 00:08:37.750 --> 00:08:37.760 align:start position:0% know and then then which firms will be 00:08:37.760 --> 00:08:40.350 align:start position:0% know and then then which firms will be are<00:08:37.959> subject<00:08:38.320> to<00:08:38.719> transition<00:08:39.279> risk<00:08:40.039> we<00:08:40.200> want 00:08:40.350 --> 00:08:40.360 align:start position:0% are subject to transition risk we want 00:08:40.360 --> 00:08:42.110 align:start position:0% are subject to transition risk we want to<00:08:40.560> equate<00:08:40.959> this<00:08:41.159> across<00:08:41.680> different 00:08:42.110 --> 00:08:42.120 align:start position:0% to equate this across different 00:08:42.120 --> 00:08:45.310 align:start position:0% to equate this across different investors<00:08:43.120> in<00:08:43.279> some<00:08:43.680> sense<00:08:44.680> um<00:08:45.000> and<00:08:45.120> that 00:08:45.310 --> 00:08:45.320 align:start position:0% investors in some sense um and that 00:08:45.320 --> 00:08:47.110 align:start position:0% investors in some sense um and that complicates<00:08:45.839> the<00:08:45.959> analysis<00:08:46.680> well<00:08:46.839> I'll<00:08:46.959> tell 00:08:47.110 --> 00:08:47.120 align:start position:0% complicates the analysis well I'll tell 00:08:47.120 --> 00:08:48.670 align:start position:0% complicates the analysis well I'll tell you<00:08:47.320> I<00:08:47.399> get<00:08:47.600> two<00:08:47.800> types<00:08:48.000> of<00:08:48.160> questions<00:08:48.440> about 00:08:48.670 --> 00:08:48.680 align:start position:0% you I get two types of questions about 00:08:48.680 --> 00:08:50.990 align:start position:0% you I get two types of questions about credit<00:08:48.959> ratings<00:08:49.480> and<00:08:49.680> ESG<00:08:50.440> with<00:08:50.560> regards<00:08:50.880> to 00:08:50.990 --> 00:08:51.000 align:start position:0% credit ratings and ESG with regards to 00:08:51.000 --> 00:08:52.590 align:start position:0% credit ratings and ESG with regards to your<00:08:51.120> paper<00:08:51.519> so<00:08:51.680> one<00:08:51.880> set<00:08:52.080> the<00:08:52.240> questions 00:08:52.590 --> 00:08:52.600 align:start position:0% your paper so one set the questions 00:08:52.600 --> 00:08:54.870 align:start position:0% your paper so one set the questions actually<00:08:52.839> come<00:08:53.120> from<00:08:53.839> nonusers<00:08:54.600> of<00:08:54.760> the 00:08:54.870 --> 00:08:54.880 align:start position:0% actually come from nonusers of the 00:08:54.880 --> 00:08:56.310 align:start position:0% actually come from nonusers of the rating<00:08:55.320> so<00:08:55.760> you<00:08:55.880> know<00:08:56.000> if<00:08:56.080> you're<00:08:56.200> a 00:08:56.310 --> 00:08:56.320 align:start position:0% rating so you know if you're a 00:08:56.320 --> 00:08:57.990 align:start position:0% rating so you know if you're a journalist<00:08:56.800> you're<00:08:56.959> a<00:08:57.120> policy<00:08:57.440> maker<00:08:57.800> people 00:08:57.990 --> 00:08:58.000 align:start position:0% journalist you're a policy maker people 00:08:58.000 --> 00:08:59.430 align:start position:0% journalist you're a policy maker people who<00:08:58.120> aren't<00:08:58.440> actually<00:08:58.720> subscribing<00:08:59.200> to<00:08:59.320> the 00:08:59.430 --> 00:08:59.440 align:start position:0% who aren't actually subscribing to the 00:08:59.440 --> 00:09:01.110 align:start position:0% who aren't actually subscribing to the the<00:08:59.519> full<00:08:59.760> ratings<00:09:00.079> and<00:09:00.279> all<00:09:00.399> the<00:09:00.519> underlying 00:09:01.110 --> 00:09:01.120 align:start position:0% the full ratings and all the underlying 00:09:01.120 --> 00:09:02.590 align:start position:0% the full ratings and all the underlying data<00:09:01.519> and<00:09:01.680> they<00:09:01.800> don't<00:09:02.000> use<00:09:02.200> them<00:09:02.360> in<00:09:02.440> their 00:09:02.590 --> 00:09:02.600 align:start position:0% data and they don't use them in their 00:09:02.600 --> 00:09:04.590 align:start position:0% data and they don't use them in their day-to-day<00:09:03.040> work<00:09:03.240> of<00:09:03.399> allocating<00:09:04.000> Capital 00:09:04.590 --> 00:09:04.600 align:start position:0% day-to-day work of allocating Capital 00:09:04.600 --> 00:09:06.310 align:start position:0% day-to-day work of allocating Capital because<00:09:04.800> of<00:09:04.920> this<00:09:05.079> comparison<00:09:05.519> in<00:09:05.640> your<00:09:05.800> paper 00:09:06.310 --> 00:09:06.320 align:start position:0% because of this comparison in your paper 00:09:06.320 --> 00:09:08.590 align:start position:0% because of this comparison in your paper they<00:09:06.519> assume<00:09:06.880> that<00:09:07.040> ESG<00:09:07.480> rating<00:09:08.000> should<00:09:08.320> be 00:09:08.590 --> 00:09:08.600 align:start position:0% they assume that ESG rating should be 00:09:08.600 --> 00:09:10.910 align:start position:0% they assume that ESG rating should be like<00:09:09.000> credit<00:09:09.320> rating<00:09:09.760> so<00:09:10.200> they<00:09:10.399> ask<00:09:10.640> about 00:09:10.910 --> 00:09:10.920 align:start position:0% like credit rating so they ask about 00:09:10.920 --> 00:09:13.509 align:start position:0% like credit rating so they ask about whether<00:09:11.480> ratings<00:09:12.000> diverge<00:09:13.000> um<00:09:13.160> because 00:09:13.509 --> 00:09:13.519 align:start position:0% whether ratings diverge um because 00:09:13.519 --> 00:09:16.190 align:start position:0% whether ratings diverge um because companies<00:09:14.000> pay<00:09:14.720> for<00:09:14.959> higher<00:09:15.240> ratings<00:09:16.079> and 00:09:16.190 --> 00:09:16.200 align:start position:0% companies pay for higher ratings and 00:09:16.200 --> 00:09:17.870 align:start position:0% companies pay for higher ratings and then<00:09:16.360> they<00:09:16.480> are<00:09:16.680> surprised<00:09:17.160> when<00:09:17.320> we<00:09:17.480> say<00:09:17.760> you 00:09:17.870 --> 00:09:17.880 align:start position:0% then they are surprised when we say you 00:09:17.880 --> 00:09:19.430 align:start position:0% then they are surprised when we say you know<00:09:18.000> ESU<00:09:18.440> ratings<00:09:18.680> are<00:09:18.839> actually<00:09:19.079> paid<00:09:19.279> by 00:09:19.430 --> 00:09:19.440 align:start position:0% know ESU ratings are actually paid by 00:09:19.440 --> 00:09:21.710 align:start position:0% know ESU ratings are actually paid by investors<00:09:19.920> and<00:09:20.079> not<00:09:20.279> companies<00:09:21.279> um<00:09:21.440> something 00:09:21.710 --> 00:09:21.720 align:start position:0% investors and not companies um something 00:09:21.720 --> 00:09:23.110 align:start position:0% investors and not companies um something you<00:09:21.839> pointed<00:09:22.120> out<00:09:22.240> in<00:09:22.320> your<00:09:22.440> paper<00:09:22.880> the<00:09:22.959> other 00:09:23.110 --> 00:09:23.120 align:start position:0% you pointed out in your paper the other 00:09:23.120 --> 00:09:24.470 align:start position:0% you pointed out in your paper the other thing<00:09:23.240> that<00:09:23.399> you<00:09:23.519> pointed<00:09:23.760> out<00:09:23.880> in<00:09:23.959> your<00:09:24.120> paper 00:09:24.470 --> 00:09:24.480 align:start position:0% thing that you pointed out in your paper 00:09:24.480 --> 00:09:26.030 align:start position:0% thing that you pointed out in your paper is<00:09:24.680> that<00:09:24.920> while<00:09:25.120> credit<00:09:25.440> ratings<00:09:25.839> is 00:09:26.030 --> 00:09:26.040 align:start position:0% is that while credit ratings is 00:09:26.040 --> 00:09:28.190 align:start position:0% is that while credit ratings is measuring<00:09:26.680> one<00:09:26.959> thing<00:09:27.200> so<00:09:27.399> this<00:09:27.680> probability 00:09:28.190 --> 00:09:28.200 align:start position:0% measuring one thing so this probability 00:09:28.200 --> 00:09:30.269 align:start position:0% measuring one thing so this probability of<00:09:28.360> default<00:09:29.079> um<00:09:29.360> issue<00:09:29.600> ratings<00:09:29.880> aim<00:09:30.120> to 00:09:30.269 --> 00:09:30.279 align:start position:0% of default um issue ratings aim to 00:09:30.279 --> 00:09:32.110 align:start position:0% of default um issue ratings aim to capture<00:09:30.640> kind<00:09:30.760> of<00:09:30.839> multiple<00:09:31.320> dimensions<00:09:31.920> and 00:09:32.110 --> 00:09:32.120 align:start position:0% capture kind of multiple dimensions and 00:09:32.120 --> 00:09:33.710 align:start position:0% capture kind of multiple dimensions and those<00:09:32.320> Dimensions<00:09:32.760> can<00:09:32.920> be<00:09:33.160> quite<00:09:33.399> different 00:09:33.710 --> 00:09:33.720 align:start position:0% those Dimensions can be quite different 00:09:33.720 --> 00:09:35.389 align:start position:0% those Dimensions can be quite different between<00:09:34.079> Industries<00:09:34.720> so<00:09:34.880> it's<00:09:35.040> always<00:09:35.240> hard 00:09:35.389 --> 00:09:35.399 align:start position:0% between Industries so it's always hard 00:09:35.399 --> 00:09:36.949 align:start position:0% between Industries so it's always hard to<00:09:35.560> answer<00:09:35.920> this<00:09:36.120> question<00:09:36.440> you<00:09:36.560> know<00:09:36.720> of 00:09:36.949 --> 00:09:36.959 align:start position:0% to answer this question you know of 00:09:36.959 --> 00:09:39.230 align:start position:0% to answer this question you know of whether<00:09:37.360> e<00:09:37.600> or<00:09:37.760> s<00:09:38.000> or<00:09:38.160> G<00:09:38.519> factors<00:09:39.000> you<00:09:39.079> know 00:09:39.230 --> 00:09:39.240 align:start position:0% whether e or s or G factors you know 00:09:39.240 --> 00:09:40.790 align:start position:0% whether e or s or G factors you know just<00:09:39.360> like<00:09:39.519> your<00:09:39.680> yumminess<00:09:40.200> factors<00:09:40.600> the 00:09:40.790 --> 00:09:40.800 align:start position:0% just like your yumminess factors the 00:09:40.800 --> 00:09:42.630 align:start position:0% just like your yumminess factors the most<00:09:41.079> important<00:09:41.600> because<00:09:41.880> it<00:09:42.079> it<00:09:42.200> also<00:09:42.440> sort 00:09:42.630 --> 00:09:42.640 align:start position:0% most important because it it also sort 00:09:42.640 --> 00:09:45.110 align:start position:0% most important because it it also sort of<00:09:42.800> depends<00:09:43.760> a<00:09:43.920> different<00:09:44.200> set<00:09:44.399> of<00:09:44.560> questions 00:09:45.110 --> 00:09:45.120 align:start position:0% of depends a different set of questions 00:09:45.120 --> 00:09:47.630 align:start position:0% of depends a different set of questions though<00:09:45.519> I<00:09:45.680> get<00:09:46.040> is<00:09:46.200> from<00:09:46.399> users<00:09:46.720> of<00:09:46.920> rating<00:09:47.320> so 00:09:47.630 --> 00:09:47.640 align:start position:0% though I get is from users of rating so 00:09:47.640 --> 00:09:49.630 align:start position:0% though I get is from users of rating so investors<00:09:48.120> who<00:09:48.240> are<00:09:48.519> actually<00:09:48.920> using<00:09:49.399> this 00:09:49.630 --> 00:09:49.640 align:start position:0% investors who are actually using this 00:09:49.640 --> 00:09:51.990 align:start position:0% investors who are actually using this day-to-<00:09:50.079> day<00:09:50.680> and<00:09:50.800> the<00:09:50.959> question<00:09:51.279> that<00:09:51.519> I<00:09:51.720> get 00:09:51.990 --> 00:09:52.000 align:start position:0% day-to- day and the question that I get 00:09:52.000 --> 00:09:53.949 align:start position:0% day-to- day and the question that I get is<00:09:52.160> one<00:09:52.360> I'm<00:09:52.440> going<00:09:52.560> to<00:09:52.720> ask<00:09:52.920> you<00:09:53.360> are<00:09:53.519> ESG 00:09:53.949 --> 00:09:53.959 align:start position:0% is one I'm going to ask you are ESG 00:09:53.959 --> 00:09:55.949 align:start position:0% is one I'm going to ask you are ESG ratings<00:09:54.399> more<00:09:54.680> like<00:09:54.959> credit<00:09:55.240> ratings<00:09:55.640> or<00:09:55.800> are 00:09:55.949 --> 00:09:55.959 align:start position:0% ratings more like credit ratings or are 00:09:55.959 --> 00:09:58.269 align:start position:0% ratings more like credit ratings or are they<00:09:56.160> more<00:09:56.480> like<00:09:56.680> selli<00:09:57.399> ratings<00:09:58.079> it's 00:09:58.269 --> 00:09:58.279 align:start position:0% they more like selli ratings it's 00:09:58.279 --> 00:09:59.790 align:start position:0% they more like selli ratings it's interesting<00:09:58.720> I<00:09:58.880> actually<00:09:59.079> think<00:09:59.600> this 00:09:59.790 --> 00:09:59.800 align:start position:0% interesting I actually think this 00:09:59.800 --> 00:10:01.790 align:start position:0% interesting I actually think this depends<00:10:00.120> on<00:10:00.279> the<00:10:00.399> rating<00:10:00.800> agency<00:10:01.200> some<00:10:01.480> rating 00:10:01.790 --> 00:10:01.800 align:start position:0% depends on the rating agency some rating 00:10:01.800 --> 00:10:04.190 align:start position:0% depends on the rating agency some rating agencies<00:10:02.160> will<00:10:02.320> mean<00:10:02.640> more<00:10:03.640> they<00:10:03.760> would<00:10:03.920> like 00:10:04.190 --> 00:10:04.200 align:start position:0% agencies will mean more they would like 00:10:04.200 --> 00:10:06.710 align:start position:0% agencies will mean more they would like more<00:10:04.560> to<00:10:04.720> be<00:10:05.079> like<00:10:05.440> a<00:10:05.600> credit<00:10:05.880> rating<00:10:06.240> agency 00:10:06.710 --> 00:10:06.720 align:start position:0% more to be like a credit rating agency 00:10:06.720 --> 00:10:08.910 align:start position:0% more to be like a credit rating agency in<00:10:06.839> the<00:10:06.959> sense<00:10:07.200> that<00:10:07.600> um<00:10:08.079> they<00:10:08.240> want<00:10:08.480> to 00:10:08.910 --> 00:10:08.920 align:start position:0% in the sense that um they want to 00:10:08.920 --> 00:10:11.990 align:start position:0% in the sense that um they want to measure<00:10:09.920> uh<00:10:10.519> the<00:10:10.720> likelihood<00:10:11.279> that<00:10:11.480> you<00:10:11.600> will 00:10:11.990 --> 00:10:12.000 align:start position:0% measure uh the likelihood that you will 00:10:12.000 --> 00:10:15.870 align:start position:0% measure uh the likelihood that you will make<00:10:12.640> uh<00:10:12.959> something<00:10:13.640> um<00:10:14.160> you<00:10:14.320> know<00:10:14.720> immoral<00:10:15.480> or 00:10:15.870 --> 00:10:15.880 align:start position:0% make uh something um you know immoral or 00:10:15.880 --> 00:10:18.829 align:start position:0% make uh something um you know immoral or or<00:10:16.040> illegal<00:10:16.920> so<00:10:17.519> from<00:10:17.800> that<00:10:18.040> perspective 00:10:18.829 --> 00:10:18.839 align:start position:0% or illegal so from that perspective 00:10:18.839 --> 00:10:20.430 align:start position:0% or illegal so from that perspective they're<00:10:19.079> trying<00:10:19.320> to<00:10:19.480> see<00:10:19.839> are<00:10:20.000> you<00:10:20.120> going<00:10:20.320> to 00:10:20.430 --> 00:10:20.440 align:start position:0% they're trying to see are you going to 00:10:20.440 --> 00:10:22.430 align:start position:0% they're trying to see are you going to be<00:10:20.560> on<00:10:20.720> the<00:10:20.880> newspapers<00:10:21.800> because<00:10:22.079> you<00:10:22.240> did 00:10:22.430 --> 00:10:22.440 align:start position:0% be on the newspapers because you did 00:10:22.440 --> 00:10:25.190 align:start position:0% be on the newspapers because you did something<00:10:22.800> illegal<00:10:23.720> so<00:10:23.959> so<00:10:24.240> that<00:10:24.399> one<00:10:24.640> sounds 00:10:25.190 --> 00:10:25.200 align:start position:0% something illegal so so that one sounds 00:10:25.200 --> 00:10:28.350 align:start position:0% something illegal so so that one sounds very<00:10:25.440> much<00:10:25.760> like<00:10:26.000> a<00:10:26.760> a<00:10:26.959> credit<00:10:27.279> rated<00:10:27.720> score<00:10:28.079> no 00:10:28.350 --> 00:10:28.360 align:start position:0% very much like a a credit rated score no 00:10:28.360 --> 00:10:30.750 align:start position:0% very much like a a credit rated score no like<00:10:28.880> so<00:10:29.079> you<00:10:29.200> know<00:10:29.480> you<00:10:29.600> did<00:10:29.800> something<00:10:30.160> wrong 00:10:30.750 --> 00:10:30.760 align:start position:0% like so you know you did something wrong 00:10:30.760 --> 00:10:32.990 align:start position:0% like so you know you did something wrong if<00:10:30.920> I'm<00:10:31.079> airm<00:10:31.560> I<00:10:31.640> can<00:10:31.800> do<00:10:32.000> many<00:10:32.360> dimensions 00:10:32.990 --> 00:10:33.000 align:start position:0% if I'm airm I can do many dimensions 00:10:33.000 --> 00:10:35.990 align:start position:0% if I'm airm I can do many dimensions wrong<00:10:33.519> so<00:10:34.000> default<00:10:34.399> is<00:10:34.519> only<00:10:34.760> one<00:10:35.120> I<00:10:35.320> default 00:10:35.990 --> 00:10:36.000 align:start position:0% wrong so default is only one I default 00:10:36.000 --> 00:10:37.670 align:start position:0% wrong so default is only one I default no<00:10:36.240> so<00:10:36.399> the<00:10:36.560> credit<00:10:36.800> rating<00:10:37.120> is<00:10:37.399> it's<00:10:37.519> just 00:10:37.670 --> 00:10:37.680 align:start position:0% no so the credit rating is it's just 00:10:37.680 --> 00:10:38.470 align:start position:0% no so the credit rating is it's just super 00:10:38.470 --> 00:10:38.480 align:start position:0% super 00:10:38.480 --> 00:10:40.750 align:start position:0% super simple<00:10:39.480> I<00:10:39.680> I<00:10:39.839> have<00:10:39.959> to<00:10:40.160> measure<00:10:40.560> your 00:10:40.750 --> 00:10:40.760 align:start position:0% simple I I have to measure your 00:10:40.760 --> 00:10:42.590 align:start position:0% simple I I have to measure your willingness<00:10:41.240> to<00:10:41.440> pay<00:10:41.680> and<00:10:41.839> your<00:10:42.040> ability<00:10:42.399> to 00:10:42.590 --> 00:10:42.600 align:start position:0% willingness to pay and your ability to 00:10:42.600 --> 00:10:44.470 align:start position:0% willingness to pay and your ability to pay<00:10:43.040> but<00:10:43.240> it<00:10:43.360> still<00:10:43.560> is<00:10:43.720> extremely<00:10:44.120> hard<00:10:44.399> I'm 00:10:44.470 --> 00:10:44.480 align:start position:0% pay but it still is extremely hard I'm 00:10:44.480 --> 00:10:46.870 align:start position:0% pay but it still is extremely hard I'm not<00:10:44.639> saying<00:10:44.880> that<00:10:45.040> it's<00:10:45.440> is<00:10:45.639> is<00:10:45.800> Trivial<00:10:46.760> but 00:10:46.870 --> 00:10:46.880 align:start position:0% not saying that it's is is Trivial but 00:10:46.880 --> 00:10:49.509 align:start position:0% not saying that it's is is Trivial but it's<00:10:47.040> only<00:10:47.320> one<00:10:47.600> issue<00:10:48.079> there<00:10:48.360> one<00:10:48.600> issue<00:10:49.040> here 00:10:49.509 --> 00:10:49.519 align:start position:0% it's only one issue there one issue here 00:10:49.519 --> 00:10:52.470 align:start position:0% it's only one issue there one issue here you<00:10:49.760> have<00:10:50.720> hundreds<00:10:51.519> hundreds<00:10:51.959> of<00:10:52.160> different 00:10:52.470 --> 00:10:52.480 align:start position:0% you have hundreds hundreds of different 00:10:52.480 --> 00:10:54.590 align:start position:0% you have hundreds hundreds of different issues<00:10:52.920> that<00:10:53.079> you<00:10:53.480> you<00:10:54.079> where<00:10:54.279> where<00:10:54.440> the 00:10:54.590 --> 00:10:54.600 align:start position:0% issues that you you where where the 00:10:54.600 --> 00:10:56.990 align:start position:0% issues that you you where where the unethical<00:10:55.120> Behavior<00:10:55.480> the<00:10:55.560> from<00:10:55.880> can<00:10:56.000> be<00:10:56.240> shown 00:10:56.990 --> 00:10:57.000 align:start position:0% unethical Behavior the from can be shown 00:10:57.000 --> 00:11:00.750 align:start position:0% unethical Behavior the from can be shown so<00:10:57.320> again<00:10:58.320> the<00:10:58.600> proliferation<00:10:59.639> of<00:10:59.880> M<00:11:00.279> behavior 00:11:00.750 --> 00:11:00.760 align:start position:0% so again the proliferation of M behavior 00:11:00.760 --> 00:11:02.870 align:start position:0% so again the proliferation of M behavior that<00:11:00.920> you<00:11:01.160> could<00:11:01.399> in<00:11:01.639> principle<00:11:02.160> have<00:11:02.440> is<00:11:02.600> just 00:11:02.870 --> 00:11:02.880 align:start position:0% that you could in principle have is just 00:11:02.880 --> 00:11:05.509 align:start position:0% that you could in principle have is just tremendously<00:11:03.680> large<00:11:04.200> and<00:11:04.440> that<00:11:04.639> so<00:11:05.079> so<00:11:05.279> trying 00:11:05.509 --> 00:11:05.519 align:start position:0% tremendously large and that so so trying 00:11:05.519 --> 00:11:07.509 align:start position:0% tremendously large and that so so trying to<00:11:05.639> make<00:11:05.800> an<00:11:05.959> assessment<00:11:06.399> of<00:11:06.639> that<00:11:06.839> is<00:11:07.200> is<00:11:07.360> an 00:11:07.509 --> 00:11:07.519 align:start position:0% to make an assessment of that is is an 00:11:07.519 --> 00:11:09.629 align:start position:0% to make an assessment of that is is an order<00:11:07.760> of<00:11:07.880> magnitude<00:11:08.320> harder<00:11:09.079> but<00:11:09.240> that's<00:11:09.440> why 00:11:09.629 --> 00:11:09.639 align:start position:0% order of magnitude harder but that's why 00:11:09.639 --> 00:11:12.750 align:start position:0% order of magnitude harder but that's why I<00:11:09.720> think<00:11:09.959> ESG<00:11:10.920> rating<00:11:11.920> and<00:11:12.079> data<00:11:12.360> providers 00:11:12.750 --> 00:11:12.760 align:start position:0% I think ESG rating and data providers 00:11:12.760 --> 00:11:15.509 align:start position:0% I think ESG rating and data providers are<00:11:12.920> so<00:11:13.160> important<00:11:13.800> if<00:11:13.920> I<00:11:14.120> ask<00:11:14.360> any 00:11:15.509 --> 00:11:15.519 align:start position:0% are so important if I ask any 00:11:15.519 --> 00:11:18.069 align:start position:0% are so important if I ask any individual<00:11:16.519> to<00:11:16.680> for<00:11:16.920> them<00:11:17.079> to<00:11:17.360> rank<00:11:17.880> these 00:11:18.069 --> 00:11:18.079 align:start position:0% individual to for them to rank these 00:11:18.079 --> 00:11:19.629 align:start position:0% individual to for them to rank these issues<00:11:18.440> just<00:11:18.560> to<00:11:18.720> rank<00:11:19.040> them<00:11:19.160> forget<00:11:19.440> about 00:11:19.629 --> 00:11:19.639 align:start position:0% issues just to rank them forget about 00:11:19.639 --> 00:11:21.350 align:start position:0% issues just to rank them forget about putting<00:11:19.920> weights<00:11:20.639> which<00:11:20.800> one<00:11:21.000> is<00:11:21.120> more 00:11:21.350 --> 00:11:21.360 align:start position:0% putting weights which one is more 00:11:21.360 --> 00:11:24.910 align:start position:0% putting weights which one is more important<00:11:22.360> poverty<00:11:23.320> environment<00:11:24.320> civil 00:11:24.910 --> 00:11:24.920 align:start position:0% important poverty environment civil 00:11:24.920 --> 00:11:28.150 align:start position:0% important poverty environment civil rights<00:11:25.920> uh<00:11:26.240> a<00:11:26.440> product<00:11:26.880> safety<00:11:27.880> most 00:11:28.150 --> 00:11:28.160 align:start position:0% rights uh a product safety most 00:11:28.160 --> 00:11:30.030 align:start position:0% rights uh a product safety most individuals<00:11:28.600> will<00:11:28.760> not<00:11:28.880> be<00:11:28.959> able<00:11:29.120> to<00:11:29.440> rank<00:11:29.880> but 00:11:30.030 --> 00:11:30.040 align:start position:0% individuals will not be able to rank but 00:11:30.040 --> 00:11:31.710 align:start position:0% individuals will not be able to rank but but<00:11:30.120> if<00:11:30.240> I<00:11:30.399> give<00:11:30.519> him<00:11:30.680> four<00:11:31.000> they<00:11:31.120> might<00:11:31.320> rank 00:11:31.710 --> 00:11:31.720 align:start position:0% but if I give him four they might rank 00:11:31.720 --> 00:11:33.750 align:start position:0% but if I give him four they might rank if<00:11:31.800> I<00:11:31.959> give<00:11:32.079> him<00:11:32.240> 50<00:11:32.639> they<00:11:32.720> have<00:11:32.880> no<00:11:33.040> clue<00:11:33.600> the 00:11:33.750 --> 00:11:33.760 align:start position:0% if I give him 50 they have no clue the 00:11:33.760 --> 00:11:35.710 align:start position:0% if I give him 50 they have no clue the investors<00:11:34.200> that<00:11:34.320> are<00:11:34.519> not<00:11:34.959> terribly 00:11:35.710 --> 00:11:35.720 align:start position:0% investors that are not terribly 00:11:35.720 --> 00:11:38.269 align:start position:0% investors that are not terribly sophisticated<00:11:36.720> rely<00:11:37.440> on<00:11:37.800> on<00:11:38.079> on 00:11:38.269 --> 00:11:38.279 align:start position:0% sophisticated rely on on on 00:11:38.279 --> 00:11:41.670 align:start position:0% sophisticated rely on on on organizations<00:11:39.279> exactly<00:11:39.760> like<00:11:40.120> yours<00:11:41.120> where 00:11:41.670 --> 00:11:41.680 align:start position:0% organizations exactly like yours where 00:11:41.680 --> 00:11:43.790 align:start position:0% organizations exactly like yours where where<00:11:41.959> you<00:11:42.320> provide<00:11:42.760> some<00:11:43.079> guidance<00:11:43.519> about 00:11:43.790 --> 00:11:43.800 align:start position:0% where you provide some guidance about 00:11:43.800 --> 00:11:46.069 align:start position:0% where you provide some guidance about how<00:11:43.959> will<00:11:44.160> you<00:11:44.360> aggregate<00:11:44.880> that<00:11:45.440> and<00:11:45.600> it's<00:11:45.880> uh 00:11:46.069 --> 00:11:46.079 align:start position:0% how will you aggregate that and it's uh 00:11:46.079 --> 00:11:48.430 align:start position:0% how will you aggregate that and it's uh and<00:11:46.240> and<00:11:46.360> it's<00:11:46.639> absolutely<00:11:47.240> crucial<00:11:48.240> by<00:11:48.360> the 00:11:48.430 --> 00:11:48.440 align:start position:0% and and it's absolutely crucial by the 00:11:48.440 --> 00:11:50.509 align:start position:0% and and it's absolutely crucial by the way<00:11:48.600> we<00:11:48.720> do<00:11:48.920> this<00:11:49.120> with<00:11:49.279> almost<00:11:49.639> everything<00:11:50.320> in 00:11:50.509 --> 00:11:50.519 align:start position:0% way we do this with almost everything in 00:11:50.519 --> 00:11:52.629 align:start position:0% way we do this with almost everything in finance<00:11:51.079> and<00:11:51.480> and<00:11:51.600> in<00:11:51.720> our<00:11:51.920> lives<00:11:52.360> when<00:11:52.480> we 00:11:52.629 --> 00:11:52.639 align:start position:0% finance and and in our lives when we 00:11:52.639 --> 00:11:54.150 align:start position:0% finance and and in our lives when we look<00:11:52.760> at<00:11:52.880> a<00:11:53.000> building<00:11:53.560> is<00:11:53.720> not<00:11:53.880> like<00:11:54.040> the 00:11:54.150 --> 00:11:54.160 align:start position:0% look at a building is not like the 00:11:54.160 --> 00:11:56.910 align:start position:0% look at a building is not like the building<00:11:54.560> reports<00:11:55.440> the<00:11:55.639> windows<00:11:56.519> the 00:11:56.910 --> 00:11:56.920 align:start position:0% building reports the windows the 00:11:56.920 --> 00:12:00.030 align:start position:0% building reports the windows the ventilation<00:11:57.920> the<00:11:58.120> HVAC<00:11:59.079> and<00:11:59.600> you<00:11:59.720> know<00:11:59.880> the 00:12:00.030 --> 00:12:00.040 align:start position:0% ventilation the HVAC and you know the 00:12:00.040 --> 00:12:01.829 align:start position:0% ventilation the HVAC and you know the carpet<00:12:00.519> and<00:12:00.680> you<00:12:00.760> know<00:12:01.000> the<00:12:01.160> the<00:12:01.320> screen 00:12:01.829 --> 00:12:01.839 align:start position:0% carpet and you know the the screen 00:12:01.839 --> 00:12:03.190 align:start position:0% carpet and you know the the screen whether<00:12:02.040> not<00:12:02.200> is<00:12:02.360> automatic<00:12:02.800> or<00:12:02.920> not<00:12:03.120> they 00:12:03.190 --> 00:12:03.200 align:start position:0% whether not is automatic or not they 00:12:03.200 --> 00:12:05.269 align:start position:0% whether not is automatic or not they don't<00:12:03.399> report<00:12:03.800> that<00:12:04.320> they<00:12:04.680> they<00:12:04.800> tell<00:12:05.000> you<00:12:05.160> a 00:12:05.269 --> 00:12:05.279 align:start position:0% don't report that they they tell you a 00:12:05.279 --> 00:12:07.670 align:start position:0% don't report that they they tell you a ranking<00:12:06.040> they<00:12:06.200> give<00:12:06.320> you<00:12:06.399> a<00:12:06.519> number<00:12:07.320> and<00:12:07.480> we 00:12:07.670 --> 00:12:07.680 align:start position:0% ranking they give you a number and we 00:12:07.680 --> 00:12:10.629 align:start position:0% ranking they give you a number and we trust<00:12:08.160> that<00:12:08.680> to<00:12:08.959> reflect<00:12:09.440> a<00:12:09.760> combination<00:12:10.360> of 00:12:10.629 --> 00:12:10.639 align:start position:0% trust that to reflect a combination of 00:12:10.639 --> 00:12:12.870 align:start position:0% trust that to reflect a combination of things<00:12:11.000> that<00:12:11.160> are<00:12:11.440> really<00:12:11.800> hard<00:12:12.639> for 00:12:12.870 --> 00:12:12.880 align:start position:0% things that are really hard for 00:12:12.880 --> 00:12:16.310 align:start position:0% things that are really hard for non-technical<00:12:13.720> people<00:12:14.079> to<00:12:14.639> to<00:12:15.120> to 00:12:16.310 --> 00:12:16.320 align:start position:0% non-technical people to to to 00:12:16.320 --> 00:12:18.750 align:start position:0% non-technical people to to to digest<00:12:17.320> and<00:12:17.480> then<00:12:17.920> and<00:12:18.079> then<00:12:18.279> you<00:12:18.399> know<00:12:18.519> we<00:12:18.639> get 00:12:18.750 --> 00:12:18.760 align:start position:0% digest and then and then you know we get 00:12:18.760 --> 00:12:20.829 align:start position:0% digest and then and then you know we get a<00:12:18.920> ranking<00:12:19.560> well<00:12:19.720> I<00:12:19.800> think<00:12:19.959> one<00:12:20.199> reason<00:12:20.480> we<00:12:20.639> get 00:12:20.829 --> 00:12:20.839 align:start position:0% a ranking well I think one reason we get 00:12:20.839 --> 00:12:23.389 align:start position:0% a ranking well I think one reason we get this<00:12:21.040> question<00:12:21.839> about<00:12:22.240> cide<00:12:22.760> ratings<00:12:23.079> is<00:12:23.279> that 00:12:23.389 --> 00:12:23.399 align:start position:0% this question about cide ratings is that 00:12:23.399 --> 00:12:25.230 align:start position:0% this question about cide ratings is that investors<00:12:23.760> are<00:12:23.959> used<00:12:24.199> to<00:12:24.360> sside<00:12:24.800> ratings<00:12:25.120> and 00:12:25.230 --> 00:12:25.240 align:start position:0% investors are used to sside ratings and 00:12:25.240 --> 00:12:26.870 align:start position:0% investors are used to sside ratings and that<00:12:25.360> means<00:12:25.639> that<00:12:26.000> they're<00:12:26.240> used<00:12:26.480> to<00:12:26.639> a 00:12:26.870 --> 00:12:26.880 align:start position:0% that means that they're used to a 00:12:26.880 --> 00:12:28.829 align:start position:0% that means that they're used to a dispersion<00:12:27.480> of<00:12:27.720> opinions<00:12:28.440> right<00:12:28.600> and<00:12:28.680> that 00:12:28.829 --> 00:12:28.839 align:start position:0% dispersion of opinions right and that 00:12:28.839 --> 00:12:30.750 align:start position:0% dispersion of opinions right and that dispers<00:12:29.160> I<00:12:29.519> is<00:12:29.680> actually<00:12:29.959> what<00:12:30.120> gives<00:12:30.399> them<00:12:30.639> a 00:12:30.750 --> 00:12:30.760 align:start position:0% dispers I is actually what gives them a 00:12:30.760 --> 00:12:33.590 align:start position:0% dispers I is actually what gives them a fuller<00:12:31.120> set<00:12:31.320> of<00:12:31.519> information<00:12:32.519> so<00:12:33.079> you<00:12:33.199> know 00:12:33.590 --> 00:12:33.600 align:start position:0% fuller set of information so you know 00:12:33.600 --> 00:12:35.710 align:start position:0% fuller set of information so you know what<00:12:33.680> do<00:12:33.800> you<00:12:34.000> think<00:12:34.240> about<00:12:34.920> the<00:12:35.360> the<00:12:35.560> fact 00:12:35.710 --> 00:12:35.720 align:start position:0% what do you think about the the fact 00:12:35.720 --> 00:12:37.269 align:start position:0% what do you think about the the fact that<00:12:35.880> the<00:12:36.040> diverence<00:12:36.600> that<00:12:36.720> you<00:12:36.839> have<00:12:36.959> found 00:12:37.269 --> 00:12:37.279 align:start position:0% that the diverence that you have found 00:12:37.279 --> 00:12:39.230 align:start position:0% that the diverence that you have found in<00:12:37.399> your<00:12:37.600> studies<00:12:38.120> that<00:12:38.320> in<00:12:38.480> itself<00:12:38.959> might 00:12:39.230 --> 00:12:39.240 align:start position:0% in your studies that in itself might 00:12:39.240 --> 00:12:41.189 align:start position:0% in your studies that in itself might actually<00:12:39.519> be<00:12:39.839> providing<00:12:40.839> um<00:12:40.959> more 00:12:41.189 --> 00:12:41.199 align:start position:0% actually be providing um more 00:12:41.199 --> 00:12:42.750 align:start position:0% actually be providing um more information<00:12:41.680> for<00:12:41.920> investors<00:12:42.440> that<00:12:42.560> they're 00:12:42.750 --> 00:12:42.760 align:start position:0% information for investors that they're 00:12:42.760 --> 00:12:44.790 align:start position:0% information for investors that they're using<00:12:43.240> in<00:12:43.399> in<00:12:43.519> their<00:12:43.720> investment 00:12:44.790 --> 00:12:44.800 align:start position:0% using in in their investment 00:12:44.800 --> 00:12:47.910 align:start position:0% using in in their investment decisions<00:12:45.800> okay<00:12:46.160> so<00:12:46.639> that<00:12:47.040> that<00:12:47.320> also<00:12:47.600> depends 00:12:47.910 --> 00:12:47.920 align:start position:0% decisions okay so that that also depends 00:12:47.920 --> 00:12:50.150 align:start position:0% decisions okay so that that also depends on<00:12:48.079> the<00:12:48.240> rating<00:12:48.680> for<00:12:48.800> example<00:12:49.160> msci<00:12:49.720> is<00:12:49.880> super 00:12:50.150 --> 00:12:50.160 align:start position:0% on the rating for example msci is super 00:12:50.160 --> 00:12:52.470 align:start position:0% on the rating for example msci is super open<00:12:50.440> and<00:12:50.600> super<00:12:50.880> transparent<00:12:51.839> so<00:12:52.079> you<00:12:52.240> tend 00:12:52.470 --> 00:12:52.480 align:start position:0% open and super transparent so you tend 00:12:52.480 --> 00:12:54.509 align:start position:0% open and super transparent so you tend to<00:12:52.920> explain<00:12:53.360> more<00:12:53.480> or<00:12:53.600> less<00:12:53.800> how<00:12:53.920> you<00:12:54.120> compute 00:12:54.509 --> 00:12:54.519 align:start position:0% to explain more or less how you compute 00:12:54.519 --> 00:12:57.629 align:start position:0% to explain more or less how you compute things<00:12:54.800> so<00:12:55.000> the<00:12:55.680> dispers<00:12:56.680> I<00:12:56.800> can<00:12:57.079> make<00:12:57.360> sense 00:12:57.629 --> 00:12:57.639 align:start position:0% things so the dispers I can make sense 00:12:57.639 --> 00:12:59.710 align:start position:0% things so the dispers I can make sense of<00:12:57.839> that<00:12:58.079> dispers<00:12:58.800> when<00:12:59.199> look<00:12:59.360> at<00:12:59.480> you<00:12:59.639> but 00:12:59.710 --> 00:12:59.720 align:start position:0% of that dispers when look at you but 00:12:59.720 --> 00:13:01.189 align:start position:0% of that dispers when look at you but there<00:12:59.800> are<00:12:59.920> some<00:13:00.120> rating<00:13:00.480> agencies<00:13:00.880> that<00:13:01.079> they 00:13:01.189 --> 00:13:01.199 align:start position:0% there are some rating agencies that they 00:13:01.199 --> 00:13:03.790 align:start position:0% there are some rating agencies that they are<00:13:01.440> just<00:13:01.720> incredibly<00:13:02.279> opaque<00:13:03.279> so<00:13:03.639> it's 00:13:03.790 --> 00:13:03.800 align:start position:0% are just incredibly opaque so it's 00:13:03.800 --> 00:13:05.230 align:start position:0% are just incredibly opaque so it's almost<00:13:04.040> like<00:13:04.199> giving<00:13:04.399> me<00:13:04.519> a<00:13:04.680> number<00:13:05.040> there's 00:13:05.230 --> 00:13:05.240 align:start position:0% almost like giving me a number there's 00:13:05.240 --> 00:13:08.389 align:start position:0% almost like giving me a number there's no<00:13:05.519> rationale<00:13:06.120> behind<00:13:06.440> it<00:13:07.279> so<00:13:07.639> those<00:13:08.199> those 00:13:08.389 --> 00:13:08.399 align:start position:0% no rationale behind it so those those 00:13:08.399 --> 00:13:09.910 align:start position:0% no rationale behind it so those those numbers<00:13:08.800> I<00:13:09.000> actually<00:13:09.320> I<00:13:09.399> don't<00:13:09.600> think<00:13:09.760> that 00:13:09.910 --> 00:13:09.920 align:start position:0% numbers I actually I don't think that 00:13:09.920 --> 00:13:11.949 align:start position:0% numbers I actually I don't think that they're<00:13:10.160> use<00:13:10.760> that<00:13:10.959> useful<00:13:11.600> well<00:13:11.720> I<00:13:11.839> think 00:13:11.949 --> 00:13:11.959 align:start position:0% they're use that useful well I think 00:13:11.959 --> 00:13:13.189 align:start position:0% they're use that useful well I think it's<00:13:12.120> interesting<00:13:12.519> that<00:13:12.639> you<00:13:12.760> found<00:13:13.040> this 00:13:13.189 --> 00:13:13.199 align:start position:0% it's interesting that you found this 00:13:13.199 --> 00:13:15.790 align:start position:0% it's interesting that you found this Raider<00:13:13.800> effect<00:13:14.320> right<00:13:14.680> because<00:13:15.320> many<00:13:15.519> of<00:13:15.600> our 00:13:15.790 --> 00:13:15.800 align:start position:0% Raider effect right because many of our 00:13:15.800 --> 00:13:18.310 align:start position:0% Raider effect right because many of our clients<00:13:16.240> who<00:13:16.480> really<00:13:16.760> know<00:13:17.480> the<00:13:17.639> methodology 00:13:18.310 --> 00:13:18.320 align:start position:0% clients who really know the methodology 00:13:18.320 --> 00:13:20.269 align:start position:0% clients who really know the methodology well<00:13:18.959> they<00:13:19.440> understand<00:13:19.639> the<00:13:19.800> specific 00:13:20.269 --> 00:13:20.279 align:start position:0% well they understand the specific 00:13:20.279 --> 00:13:22.310 align:start position:0% well they understand the specific features<00:13:20.880> of<00:13:21.079> our<00:13:21.320> methodology<00:13:22.000> that<00:13:22.160> they 00:13:22.310 --> 00:13:22.320 align:start position:0% features of our methodology that they 00:13:22.320 --> 00:13:23.829 align:start position:0% features of our methodology that they disagree<00:13:22.800> with<00:13:22.959> so<00:13:23.240> that<00:13:23.440> they<00:13:23.560> will 00:13:23.829 --> 00:13:23.839 align:start position:0% disagree with so that they will 00:13:23.839 --> 00:13:26.310 align:start position:0% disagree with so that they will systematically<00:13:24.639> adjust<00:13:25.160> those<00:13:25.399> components 00:13:26.310 --> 00:13:26.320 align:start position:0% systematically adjust those components 00:13:26.320 --> 00:13:28.590 align:start position:0% systematically adjust those components to<00:13:26.600> better<00:13:26.959> reflect<00:13:27.320> their<00:13:27.519> View<00:13:28.000> and<00:13:28.160> so<00:13:28.480> part 00:13:28.590 --> 00:13:28.600 align:start position:0% to better reflect their View and so part 00:13:28.600 --> 00:13:31.230 align:start position:0% to better reflect their View and so part of<00:13:28.720> the<00:13:28.800> reason<00:13:29.199> to<00:13:29.320> be<00:13:29.440> transparent<00:13:30.360> is<00:13:30.959> that 00:13:31.230 --> 00:13:31.240 align:start position:0% of the reason to be transparent is that 00:13:31.240 --> 00:13:33.350 align:start position:0% of the reason to be transparent is that we<00:13:31.440> can<00:13:31.760> have<00:13:32.040> these<00:13:32.720> um<00:13:32.839> long-standing 00:13:33.350 --> 00:13:33.360 align:start position:0% we can have these um long-standing 00:13:33.360 --> 00:13:35.470 align:start position:0% we can have these um long-standing discussions<00:13:34.120> where<00:13:34.320> some<00:13:34.440> of<00:13:34.560> the<00:13:34.720> clients<00:13:35.279> do 00:13:35.470 --> 00:13:35.480 align:start position:0% discussions where some of the clients do 00:13:35.480 --> 00:13:36.910 align:start position:0% discussions where some of the clients do want<00:13:35.600> to<00:13:35.760> underweight<00:13:36.279> or<00:13:36.440> overweight 00:13:36.910 --> 00:13:36.920 align:start position:0% want to underweight or overweight 00:13:36.920 --> 00:13:39.550 align:start position:0% want to underweight or overweight certain<00:13:37.279> elements<00:13:38.279> um<00:13:38.519> and<00:13:38.639> so<00:13:38.959> I<00:13:39.040> think<00:13:39.240> that 00:13:39.550 --> 00:13:39.560 align:start position:0% certain elements um and so I think that 00:13:39.560 --> 00:13:41.509 align:start position:0% certain elements um and so I think that that<00:13:39.920> that<00:13:40.079> Raider<00:13:40.639> effect<00:13:41.000> that<00:13:41.199> that<00:13:41.320> you 00:13:41.509 --> 00:13:41.519 align:start position:0% that that Raider effect that that you 00:13:41.519 --> 00:13:43.750 align:start position:0% that that Raider effect that that you found<00:13:42.079> is<00:13:42.320> is<00:13:42.560> definitely<00:13:43.160> there<00:13:43.440> but<00:13:43.560> it's 00:13:43.750 --> 00:13:43.760 align:start position:0% found is is definitely there but it's 00:13:43.760 --> 00:13:47.150 align:start position:0% found is is definitely there but it's also<00:13:43.959> a<00:13:44.600> systematic<00:13:45.600> um<00:13:46.040> difference<00:13:46.600> that<00:13:47.000> in 00:13:47.150 --> 00:13:47.160 align:start position:0% also a systematic um difference that in 00:13:47.160 --> 00:13:49.030 align:start position:0% also a systematic um difference that in some<00:13:47.399> ways<00:13:47.600> the<00:13:47.760> predictability<00:13:48.560> of<00:13:48.680> it<00:13:48.880> is 00:13:49.030 --> 00:13:49.040 align:start position:0% some ways the predictability of it is 00:13:49.040 --> 00:13:51.110 align:start position:0% some ways the predictability of it is what<00:13:49.160> makes<00:13:49.360> it<00:13:49.519> sort<00:13:49.680> of<00:13:49.760> useful<00:13:50.240> for<00:13:50.759> for<00:13:50.959> for 00:13:51.110 --> 00:13:51.120 align:start position:0% what makes it sort of useful for for for 00:13:51.120 --> 00:13:53.670 align:start position:0% what makes it sort of useful for for for clients<00:13:51.440> who<00:13:51.600> want<00:13:51.759> to<00:13:51.959> reflect<00:13:52.320> their<00:13:52.480> own<00:13:53.279> um 00:13:53.670 --> 00:13:53.680 align:start position:0% clients who want to reflect their own um 00:13:53.680 --> 00:13:57.389 align:start position:0% clients who want to reflect their own um on<00:13:54.040> use<00:13:54.839> yeah<00:13:55.079> I<00:13:55.519> I<00:13:55.800> I<00:13:56.079> I<00:13:56.320> agree<00:13:56.880> so<00:13:57.120> what<00:13:57.279> this 00:13:57.389 --> 00:13:57.399 align:start position:0% on use yeah I I I I agree so what this 00:13:57.399 --> 00:13:59.829 align:start position:0% on use yeah I I I I agree so what this means<00:13:57.680> is<00:13:57.800> that<00:13:58.160> there's<00:13:58.399> no<00:13:58.600> substitute<00:13:59.199> to 00:13:59.829 --> 00:13:59.839 align:start position:0% means is that there's no substitute to 00:13:59.839 --> 00:14:02.350 align:start position:0% means is that there's no substitute to thinking<00:14:00.839> from<00:14:01.360> from<00:14:01.519> the<00:14:01.680> client's<00:14:02.040> point<00:14:02.240> of 00:14:02.350 --> 00:14:02.360 align:start position:0% thinking from from the client's point of 00:14:02.360 --> 00:14:04.509 align:start position:0% thinking from from the client's point of view<00:14:03.120> yeah<00:14:03.600> it's<00:14:03.839> exactly<00:14:04.199> what<00:14:04.320> you're 00:14:04.509 --> 00:14:04.519 align:start position:0% view yeah it's exactly what you're 00:14:04.519 --> 00:14:08.310 align:start position:0% view yeah it's exactly what you're saying<00:14:04.880> it's<00:14:05.079> you<00:14:05.720> know<00:14:06.720> um<00:14:07.199> so<00:14:07.720> one<00:14:08.000> question 00:14:08.310 --> 00:14:08.320 align:start position:0% saying it's you know um so one question 00:14:08.320 --> 00:14:11.230 align:start position:0% saying it's you know um so one question I<00:14:08.560> also<00:14:09.199> always<00:14:09.600> get<00:14:10.040> is<00:14:10.320> you<00:14:10.440> know<00:14:10.720> will<00:14:11.000> there 00:14:11.230 --> 00:14:11.240 align:start position:0% I also always get is you know will there 00:14:11.240 --> 00:14:13.550 align:start position:0% I also always get is you know will there be<00:14:11.440> more<00:14:11.720> convergence<00:14:12.360> between<00:14:12.720> ratings<00:14:13.279> I<00:14:13.440> do 00:14:13.550 --> 00:14:13.560 align:start position:0% be more convergence between ratings I do 00:14:13.560 --> 00:14:15.069 align:start position:0% be more convergence between ratings I do you<00:14:13.759> think<00:14:14.000> that<00:14:14.199> there<00:14:14.320> will<00:14:14.519> be<00:14:14.720> in<00:14:14.839> the 00:14:15.069 --> 00:14:15.079 align:start position:0% you think that there will be in the 00:14:15.079 --> 00:14:17.629 align:start position:0% you think that there will be in the future<00:14:15.800> and<00:14:16.000> actually<00:14:16.279> should<00:14:16.560> there<00:14:16.759> be<00:14:17.000> more 00:14:17.629 --> 00:14:17.639 align:start position:0% future and actually should there be more 00:14:17.639 --> 00:14:21.350 align:start position:0% future and actually should there be more convergence<00:14:18.240> toward<00:14:19.240> ratings<00:14:20.240> again<00:14:20.519> it 00:14:21.350 --> 00:14:21.360 align:start position:0% convergence toward ratings again it 00:14:21.360 --> 00:14:24.230 align:start position:0% convergence toward ratings again it depends<00:14:22.360> to<00:14:22.560> whom<00:14:22.759> you<00:14:22.920> talk<00:14:23.440> you<00:14:23.560> know<00:14:24.000> an 00:14:24.230 --> 00:14:24.240 align:start position:0% depends to whom you talk you know an 00:14:24.240 --> 00:14:25.870 align:start position:0% depends to whom you talk you know an investor<00:14:24.680> that<00:14:24.800> would<00:14:25.000> like<00:14:25.160> to<00:14:25.320> have<00:14:25.600> one 00:14:25.870 --> 00:14:25.880 align:start position:0% investor that would like to have one 00:14:25.880 --> 00:14:28.269 align:start position:0% investor that would like to have one number<00:14:26.279> so<00:14:26.480> I<00:14:26.639> make<00:14:27.079> my<00:14:27.279> own<00:14:27.600> decision<00:14:28.120> whether 00:14:28.269 --> 00:14:28.279 align:start position:0% number so I make my own decision whether 00:14:28.279 --> 00:14:30.509 align:start position:0% number so I make my own decision whether or<00:14:28.360> not<00:14:28.560> a<00:14:28.680> buy<00:14:28.839> or<00:14:29.120> not<00:14:29.279> a<00:14:29.440> stock<00:14:29.680> or<00:14:29.880> i<00:14:30.040> t<00:14:30.360> my 00:14:30.509 --> 00:14:30.519 align:start position:0% or not a buy or not a stock or i t my 00:14:30.519 --> 00:14:32.590 align:start position:0% or not a buy or not a stock or i t my portfolio<00:14:31.120> or<00:14:31.279> I<00:14:31.440> engage<00:14:31.920> so<00:14:32.120> like<00:14:32.279> imagine 00:14:32.590 --> 00:14:32.600 align:start position:0% portfolio or I engage so like imagine 00:14:32.600 --> 00:14:34.590 align:start position:0% portfolio or I engage so like imagine that<00:14:32.720> I<00:14:32.839> just<00:14:32.959> need<00:14:33.320> one<00:14:33.560> number<00:14:34.000> to<00:14:34.199> decide 00:14:34.590 --> 00:14:34.600 align:start position:0% that I just need one number to decide 00:14:34.600 --> 00:14:37.430 align:start position:0% that I just need one number to decide what<00:14:34.720> to<00:14:34.880> do<00:14:35.720> then<00:14:36.000> that<00:14:36.360> investor<00:14:36.839> will<00:14:37.199> like 00:14:37.430 --> 00:14:37.440 align:start position:0% what to do then that investor will like 00:14:37.440 --> 00:14:39.509 align:start position:0% what to do then that investor will like to<00:14:37.680> have<00:14:37.959> convergence<00:14:38.959> but<00:14:39.120> from<00:14:39.320> the 00:14:39.509 --> 00:14:39.519 align:start position:0% to have convergence but from the 00:14:39.519 --> 00:14:42.829 align:start position:0% to have convergence but from the perspective<00:14:40.160> of<00:14:40.880> information<00:14:41.639> provision<00:14:42.639> I 00:14:42.829 --> 00:14:42.839 align:start position:0% perspective of information provision I 00:14:42.839 --> 00:14:45.189 align:start position:0% perspective of information provision I actually<00:14:43.079> think<00:14:43.279> that<00:14:43.480> Divergence<00:14:44.079> is<00:14:44.320> good 00:14:45.189 --> 00:14:45.199 align:start position:0% actually think that Divergence is good 00:14:45.199 --> 00:14:47.790 align:start position:0% actually think that Divergence is good and<00:14:45.320> let<00:14:45.440> me<00:14:45.560> explain<00:14:46.079> why<00:14:46.360> in<00:14:46.560> a<00:14:46.759> a<00:14:46.880> little<00:14:47.120> bit 00:14:47.790 --> 00:14:47.800 align:start position:0% and let me explain why in a a little bit 00:14:47.800 --> 00:14:49.790 align:start position:0% and let me explain why in a a little bit there<00:14:47.920> are<00:14:48.120> many<00:14:48.519> aspects<00:14:48.880> that<00:14:49.000> are<00:14:49.320> there 00:14:49.790 --> 00:14:49.800 align:start position:0% there are many aspects that are there 00:14:49.800 --> 00:14:52.590 align:start position:0% there are many aspects that are there that<00:14:50.279> we<00:14:50.720> really<00:14:51.040> don't<00:14:51.279> know<00:14:51.560> how<00:14:51.720> to<00:14:51.920> measure 00:14:52.590 --> 00:14:52.600 align:start position:0% that we really don't know how to measure 00:14:52.600 --> 00:14:54.269 align:start position:0% that we really don't know how to measure I<00:14:52.680> mean<00:14:52.880> I<00:14:53.120> really<00:14:53.399> don't<00:14:53.600> think<00:14:53.800> that<00:14:53.920> we<00:14:54.040> know 00:14:54.269 --> 00:14:54.279 align:start position:0% I mean I really don't think that we know 00:14:54.279 --> 00:14:56.910 align:start position:0% I mean I really don't think that we know how<00:14:54.399> to<00:14:54.560> measure<00:14:54.959> discrimination<00:14:55.839> properly<00:14:56.839> I 00:14:56.910 --> 00:14:56.920 align:start position:0% how to measure discrimination properly I 00:14:56.920 --> 00:14:59.110 align:start position:0% how to measure discrimination properly I don't<00:14:57.079> think<00:14:57.320> we<00:14:57.680> know<00:14:57.880> how<00:14:58.000> to<00:14:58.199> measure 00:14:59.110 --> 00:14:59.120 align:start position:0% don't think we know how to measure 00:14:59.120 --> 00:15:01.949 align:start position:0% don't think we know how to measure happiness<00:14:59.639> properly<00:15:00.440> sadness<00:15:01.440> we<00:15:01.560> don't<00:15:01.839> we 00:15:01.949 --> 00:15:01.959 align:start position:0% happiness properly sadness we don't we 00:15:01.959 --> 00:15:03.550 align:start position:0% happiness properly sadness we don't we don't<00:15:02.120> know<00:15:02.279> how<00:15:02.399> to<00:15:02.519> measure<00:15:02.880> this<00:15:03.399> we 00:15:03.550 --> 00:15:03.560 align:start position:0% don't know how to measure this we 00:15:03.560 --> 00:15:06.310 align:start position:0% don't know how to measure this we measure<00:15:03.920> the<00:15:04.120> extremes<00:15:05.040> so<00:15:05.279> we<00:15:05.440> need<00:15:05.720> a<00:15:05.880> lot<00:15:06.040> of 00:15:06.310 --> 00:15:06.320 align:start position:0% measure the extremes so we need a lot of 00:15:06.320 --> 00:15:08.269 align:start position:0% measure the extremes so we need a lot of innovation<00:15:07.120> on<00:15:07.320> thinking<00:15:07.720> about<00:15:07.959> how<00:15:08.120> to 00:15:08.269 --> 00:15:08.279 align:start position:0% innovation on thinking about how to 00:15:08.279 --> 00:15:10.790 align:start position:0% innovation on thinking about how to measure<00:15:08.720> this<00:15:09.360> and<00:15:09.519> that<00:15:09.720> will<00:15:09.959> is<00:15:10.079> only<00:15:10.639> going 00:15:10.790 --> 00:15:10.800 align:start position:0% measure this and that will is only going 00:15:10.800 --> 00:15:12.470 align:start position:0% measure this and that will is only going to<00:15:10.959> happen<00:15:11.240> only<00:15:11.440> if<00:15:11.519> we<00:15:11.639> are<00:15:11.880> compet 00:15:12.470 --> 00:15:12.480 align:start position:0% to happen only if we are compet 00:15:12.480 --> 00:15:14.269 align:start position:0% to happen only if we are compet competing<00:15:13.000> against<00:15:13.279> each<00:15:13.399> other<00:15:13.800> I<00:15:13.839> mean<00:15:14.040> like 00:15:14.269 --> 00:15:14.279 align:start position:0% competing against each other I mean like 00:15:14.279 --> 00:15:16.749 align:start position:0% competing against each other I mean like the<00:15:14.519> the<00:15:14.720> the<00:15:14.920> data<00:15:15.160> provess<00:15:15.480> are<00:15:15.759> competing 00:15:16.749 --> 00:15:16.759 align:start position:0% the the the data provess are competing 00:15:16.759 --> 00:15:18.990 align:start position:0% the the the data provess are competing so<00:15:17.079> that<00:15:17.279> you<00:15:17.480> find<00:15:17.720> a<00:15:17.920> better<00:15:18.279> data<00:15:18.560> source 00:15:18.990 --> 00:15:19.000 align:start position:0% so that you find a better data source 00:15:19.000 --> 00:15:20.629 align:start position:0% so that you find a better data source that<00:15:19.240> actually<00:15:19.519> is<00:15:19.680> more<00:15:19.880> meaningful<00:15:20.360> in<00:15:20.440> a 00:15:20.629 --> 00:15:20.639 align:start position:0% that actually is more meaningful in a 00:15:20.639 --> 00:15:23.269 align:start position:0% that actually is more meaningful in a particular<00:15:21.199> index<00:15:21.680> and<00:15:21.839> therefore<00:15:22.759> I<00:15:23.000> want 00:15:23.269 --> 00:15:23.279 align:start position:0% particular index and therefore I want 00:15:23.279 --> 00:15:25.230 align:start position:0% particular index and therefore I want you<00:15:23.519> to<00:15:23.680> have<00:15:23.880> the<00:15:24.000> ability<00:15:24.399> to<00:15:24.639> say<00:15:24.920> to<00:15:25.040> a 00:15:25.230 --> 00:15:25.240 align:start position:0% you to have the ability to say to a 00:15:25.240 --> 00:15:27.350 align:start position:0% you to have the ability to say to a competitor<00:15:26.079> or<00:15:26.240> or<00:15:26.399> or<00:15:26.519> to<00:15:26.639> the<00:15:26.839> client<00:15:27.240> you 00:15:27.350 --> 00:15:27.360 align:start position:0% competitor or or or to the client you 00:15:27.360 --> 00:15:28.470 align:start position:0% competitor or or or to the client you know<00:15:27.560> I<00:15:27.680> have<00:15:27.800> a<00:15:27.920> better<00:15:28.160> mat<00:15:28.360> of 00:15:28.470 --> 00:15:28.480 align:start position:0% know I have a better mat of 00:15:28.480 --> 00:15:30.590 align:start position:0% know I have a better mat of discrimination<00:15:29.160> because<00:15:29.600> I<00:15:29.759> invested<00:15:30.279> in<00:15:30.440> the 00:15:30.590 --> 00:15:30.600 align:start position:0% discrimination because I invested in the 00:15:30.600 --> 00:15:34.389 align:start position:0% discrimination because I invested in the R&D<00:15:31.079> to<00:15:31.279> produce<00:15:31.720> this<00:15:32.519> so<00:15:33.240> in<00:15:33.480> this<00:15:33.839> process 00:15:34.389 --> 00:15:34.399 align:start position:0% R&D to produce this so in this process 00:15:34.399 --> 00:15:36.269 align:start position:0% R&D to produce this so in this process of<00:15:34.839> measuring 00:15:36.269 --> 00:15:36.279 align:start position:0% of measuring 00:15:36.279 --> 00:15:39.269 align:start position:0% of measuring better<00:15:37.279> I<00:15:37.399> think<00:15:37.680> Divergence<00:15:38.360> is<00:15:38.639> good<00:15:39.120> you 00:15:39.269 --> 00:15:39.279 align:start position:0% better I think Divergence is good you 00:15:39.279 --> 00:15:41.670 align:start position:0% better I think Divergence is good you know<00:15:39.399> all<00:15:39.600> my<00:15:39.759> work<00:15:40.040> in<00:15:40.240> inflation<00:15:40.759> I<00:15:40.880> spent<00:15:41.240> 17 00:15:41.670 --> 00:15:41.680 align:start position:0% know all my work in inflation I spent 17 00:15:41.680 --> 00:15:43.509 align:start position:0% know all my work in inflation I spent 17 years<00:15:41.920> measuring<00:15:42.360> inflation<00:15:42.759> rate<00:15:43.160> this<00:15:43.319> also 00:15:43.509 --> 00:15:43.519 align:start position:0% years measuring inflation rate this also 00:15:43.519 --> 00:15:45.110 align:start position:0% years measuring inflation rate this also shows<00:15:43.800> that<00:15:43.959> we<00:15:44.160> academics<00:15:44.600> have<00:15:44.759> a<00:15:44.839> lot<00:15:45.000> of 00:15:45.110 --> 00:15:45.120 align:start position:0% shows that we academics have a lot of 00:15:45.120 --> 00:15:47.430 align:start position:0% shows that we academics have a lot of free<00:15:45.360> time 00:15:47.430 --> 00:15:47.440 align:start position:0% free time 00:15:47.440 --> 00:15:50.590 align:start position:0% free time okay<00:15:48.440> so<00:15:48.959> I<00:15:49.079> spent<00:15:49.399> 17<00:15:49.920> years<00:15:50.120> measuring 00:15:50.590 --> 00:15:50.600 align:start position:0% okay so I spent 17 years measuring 00:15:50.600 --> 00:15:53.230 align:start position:0% okay so I spent 17 years measuring inflation<00:15:51.480> and<00:15:51.600> I<00:15:51.680> have<00:15:51.839> been<00:15:52.519> spending<00:15:52.959> eight 00:15:53.230 --> 00:15:53.240 align:start position:0% inflation and I have been spending eight 00:15:53.240 --> 00:15:55.590 align:start position:0% inflation and I have been spending eight years<00:15:53.480> measuring<00:15:53.880> on<00:15:54.079> ethical<00:15:54.480> behavior<00:15:55.480> and 00:15:55.590 --> 00:15:55.600 align:start position:0% years measuring on ethical behavior and 00:15:55.600 --> 00:15:59.350 align:start position:0% years measuring on ethical behavior and in<00:15:55.759> those<00:15:55.959> 17<00:15:56.440> years<00:15:57.279> I<00:15:57.360> can<00:15:57.560> tell<00:15:57.759> you<00:15:58.399> I<00:15:59.000> I<00:15:59.120> am 00:15:59.350 --> 00:15:59.360 align:start position:0% in those 17 years I can tell you I I am 00:15:59.360 --> 00:16:00.949 align:start position:0% in those 17 years I can tell you I I am absolutely<00:15:59.839> certain<00:16:00.240> that<00:16:00.360> there's<00:16:00.560> not<00:16:00.759> one 00:16:00.949 --> 00:16:00.959 align:start position:0% absolutely certain that there's not one 00:16:00.959 --> 00:16:02.629 align:start position:0% absolutely certain that there's not one inflation<00:16:01.360> rate<00:16:01.519> for<00:16:01.639> the<00:16:01.720> United<00:16:02.040> States 00:16:02.629 --> 00:16:02.639 align:start position:0% inflation rate for the United States 00:16:02.639 --> 00:16:04.230 align:start position:0% inflation rate for the United States that<00:16:02.800> there<00:16:02.880> are<00:16:03.079> thousand<00:16:03.639> thousands<00:16:04.040> and 00:16:04.230 --> 00:16:04.240 align:start position:0% that there are thousand thousands and 00:16:04.240 --> 00:16:06.069 align:start position:0% that there are thousand thousands and thousands<00:16:04.560> and<00:16:04.759> thousands<00:16:05.639> and<00:16:05.800> and<00:16:05.959> these 00:16:06.069 --> 00:16:06.079 align:start position:0% thousands and thousands and and these 00:16:06.079 --> 00:16:07.990 align:start position:0% thousands and thousands and and these are<00:16:06.240> all<00:16:06.519> criteria<00:16:07.079> and<00:16:07.240> judgments<00:16:07.720> that<00:16:07.880> you 00:16:07.990 --> 00:16:08.000 align:start position:0% are all criteria and judgments that you 00:16:08.000 --> 00:16:10.110 align:start position:0% are all criteria and judgments that you make<00:16:08.560> at<00:16:08.759> every<00:16:09.040> point<00:16:09.240> in<00:16:09.440> time<00:16:09.720> about<00:16:09.959> how 00:16:10.110 --> 00:16:10.120 align:start position:0% make at every point in time about how 00:16:10.120 --> 00:16:11.949 align:start position:0% make at every point in time about how you<00:16:10.319> deal<00:16:10.560> with<00:16:10.680> the<00:16:10.800> missing<00:16:11.279> data<00:16:11.720> how<00:16:11.839> do 00:16:11.949 --> 00:16:11.959 align:start position:0% you deal with the missing data how do 00:16:11.959 --> 00:16:13.269 align:start position:0% you deal with the missing data how do you<00:16:12.079> deal<00:16:12.279> with<00:16:12.399> the<00:16:12.560> fact<00:16:12.720> that<00:16:12.839> you<00:16:12.959> didn't 00:16:13.269 --> 00:16:13.279 align:start position:0% you deal with the fact that you didn't 00:16:13.279 --> 00:16:15.110 align:start position:0% you deal with the fact that you didn't find<00:16:13.519> the<00:16:13.680> product<00:16:13.959> in<00:16:14.079> the<00:16:14.199> store<00:16:14.440> I<00:16:14.519> mean 00:16:15.110 --> 00:16:15.120 align:start position:0% find the product in the store I mean 00:16:15.120 --> 00:16:16.670 align:start position:0% find the product in the store I mean millions<00:16:15.560> and<00:16:15.720> millions<00:16:16.079> and<00:16:16.240> millions<00:16:16.519> of 00:16:16.670 --> 00:16:16.680 align:start position:0% millions and millions and millions of 00:16:16.680 --> 00:16:19.030 align:start position:0% millions and millions and millions of assumptions<00:16:17.199> that<00:16:17.319> are<00:16:17.600> taken<00:16:18.519> uh<00:16:18.639> in<00:16:18.839> the 00:16:19.030 --> 00:16:19.040 align:start position:0% assumptions that are taken uh in the 00:16:19.040 --> 00:16:20.670 align:start position:0% assumptions that are taken uh in the construction<00:16:19.480> of<00:16:19.639> one<00:16:19.839> index<00:16:20.199> that<00:16:20.440> then 00:16:20.670 --> 00:16:20.680 align:start position:0% construction of one index that then 00:16:20.680 --> 00:16:23.829 align:start position:0% construction of one index that then moves<00:16:21.079> 70<00:16:21.639> trillion<00:16:22.639> so<00:16:22.880> I<00:16:23.360> I<00:16:23.440> always<00:16:23.639> tell 00:16:23.829 --> 00:16:23.839 align:start position:0% moves 70 trillion so I I always tell 00:16:23.839 --> 00:16:24.949 align:start position:0% moves 70 trillion so I I always tell people<00:16:24.079> you're<00:16:24.240> taking<00:16:24.480> this<00:16:24.639> a<00:16:24.720> little<00:16:24.839> bit 00:16:24.949 --> 00:16:24.959 align:start position:0% people you're taking this a little bit 00:16:24.959 --> 00:16:29.110 align:start position:0% people you're taking this a little bit too<00:16:25.120> seriously 00:16:29.110 --> 00:16:29.120 align:start position:0% 00:16:29.120 --> 00:16:30.870 align:start position:0% but<00:16:29.319> that<00:16:29.519> is<00:16:29.800> maybe<00:16:30.040> you<00:16:30.160> should<00:16:30.480> actually<00:16:30.720> be 00:16:30.870 --> 00:16:30.880 align:start position:0% but that is maybe you should actually be 00:16:30.880 --> 00:16:33.309 align:start position:0% but that is maybe you should actually be more<00:16:31.120> careful<00:16:31.839> like<00:16:32.040> this<00:16:32.120> is<00:16:32.360> not<00:16:33.040> this<00:16:33.160> is 00:16:33.309 --> 00:16:33.319 align:start position:0% more careful like this is not this is 00:16:33.319 --> 00:16:35.230 align:start position:0% more careful like this is not this is not<00:16:33.560> like<00:16:33.759> your<00:16:34.040> weight<00:16:34.480> when<00:16:34.639> you<00:16:34.800> go<00:16:34.920> to<00:16:35.079> the 00:16:35.230 --> 00:16:35.240 align:start position:0% not like your weight when you go to the 00:16:35.240 --> 00:16:37.509 align:start position:0% not like your weight when you go to the doctor<00:16:35.639> that's<00:16:35.839> a<00:16:36.079> way<00:16:36.319> better<00:16:36.600> measure<00:16:37.240> so 00:16:37.509 --> 00:16:37.519 align:start position:0% doctor that's a way better measure so 00:16:37.519 --> 00:16:41.990 align:start position:0% doctor that's a way better measure so ESG<00:16:38.440> is<00:16:38.920> uh<00:16:39.519> is<00:16:39.720> ORD<00:16:40.079> of<00:16:40.279> my<00:16:41.120> so<00:16:41.399> I<00:16:41.839> the 00:16:41.990 --> 00:16:42.000 align:start position:0% ESG is uh is ORD of my so I the 00:16:42.000 --> 00:16:44.309 align:start position:0% ESG is uh is ORD of my so I the despression<00:16:42.519> to<00:16:42.720> me<00:16:42.880> is<00:16:43.120> it<00:16:43.399> could<00:16:43.839> reflect 00:16:44.309 --> 00:16:44.319 align:start position:0% despression to me is it could reflect 00:16:44.319 --> 00:16:46.670 align:start position:0% despression to me is it could reflect also<00:16:44.680> this<00:16:45.000> competition<00:16:45.600> that<00:16:45.720> we<00:16:45.839> truly<00:16:46.160> need 00:16:46.670 --> 00:16:46.680 align:start position:0% also this competition that we truly need 00:16:46.680 --> 00:16:47.990 align:start position:0% also this competition that we truly need another<00:16:47.000> question<00:16:47.279> we<00:16:47.399> get<00:16:47.560> is<00:16:47.680> you<00:16:47.759> know<00:16:47.920> how 00:16:47.990 --> 00:16:48.000 align:start position:0% another question we get is you know how 00:16:48.000 --> 00:16:50.269 align:start position:0% another question we get is you know how do<00:16:48.120> you<00:16:48.680> how<00:16:48.800> can<00:16:48.959> we<00:16:49.079> tell<00:16:49.319> if<00:16:49.480> the<00:16:49.639> rating 00:16:50.269 --> 00:16:50.279 align:start position:0% do you how can we tell if the rating 00:16:50.279 --> 00:16:52.870 align:start position:0% do you how can we tell if the rating works<00:16:51.079> right<00:16:51.399> because<00:16:52.120> when<00:16:52.279> it's<00:16:52.480> something 00:16:52.870 --> 00:16:52.880 align:start position:0% works right because when it's something 00:16:52.880 --> 00:16:54.670 align:start position:0% works right because when it's something like<00:16:53.040> credit<00:16:53.279> ratings<00:16:53.759> we<00:16:53.880> can<00:16:54.079> measure<00:16:54.519> how 00:16:54.670 --> 00:16:54.680 align:start position:0% like credit ratings we can measure how 00:16:54.680 --> 00:16:56.870 align:start position:0% like credit ratings we can measure how good<00:16:54.880> they<00:16:54.959> are<00:16:55.120> at<00:16:55.279> predicting<00:16:55.720> defaults<00:16:56.720> um 00:16:56.870 --> 00:16:56.880 align:start position:0% good they are at predicting defaults um 00:16:56.880 --> 00:16:58.590 align:start position:0% good they are at predicting defaults um but<00:16:57.000> although<00:16:57.319> let's<00:16:57.480> not<00:16:57.680> forget<00:16:58.079> that<00:16:58.319> they 00:16:58.590 --> 00:16:58.600 align:start position:0% but although let's not forget that they 00:16:58.600 --> 00:17:01.590 align:start position:0% but although let's not forget that they t<00:16:58.959> 99%<00:16:59.759> correlation<00:17:00.240> at<00:17:00.440> failing<00:17:00.759> to<00:17:00.959> predict 00:17:01.590 --> 00:17:01.600 align:start position:0% t 99% correlation at failing to predict 00:17:01.600 --> 00:17:03.829 align:start position:0% t 99% correlation at failing to predict the<00:17:01.800> last<00:17:02.040> major<00:17:02.759> of<00:17:02.920> defaults<00:17:03.399> right<00:17:03.600> and<00:17:03.720> for 00:17:03.829 --> 00:17:03.839 align:start position:0% the last major of defaults right and for 00:17:03.839 --> 00:17:05.549 align:start position:0% the last major of defaults right and for cide<00:17:04.319> Ratings<00:17:04.600> I<00:17:04.720> guess<00:17:04.880> we<00:17:04.959> can<00:17:05.120> measure<00:17:05.439> kind 00:17:05.549 --> 00:17:05.559 align:start position:0% cide Ratings I guess we can measure kind 00:17:05.559 --> 00:17:07.789 align:start position:0% cide Ratings I guess we can measure kind of<00:17:05.640> forecast<00:17:06.199> accuracy<00:17:06.720> but<00:17:07.000> what<00:17:07.160> about<00:17:07.480> for 00:17:07.789 --> 00:17:07.799 align:start position:0% of forecast accuracy but what about for 00:17:07.799 --> 00:17:09.870 align:start position:0% of forecast accuracy but what about for for<00:17:08.000> ESG<00:17:08.439> ratings<00:17:08.919> because<00:17:09.480> you<00:17:09.559> know<00:17:09.720> our 00:17:09.870 --> 00:17:09.880 align:start position:0% for ESG ratings because you know our 00:17:09.880 --> 00:17:11.870 align:start position:0% for ESG ratings because you know our clients<00:17:10.160> certainly<00:17:10.480> ask<00:17:10.679> us<00:17:10.799> to<00:17:11.039> validate 00:17:11.870 --> 00:17:11.880 align:start position:0% clients certainly ask us to validate 00:17:11.880 --> 00:17:13.789 align:start position:0% clients certainly ask us to validate that<00:17:12.039> the<00:17:12.160> ratings<00:17:12.679> capture<00:17:13.199> what<00:17:13.360> it<00:17:13.439> says<00:17:13.640> it 00:17:13.789 --> 00:17:13.799 align:start position:0% that the ratings capture what it says it 00:17:13.799 --> 00:17:15.230 align:start position:0% that the ratings capture what it says it aims<00:17:14.039> to<00:17:14.199> capture<00:17:14.559> which<00:17:14.679> is<00:17:14.880> financial 00:17:15.230 --> 00:17:15.240 align:start position:0% aims to capture which is financial 00:17:15.240 --> 00:17:16.949 align:start position:0% aims to capture which is financial performance<00:17:15.760> so<00:17:16.000> so<00:17:16.199> we<00:17:16.319> do<00:17:16.559> that<00:17:16.760> we've 00:17:16.949 --> 00:17:16.959 align:start position:0% performance so so we do that we've 00:17:16.959 --> 00:17:18.789 align:start position:0% performance so so we do that we've published<00:17:17.280> our<00:17:17.520> results<00:17:18.000> we<00:17:18.199> just<00:17:18.360> put<00:17:18.520> out 00:17:18.789 --> 00:17:18.799 align:start position:0% published our results we just put out 00:17:18.799 --> 00:17:20.549 align:start position:0% published our results we just put out actually<00:17:19.000> a<00:17:19.160> new<00:17:19.319> study<00:17:19.640> on<00:17:19.799> the<00:17:19.959> relationship 00:17:20.549 --> 00:17:20.559 align:start position:0% actually a new study on the relationship 00:17:20.559 --> 00:17:22.710 align:start position:0% actually a new study on the relationship between<00:17:21.120> es<00:17:21.600> ratings<00:17:22.199> and<00:17:22.319> financial 00:17:22.710 --> 00:17:22.720 align:start position:0% between es ratings and financial 00:17:22.720 --> 00:17:25.069 align:start position:0% between es ratings and financial performance<00:17:23.199> over<00:17:23.400> the<00:17:23.520> past<00:17:23.720> 11<00:17:24.079> years<00:17:24.679> but 00:17:25.069 --> 00:17:25.079 align:start position:0% performance over the past 11 years but 00:17:25.079 --> 00:17:26.549 align:start position:0% performance over the past 11 years but you<00:17:25.199> know<00:17:25.400> as<00:17:25.520> we<00:17:25.640> said<00:17:25.799> at<00:17:25.959> the<00:17:26.039> outside<00:17:26.480> you 00:17:26.549 --> 00:17:26.559 align:start position:0% you know as we said at the outside you 00:17:26.559 --> 00:17:28.429 align:start position:0% you know as we said at the outside you know<00:17:26.640> not<00:17:26.799> all<00:17:27.000> ISU<00:17:27.400> rating<00:17:27.919> in<00:17:28.039> your<00:17:28.199> study 00:17:28.429 --> 00:17:28.439 align:start position:0% know not all ISU rating in your study 00:17:28.439 --> 00:17:29.990 align:start position:0% know not all ISU rating in your study are<00:17:28.559> certainly<00:17:29.000> aiming<00:17:29.280> to<00:17:29.480> capture<00:17:29.840> that 00:17:29.990 --> 00:17:30.000 align:start position:0% are certainly aiming to capture that 00:17:30.000 --> 00:17:31.390 align:start position:0% are certainly aiming to capture that financial<00:17:30.400> performance<00:17:30.840> so<00:17:31.039> how<00:17:31.120> do<00:17:31.240> you 00:17:31.390 --> 00:17:31.400 align:start position:0% financial performance so how do you 00:17:31.400 --> 00:17:33.870 align:start position:0% financial performance so how do you think<00:17:32.000> practitioners<00:17:32.600> should<00:17:32.799> be<00:17:33.120> evaluating 00:17:33.870 --> 00:17:33.880 align:start position:0% think practitioners should be evaluating 00:17:33.880 --> 00:17:36.630 align:start position:0% think practitioners should be evaluating then<00:17:34.080> the<00:17:34.400> effectiveness<00:17:35.400> um<00:17:35.679> of<00:17:36.240> of<00:17:36.360> any 00:17:36.630 --> 00:17:36.640 align:start position:0% then the effectiveness um of of any 00:17:36.640 --> 00:17:39.430 align:start position:0% then the effectiveness um of of any issue<00:17:37.000> rating<00:17:37.280> that<00:17:37.400> they're<00:17:37.640> considering<00:17:38.559> so 00:17:39.430 --> 00:17:39.440 align:start position:0% issue rating that they're considering so 00:17:39.440 --> 00:17:41.270 align:start position:0% issue rating that they're considering so when<00:17:39.600> I<00:17:39.760> look<00:17:39.919> at<00:17:40.320> the<00:17:40.480> the<00:17:40.600> equivalent<00:17:41.080> of 00:17:41.270 --> 00:17:41.280 align:start position:0% when I look at the the equivalent of 00:17:41.280 --> 00:17:43.990 align:start position:0% when I look at the the equivalent of credit<00:17:41.559> rating<00:17:42.280> agencies<00:17:43.280> uh<00:17:43.840> the 00:17:43.990 --> 00:17:44.000 align:start position:0% credit rating agencies uh the 00:17:44.000 --> 00:17:46.110 align:start position:0% credit rating agencies uh the equivalence<00:17:44.600> is<00:17:44.880> a<00:17:45.000> sovereign<00:17:45.400> default<00:17:45.919> not 00:17:46.110 --> 00:17:46.120 align:start position:0% equivalence is a sovereign default not 00:17:46.120 --> 00:17:47.909 align:start position:0% equivalence is a sovereign default not the<00:17:46.280> default<00:17:46.640> of<00:17:46.840> individuals<00:17:47.520> like<00:17:47.720> your 00:17:47.909 --> 00:17:47.919 align:start position:0% the default of individuals like your 00:17:47.919 --> 00:17:51.390 align:start position:0% the default of individuals like your FICO<00:17:48.400> score<00:17:48.760> or<00:17:48.960> the<00:17:49.240> firms<00:17:50.240> is<00:17:50.440> a<00:17:50.799> sovereign 00:17:51.390 --> 00:17:51.400 align:start position:0% FICO score or the firms is a sovereign 00:17:51.400 --> 00:17:54.230 align:start position:0% FICO score or the firms is a sovereign debt<00:17:52.400> and<00:17:52.679> and<00:17:52.919> credit<00:17:53.200> rating<00:17:53.559> agencies<00:17:54.039> on 00:17:54.230 --> 00:17:54.240 align:start position:0% debt and and credit rating agencies on 00:17:54.240 --> 00:17:56.110 align:start position:0% debt and and credit rating agencies on sovereign<00:17:54.600> debt<00:17:54.799> are<00:17:54.960> lousy<00:17:55.679> the<00:17:55.840> best 00:17:56.110 --> 00:17:56.120 align:start position:0% sovereign debt are lousy the best 00:17:56.120 --> 00:17:57.750 align:start position:0% sovereign debt are lousy the best predictor<00:17:56.679> that<00:17:56.840> they<00:17:57.080> actually<00:17:57.320> will<00:17:57.559> get 00:17:57.750 --> 00:17:57.760 align:start position:0% predictor that they actually will get 00:17:57.760 --> 00:18:00.510 align:start position:0% predictor that they actually will get something<00:17:58.080> correct<00:17:58.480> is<00:17:59.080> is<00:17:59.400> in<00:17:59.840> I<00:17:59.919> don't<00:18:00.080> know 00:18:00.510 --> 00:18:00.520 align:start position:0% something correct is is in I don't know 00:18:00.520 --> 00:18:02.310 align:start position:0% something correct is is in I don't know Argentina<00:18:01.200> because<00:18:01.400> Argentina<00:18:01.840> is<00:18:01.960> always<00:18:02.159> on 00:18:02.310 --> 00:18:02.320 align:start position:0% Argentina because Argentina is always on 00:18:02.320 --> 00:18:04.070 align:start position:0% Argentina because Argentina is always on theault<00:18:02.679> but<00:18:02.840> except<00:18:03.080> for 00:18:04.070 --> 00:18:04.080 align:start position:0% theault but except for 00:18:04.080 --> 00:18:06.990 align:start position:0% theault but except for that<00:18:05.080> very<00:18:05.640> difficult<00:18:06.080> for<00:18:06.280> them<00:18:06.400> to<00:18:06.559> nail<00:18:06.880> the 00:18:06.990 --> 00:18:07.000 align:start position:0% that very difficult for them to nail the 00:18:07.000 --> 00:18:08.950 align:start position:0% that very difficult for them to nail the default<00:18:07.320> and<00:18:07.480> so<00:18:07.600> you<00:18:07.720> are<00:18:07.919> correct<00:18:08.360> the<00:18:08.840> the 00:18:08.950 --> 00:18:08.960 align:start position:0% default and so you are correct the the 00:18:08.960 --> 00:18:11.149 align:start position:0% default and so you are correct the the the<00:18:09.120> Credit<00:18:09.400> rting<00:18:09.760> Agencies<00:18:10.159> make<00:18:10.640> very<00:18:10.880> big 00:18:11.149 --> 00:18:11.159 align:start position:0% the Credit rting Agencies make very big 00:18:11.159 --> 00:18:13.590 align:start position:0% the Credit rting Agencies make very big mistakes<00:18:12.120> for<00:18:12.440> aggregate<00:18:12.919> shocks<00:18:13.400> because 00:18:13.590 --> 00:18:13.600 align:start position:0% mistakes for aggregate shocks because 00:18:13.600 --> 00:18:16.909 align:start position:0% mistakes for aggregate shocks because they<00:18:13.679> are<00:18:13.840> very<00:18:14.480> unusual<00:18:15.480> so<00:18:16.240> when<00:18:16.400> I<00:18:16.600> think 00:18:16.909 --> 00:18:16.919 align:start position:0% they are very unusual so when I think 00:18:16.919 --> 00:18:22.029 align:start position:0% they are very unusual so when I think about<00:18:17.799> let's<00:18:18.159> say<00:18:19.159> risk<00:18:19.640> of<00:18:20.640> of<00:18:21.080> seeing<00:18:21.640> water 00:18:22.029 --> 00:18:22.039 align:start position:0% about let's say risk of of seeing water 00:18:22.039 --> 00:18:23.549 align:start position:0% about let's say risk of of seeing water rise<00:18:22.520> or 00:18:23.549 --> 00:18:23.559 align:start position:0% rise or 00:18:23.559 --> 00:18:26.909 align:start position:0% rise or temperature<00:18:24.559> these<00:18:24.679> are<00:18:25.039> very<00:18:25.400> rare<00:18:25.919> events 00:18:26.909 --> 00:18:26.919 align:start position:0% temperature these are very rare events 00:18:26.919 --> 00:18:29.750 align:start position:0% temperature these are very rare events so<00:18:27.400> how<00:18:27.679> do<00:18:27.880> you<00:18:28.200> validate<00:18:28.840> this<00:18:29.080> data<00:18:29.640> we 00:18:29.750 --> 00:18:29.760 align:start position:0% so how do you validate this data we 00:18:29.760 --> 00:18:31.470 align:start position:0% so how do you validate this data we don't<00:18:29.960> want<00:18:30.120> to<00:18:30.320> wait<00:18:30.520> until<00:18:30.760> the<00:18:30.880> event<00:18:31.159> takes 00:18:31.470 --> 00:18:31.480 align:start position:0% don't want to wait until the event takes 00:18:31.480 --> 00:18:36.029 align:start position:0% don't want to wait until the event takes place<00:18:32.000> no<00:18:33.000> so<00:18:33.520> that<00:18:33.600> would<00:18:33.760> be<00:18:33.960> one<00:18:34.840> so<00:18:35.200> so<00:18:35.919> when 00:18:36.029 --> 00:18:36.039 align:start position:0% place no so that would be one so so when 00:18:36.039 --> 00:18:37.909 align:start position:0% place no so that would be one so so when you<00:18:36.200> think<00:18:36.400> about<00:18:36.600> it<00:18:36.760> from<00:18:36.960> the<00:18:37.320> perspective 00:18:37.909 --> 00:18:37.919 align:start position:0% you think about it from the perspective 00:18:37.919 --> 00:18:39.830 align:start position:0% you think about it from the perspective of<00:18:38.120> what<00:18:38.240> is<00:18:38.400> the<00:18:38.640> RO<00:18:39.039> of<00:18:39.200> what<00:18:39.320> you're<00:18:39.559> trying 00:18:39.830 --> 00:18:39.840 align:start position:0% of what is the RO of what you're trying 00:18:39.840 --> 00:18:41.310 align:start position:0% of what is the RO of what you're trying to<00:18:40.080> accomplish<00:18:40.559> by<00:18:40.720> providing<00:18:41.080> this 00:18:41.310 --> 00:18:41.320 align:start position:0% to accomplish by providing this 00:18:41.320 --> 00:18:43.870 align:start position:0% to accomplish by providing this information<00:18:42.320> is<00:18:42.440> that<00:18:42.640> we<00:18:42.760> want<00:18:43.200> not<00:18:43.400> a<00:18:43.559> single 00:18:43.870 --> 00:18:43.880 align:start position:0% information is that we want not a single 00:18:43.880 --> 00:18:46.510 align:start position:0% information is that we want not a single one<00:18:44.039> to<00:18:44.200> ever<00:18:44.520> be<00:18:44.880> validated<00:18:45.880> and<00:18:46.120> I<00:18:46.320> I 00:18:46.510 --> 00:18:46.520 align:start position:0% one to ever be validated and I I 00:18:46.520 --> 00:18:49.029 align:start position:0% one to ever be validated and I I actually<00:18:46.799> explain<00:18:47.280> investors<00:18:47.720> all<00:18:47.880> the<00:18:48.080> time 00:18:49.029 --> 00:18:49.039 align:start position:0% actually explain investors all the time 00:18:49.039 --> 00:18:51.549 align:start position:0% actually explain investors all the time this<00:18:49.200> is<00:18:49.480> not<00:18:49.840> a<00:18:50.039> default<00:18:50.480> a<00:18:50.640> default<00:18:51.000> is<00:18:51.120> a 00:18:51.549 --> 00:18:51.559 align:start position:0% this is not a default a default is a 00:18:51.559 --> 00:18:53.830 align:start position:0% this is not a default a default is a tiny<00:18:51.960> event<00:18:52.360> in<00:18:52.600> comparison<00:18:53.159> to<00:18:53.440> what<00:18:53.559> we<00:18:53.679> are 00:18:53.830 --> 00:18:53.840 align:start position:0% tiny event in comparison to what we are 00:18:53.840 --> 00:18:57.149 align:start position:0% tiny event in comparison to what we are measuring<00:18:54.320> on<00:18:54.559> ESG<00:18:55.000> I<00:18:55.120> said<00:18:55.640> find<00:18:56.120> any<00:18:56.440> ESG 00:18:57.149 --> 00:18:57.159 align:start position:0% measuring on ESG I said find any ESG 00:18:57.159 --> 00:18:59.710 align:start position:0% measuring on ESG I said find any ESG that<00:18:57.280> is<00:18:57.600> not<00:18:58.000> dramatically<00:18:58.880> important<00:18:59.600> the 00:18:59.710 --> 00:18:59.720 align:start position:0% that is not dramatically important the 00:18:59.720 --> 00:19:01.470 align:start position:0% that is not dramatically important the other<00:18:59.960> part<00:19:00.159> is<00:19:00.400> is<00:19:00.480> the<00:19:00.679> performance<00:19:01.240> I<00:19:01.320> think 00:19:01.470 --> 00:19:01.480 align:start position:0% other part is is the performance I think 00:19:01.480 --> 00:19:04.430 align:start position:0% other part is is the performance I think is<00:19:01.679> simpler<00:19:02.280> to<00:19:02.520> do<00:19:03.400> but<00:19:03.559> this<00:19:03.760> depends<00:19:04.080> on<00:19:04.280> the 00:19:04.430 --> 00:19:04.440 align:start position:0% is simpler to do but this depends on the 00:19:04.440 --> 00:19:05.789 align:start position:0% is simpler to do but this depends on the objectives<00:19:04.919> for 00:19:05.789 --> 00:19:05.799 align:start position:0% objectives for 00:19:05.799 --> 00:19:08.909 align:start position:0% objectives for example<00:19:06.799> the<00:19:07.000> msci<00:19:07.600> index<00:19:08.000> I<00:19:08.120> think<00:19:08.440> performs 00:19:08.909 --> 00:19:08.919 align:start position:0% example the msci index I think performs 00:19:08.919 --> 00:19:11.270 align:start position:0% example the msci index I think performs really<00:19:09.200> well<00:19:09.440> I<00:19:09.520> mean<00:19:09.919> we<00:19:10.080> have<00:19:10.240> a<00:19:10.440> paper<00:19:10.840> also 00:19:11.270 --> 00:19:11.280 align:start position:0% really well I mean we have a paper also 00:19:11.280 --> 00:19:13.950 align:start position:0% really well I mean we have a paper also on<00:19:11.520> on<00:19:11.840> evaluating<00:19:12.559> the<00:19:12.960> the<00:19:13.320> the<00:19:13.480> stock 00:19:13.950 --> 00:19:13.960 align:start position:0% on on evaluating the the the stock 00:19:13.960 --> 00:19:15.990 align:start position:0% on on evaluating the the the stock return<00:19:14.360> implications<00:19:15.159> of<00:19:15.400> getting<00:19:15.679> a<00:19:15.799> better 00:19:15.990 --> 00:19:16.000 align:start position:0% return implications of getting a better 00:19:16.000 --> 00:19:18.510 align:start position:0% return implications of getting a better score<00:19:16.320> in<00:19:16.480> msci<00:19:17.320> on<00:19:17.520> on<00:19:17.640> the<00:19:17.760> E<00:19:18.000> and<00:19:18.159> the<00:19:18.240> S<00:19:18.400> and 00:19:18.510 --> 00:19:18.520 align:start position:0% score in msci on on the E and the S and 00:19:18.520 --> 00:19:20.350 align:start position:0% score in msci on on the E and the S and the<00:19:18.640> g<00:19:18.840> i<00:19:18.919> mean<00:19:19.159> we<00:19:19.280> it's<00:19:19.400> a<00:19:19.520> new<00:19:19.760> paper<00:19:20.039> that<00:19:20.200> we 00:19:20.350 --> 00:19:20.360 align:start position:0% the g i mean we it's a new paper that we 00:19:20.360 --> 00:19:23.029 align:start position:0% the g i mean we it's a new paper that we have<00:19:20.840> you<00:19:20.960> know<00:19:21.240> clearly<00:19:21.880> you<00:19:22.240> provide<00:19:22.919> you 00:19:23.029 --> 00:19:23.039 align:start position:0% have you know clearly you provide you 00:19:23.039 --> 00:19:25.909 align:start position:0% have you know clearly you provide you know<00:19:23.360> Alpha<00:19:24.360> in<00:19:24.520> in<00:19:24.600> our<00:19:24.840> regressions<00:19:25.559> very 00:19:25.909 --> 00:19:25.919 align:start position:0% know Alpha in in our regressions very 00:19:25.919 --> 00:19:27.830 align:start position:0% know Alpha in in our regressions very clearly<00:19:26.440> and<00:19:26.559> we<00:19:26.720> correct<00:19:27.039> for<00:19:27.280> noise<00:19:27.679> we 00:19:27.830 --> 00:19:27.840 align:start position:0% clearly and we correct for noise we 00:19:27.840 --> 00:19:29.870 align:start position:0% clearly and we correct for noise we correct<00:19:28.120> for<00:19:28.360> the<00:19:28.480> things<00:19:29.000> that<00:19:29.360> probably 00:19:29.870 --> 00:19:29.880 align:start position:0% correct for the things that probably 00:19:29.880 --> 00:19:32.990 align:start position:0% correct for the things that probably most<00:19:30.159> practitioners<00:19:30.720> don't<00:19:31.080> do<00:19:32.080> but<00:19:32.240> we<00:19:32.440> find 00:19:32.990 --> 00:19:33.000 align:start position:0% most practitioners don't do but we find 00:19:33.000 --> 00:19:35.350 align:start position:0% most practitioners don't do but we find very<00:19:33.240> significant<00:19:33.840> effects<00:19:34.360> and<00:19:34.840> but<00:19:35.000> not<00:19:35.200> all 00:19:35.350 --> 00:19:35.360 align:start position:0% very significant effects and but not all 00:19:35.360 --> 00:19:38.990 align:start position:0% very significant effects and but not all the<00:19:35.480> rating<00:19:35.880> agencies<00:19:36.360> are<00:19:37.360> the<00:19:37.559> same<00:19:38.200> so<00:19:38.840> the 00:19:38.990 --> 00:19:39.000 align:start position:0% the rating agencies are the same so the 00:19:39.000 --> 00:19:42.070 align:start position:0% the rating agencies are the same so the second<00:19:39.360> question<00:19:39.640> I<00:19:39.760> think<00:19:39.919> is<00:19:40.559> simpler<00:19:41.559> um 00:19:42.070 --> 00:19:42.080 align:start position:0% second question I think is simpler um 00:19:42.080 --> 00:19:43.870 align:start position:0% second question I think is simpler um does<00:19:42.240> it<00:19:42.480> matter<00:19:42.760> for<00:19:43.000> my<00:19:43.200> portfolio 00:19:43.870 --> 00:19:43.880 align:start position:0% does it matter for my portfolio 00:19:43.880 --> 00:19:45.990 align:start position:0% does it matter for my portfolio decisions<00:19:44.440> I<00:19:44.520> think<00:19:44.720> the<00:19:44.840> answer<00:19:45.240> for<00:19:45.520> that 00:19:45.990 --> 00:19:46.000 align:start position:0% decisions I think the answer for that 00:19:46.000 --> 00:19:49.870 align:start position:0% decisions I think the answer for that clearly<00:19:46.440> is<00:19:46.760> yes<00:19:47.559> okay<00:19:48.240> but<00:19:48.559> you<00:19:48.720> know<00:19:49.640> should 00:19:49.870 --> 00:19:49.880 align:start position:0% clearly is yes okay but you know should 00:19:49.880 --> 00:19:51.549 align:start position:0% clearly is yes okay but you know should I<00:19:50.120> validate<00:19:50.600> the<00:19:50.760> quality<00:19:51.080> of<00:19:51.159> the 00:19:51.549 --> 00:19:51.559 align:start position:0% I validate the quality of the 00:19:51.559 --> 00:19:55.789 align:start position:0% I validate the quality of the information<00:19:52.559> uh<00:19:53.000> giving<00:19:53.679> humankind<00:19:54.679> uh<00:19:55.159> uh 00:19:55.789 --> 00:19:55.799 align:start position:0% information uh giving humankind uh uh 00:19:55.799 --> 00:19:57.950 align:start position:0% information uh giving humankind uh uh kind<00:19:56.000> of<00:19:56.159> shocks<00:19:57.080> I<00:19:57.200> I<00:19:57.360> tell<00:19:57.559> people<00:19:57.760> no<00:19:57.880> I 00:19:57.950 --> 00:19:57.960 align:start position:0% kind of shocks I I tell people no I 00:19:57.960 --> 00:20:00.230 align:start position:0% kind of shocks I I tell people no I don't<00:19:58.080> want<00:19:58.200> to<00:19:58.320> validate<00:19:58.880> anything<00:19:59.840> so<00:20:00.039> I 00:20:00.230 --> 00:20:00.240 align:start position:0% don't want to validate anything so I 00:20:00.240 --> 00:20:01.950 align:start position:0% don't want to validate anything so I really<00:20:00.440> hope<00:20:00.640> that<00:20:00.760> we're<00:20:01.080> effective<00:20:01.679> in 00:20:01.950 --> 00:20:01.960 align:start position:0% really hope that we're effective in 00:20:01.960 --> 00:20:04.390 align:start position:0% really hope that we're effective in stopping<00:20:02.520> this<00:20:02.720> Behavior<00:20:03.520> yeah<00:20:03.799> no<00:20:03.960> no<00:20:04.240> that 00:20:04.390 --> 00:20:04.400 align:start position:0% stopping this Behavior yeah no no that 00:20:04.400 --> 00:20:06.510 align:start position:0% stopping this Behavior yeah no no that that's<00:20:04.520> a<00:20:04.720> philosophical<00:20:05.600> problem<00:20:06.000> right<00:20:06.280> so 00:20:06.510 --> 00:20:06.520 align:start position:0% that's a philosophical problem right so 00:20:06.520 --> 00:20:08.549 align:start position:0% that's a philosophical problem right so in<00:20:06.720> terms<00:20:07.039> of<00:20:07.400> trying<00:20:07.640> to<00:20:07.799> measure<00:20:08.200> something 00:20:08.549 --> 00:20:08.559 align:start position:0% in terms of trying to measure something 00:20:08.559 --> 00:20:10.830 align:start position:0% in terms of trying to measure something that<00:20:08.720> you<00:20:08.960> then<00:20:09.760> either<00:20:09.960> don't<00:20:10.480> hope<00:20:10.640> to 00:20:10.830 --> 00:20:10.840 align:start position:0% that you then either don't hope to 00:20:10.840 --> 00:20:13.470 align:start position:0% that you then either don't hope to happen<00:20:11.240> or<00:20:11.600> there<00:20:11.760> is<00:20:11.960> no<00:20:12.360> actual<00:20:13.000> practical 00:20:13.470 --> 00:20:13.480 align:start position:0% happen or there is no actual practical 00:20:13.480 --> 00:20:16.830 align:start position:0% happen or there is no actual practical way<00:20:13.679> to<00:20:14.320> to<00:20:14.559> to<00:20:14.720> measure<00:20:15.000> it<00:20:15.600> uh<00:20:15.840> you<00:20:16.120> in<00:20:16.240> a<00:20:16.600> very 00:20:16.830 --> 00:20:16.840 align:start position:0% way to to to measure it uh you in a very 00:20:16.840 --> 00:20:20.630 align:start position:0% way to to to measure it uh you in a very valid<00:20:17.280> way<00:20:18.120> um<00:20:18.760> so<00:20:19.280> I<00:20:19.520> um<00:20:19.880> I<00:20:20.000> wanted<00:20:20.200> to<00:20:20.400> kind<00:20:20.520> of 00:20:20.630 --> 00:20:20.640 align:start position:0% valid way um so I um I wanted to kind of 00:20:20.640 --> 00:20:21.750 align:start position:0% valid way um so I um I wanted to kind of get<00:20:20.799> to<00:20:20.960> a<00:20:21.080> little<00:20:21.240> bit<00:20:21.400> of<00:20:21.600> the 00:20:21.750 --> 00:20:21.760 align:start position:0% get to a little bit of the 00:20:21.760 --> 00:20:23.789 align:start position:0% get to a little bit of the recommendations<00:20:22.480> that<00:20:22.679> you<00:20:22.919> give<00:20:23.360> in<00:20:23.480> your 00:20:23.789 --> 00:20:23.799 align:start position:0% recommendations that you give in your 00:20:23.799 --> 00:20:25.909 align:start position:0% recommendations that you give in your paper<00:20:24.200> I<00:20:24.240> mean<00:20:24.440> one<00:20:24.559> of<00:20:24.720> them<00:20:24.919> you<00:20:25.159> recommended 00:20:25.909 --> 00:20:25.919 align:start position:0% paper I mean one of them you recommended 00:20:25.919 --> 00:20:29.390 align:start position:0% paper I mean one of them you recommended is<00:20:26.679> um<00:20:26.960> to<00:20:27.840> increase<00:20:28.200> the<00:20:28.360> trans<00:20:28.799> Arcy<00:20:29.280> right 00:20:29.390 --> 00:20:29.400 align:start position:0% is um to increase the trans Arcy right 00:20:29.400 --> 00:20:31.710 align:start position:0% is um to increase the trans Arcy right so<00:20:29.559> it's<00:20:29.720> calling<00:20:29.960> for<00:20:30.120> greater<00:20:30.720> transparency 00:20:31.710 --> 00:20:31.720 align:start position:0% so it's calling for greater transparency 00:20:31.720 --> 00:20:34.029 align:start position:0% so it's calling for greater transparency um<00:20:31.840> from<00:20:32.039> USG<00:20:32.440> ratings<00:20:32.840> providers<00:20:33.799> and<00:20:33.960> I 00:20:34.029 --> 00:20:34.039 align:start position:0% um from USG ratings providers and I 00:20:34.039 --> 00:20:35.830 align:start position:0% um from USG ratings providers and I think<00:20:34.320> that's<00:20:34.600> obviously<00:20:35.000> one<00:20:35.320> that<00:20:35.559> that<00:20:35.679> we 00:20:35.830 --> 00:20:35.840 align:start position:0% think that's obviously one that that we 00:20:35.840 --> 00:20:37.870 align:start position:0% think that's obviously one that that we take<00:20:36.039> to<00:20:36.280> heart<00:20:36.679> because<00:20:37.240> we<00:20:37.480> certainly 00:20:37.870 --> 00:20:37.880 align:start position:0% take to heart because we certainly 00:20:37.880 --> 00:20:40.029 align:start position:0% take to heart because we certainly publish<00:20:38.200> our<00:20:38.320> ratings<00:20:38.720> methodology<00:20:39.679> but<00:20:39.880> I 00:20:40.029 --> 00:20:40.039 align:start position:0% publish our ratings methodology but I 00:20:40.039 --> 00:20:42.350 align:start position:0% publish our ratings methodology but I guess<00:20:40.360> one<00:20:40.640> issue<00:20:40.960> that<00:20:41.080> I<00:20:41.280> have<00:20:41.919> um<00:20:42.080> and<00:20:42.200> i' 00:20:42.350 --> 00:20:42.360 align:start position:0% guess one issue that I have um and i' 00:20:42.360 --> 00:20:44.870 align:start position:0% guess one issue that I have um and i' love<00:20:42.679> to<00:20:42.960> your<00:20:43.159> perspective<00:20:43.640> on<00:20:43.840> this<00:20:44.080> is<00:20:44.280> that 00:20:44.870 --> 00:20:44.880 align:start position:0% love to your perspective on this is that 00:20:44.880 --> 00:20:47.149 align:start position:0% love to your perspective on this is that you<00:20:45.000> can<00:20:45.240> make<00:20:45.600> all<00:20:45.799> of<00:20:46.080> this<00:20:46.520> um<00:20:46.840> all<00:20:47.039> the 00:20:47.149 --> 00:20:47.159 align:start position:0% you can make all of this um all the 00:20:47.159 --> 00:20:49.710 align:start position:0% you can make all of this um all the methodology<00:20:47.840> transparent<00:20:48.600> and<00:20:48.960> and<00:20:49.240> and<00:20:49.559> and 00:20:49.710 --> 00:20:49.720 align:start position:0% methodology transparent and and and and 00:20:49.720 --> 00:20:51.950 align:start position:0% methodology transparent and and and and actually<00:20:49.960> put<00:20:50.120> it<00:20:50.280> out<00:20:50.520> there<00:20:51.159> but<00:20:51.480> I<00:20:51.600> think 00:20:51.950 --> 00:20:51.960 align:start position:0% actually put it out there but I think 00:20:51.960 --> 00:20:54.990 align:start position:0% actually put it out there but I think that<00:20:52.320> there're<00:20:52.679> still<00:20:52.960> quite<00:20:53.280> complex<00:20:54.280> so 00:20:54.990 --> 00:20:55.000 align:start position:0% that there're still quite complex so 00:20:55.000 --> 00:20:56.669 align:start position:0% that there're still quite complex so many<00:20:55.320> people<00:20:55.559> just<00:20:55.720> don't<00:20:55.880> want<00:20:56.000> to<00:20:56.200> deal<00:20:56.520> with 00:20:56.669 --> 00:20:56.679 align:start position:0% many people just don't want to deal with 00:20:56.679 --> 00:20:59.070 align:start position:0% many people just don't want to deal with the<00:20:56.840> complexity<00:20:57.520> so<00:20:57.760> it's<00:20:58.039> easier<00:20:58.679> to<00:20:58.880> say 00:20:59.070 --> 00:20:59.080 align:start position:0% the complexity so it's easier to say 00:20:59.080 --> 00:21:00.870 align:start position:0% the complexity so it's easier to say that<00:20:59.200> it's<00:20:59.360> a<00:20:59.520> black<00:20:59.799> box<00:21:00.159> but<00:21:00.440> you<00:21:00.559> know<00:21:00.720> the 00:21:00.870 --> 00:21:00.880 align:start position:0% that it's a black box but you know the 00:21:00.880 --> 00:21:02.789 align:start position:0% that it's a black box but you know the box<00:21:01.080> is<00:21:01.200> a<00:21:01.360> clear<00:21:01.760> box<00:21:02.080> it's<00:21:02.280> just<00:21:02.440> got<00:21:02.600> a<00:21:02.679> lot 00:21:02.789 --> 00:21:02.799 align:start position:0% box is a clear box it's just got a lot 00:21:02.799 --> 00:21:04.510 align:start position:0% box is a clear box it's just got a lot of<00:21:02.960> different<00:21:03.240> stuff<00:21:03.440> in<00:21:03.559> it<00:21:03.880> that<00:21:04.240> most 00:21:04.510 --> 00:21:04.520 align:start position:0% of different stuff in it that most 00:21:04.520 --> 00:21:05.950 align:start position:0% of different stuff in it that most normal<00:21:04.840> people<00:21:05.080> aren't<00:21:05.320> going<00:21:05.480> to<00:21:05.559> be<00:21:05.679> able<00:21:05.840> to 00:21:05.950 --> 00:21:05.960 align:start position:0% normal people aren't going to be able to 00:21:05.960 --> 00:21:07.990 align:start position:0% normal people aren't going to be able to unpack<00:21:06.360> and<00:21:06.760> understand<00:21:06.919> how<00:21:07.039> it<00:21:07.159> works<00:21:07.480> so 00:21:07.990 --> 00:21:08.000 align:start position:0% unpack and understand how it works so 00:21:08.000 --> 00:21:09.630 align:start position:0% unpack and understand how it works so how<00:21:08.200> how<00:21:08.320> do<00:21:08.480> we<00:21:08.679> think<00:21:08.880> about<00:21:09.159> that<00:21:09.280> in<00:21:09.400> terms 00:21:09.630 --> 00:21:09.640 align:start position:0% how how do we think about that in terms 00:21:09.640 --> 00:21:12.230 align:start position:0% how how do we think about that in terms of<00:21:09.799> transparency<00:21:10.760> so<00:21:10.960> there's<00:21:11.240> one<00:21:11.720> source<00:21:12.039> of 00:21:12.230 --> 00:21:12.240 align:start position:0% of transparency so there's one source of 00:21:12.240 --> 00:21:13.789 align:start position:0% of transparency so there's one source of transparency<00:21:12.840> that<00:21:12.960> you<00:21:13.080> did<00:21:13.279> not<00:21:13.480> mention 00:21:13.789 --> 00:21:13.799 align:start position:0% transparency that you did not mention 00:21:13.799 --> 00:21:16.070 align:start position:0% transparency that you did not mention that<00:21:13.960> I<00:21:14.039> would<00:21:14.200> like<00:21:14.360> to<00:21:14.600> add<00:21:14.919> to<00:21:15.159> these<00:21:15.880> which 00:21:16.070 --> 00:21:16.080 align:start position:0% that I would like to add to these which 00:21:16.080 --> 00:21:19.950 align:start position:0% that I would like to add to these which is<00:21:17.039> that<00:21:17.279> you<00:21:17.799> specify<00:21:18.559> in<00:21:18.760> each<00:21:19.400> naturally 00:21:19.950 --> 00:21:19.960 align:start position:0% is that you specify in each naturally 00:21:19.960 --> 00:21:22.110 align:start position:0% is that you specify in each naturally defined<00:21:20.520> category<00:21:21.320> what<00:21:21.480> were<00:21:21.720> you 00:21:22.110 --> 00:21:22.120 align:start position:0% defined category what were you 00:21:22.120 --> 00:21:24.110 align:start position:0% defined category what were you pretending<00:21:22.720> on<00:21:23.000> to<00:21:23.159> measure<00:21:23.760> what<00:21:23.919> what<00:21:24.000> are 00:21:24.110 --> 00:21:24.120 align:start position:0% pretending on to measure what what are 00:21:24.120 --> 00:21:25.789 align:start position:0% pretending on to measure what what are you<00:21:24.360> trying<00:21:24.600> to<00:21:24.760> measure<00:21:25.080> so<00:21:25.279> that<00:21:25.480> that<00:21:25.640> part 00:21:25.789 --> 00:21:25.799 align:start position:0% you trying to measure so that that part 00:21:25.799 --> 00:21:27.630 align:start position:0% you trying to measure so that that part of<00:21:25.919> the<00:21:26.039> transparency<00:21:26.960> I<00:21:27.000> mean<00:21:27.159> you<00:21:27.320> make<00:21:27.480> it 00:21:27.630 --> 00:21:27.640 align:start position:0% of the transparency I mean you make it 00:21:27.640 --> 00:21:29.390 align:start position:0% of the transparency I mean you make it very<00:21:27.840> clear<00:21:28.120> but<00:21:28.320> that's<00:21:28.679> not<00:21:28.840> true<00:21:29.080> in<00:21:29.200> all 00:21:29.390 --> 00:21:29.400 align:start position:0% very clear but that's not true in all 00:21:29.400 --> 00:21:31.510 align:start position:0% very clear but that's not true in all the<00:21:29.679> rating<00:21:30.080> agencies<00:21:30.640> and<00:21:30.840> so<00:21:31.159> we<00:21:31.360> we 00:21:31.510 --> 00:21:31.520 align:start position:0% the rating agencies and so we we 00:21:31.520 --> 00:21:33.510 align:start position:0% the rating agencies and so we we actually<00:21:31.840> found<00:21:32.679> some<00:21:32.919> of<00:21:33.080> them<00:21:33.240> that<00:21:33.400> they 00:21:33.510 --> 00:21:33.520 align:start position:0% actually found some of them that they 00:21:33.520 --> 00:21:35.149 align:start position:0% actually found some of them that they didn't<00:21:33.799> know<00:21:34.080> exactly<00:21:34.600> what<00:21:34.760> was<00:21:34.960> their 00:21:35.149 --> 00:21:35.159 align:start position:0% didn't know exactly what was their 00:21:35.159 --> 00:21:36.710 align:start position:0% didn't know exactly what was their measure<00:21:35.679> they<00:21:35.799> knew<00:21:35.960> it<00:21:36.039> was<00:21:36.200> something<00:21:36.440> about 00:21:36.710 --> 00:21:36.720 align:start position:0% measure they knew it was something about 00:21:36.720 --> 00:21:38.630 align:start position:0% measure they knew it was something about Labor<00:21:37.400> I<00:21:37.520> said<00:21:37.760> well<00:21:37.919> you<00:21:38.039> know<00:21:38.200> but<00:21:38.320> this<00:21:38.440> is 00:21:38.630 --> 00:21:38.640 align:start position:0% Labor I said well you know but this is 00:21:38.640 --> 00:21:40.630 align:start position:0% Labor I said well you know but this is you<00:21:38.720> know<00:21:39.039> risk<00:21:39.440> or<00:21:39.679> this<00:21:39.840> is<00:21:40.039> you<00:21:40.200> know<00:21:40.480> the 00:21:40.630 --> 00:21:40.640 align:start position:0% you know risk or this is you know the 00:21:40.640 --> 00:21:41.350 align:start position:0% you know risk or this is you know the the 00:21:41.350 --> 00:21:41.360 align:start position:0% the 00:21:41.360 --> 00:21:44.549 align:start position:0% the violation<00:21:42.360> they<00:21:42.520> didn't<00:21:42.799> know<00:21:43.440> so<00:21:43.679> somebody 00:21:44.549 --> 00:21:44.559 align:start position:0% violation they didn't know so somebody 00:21:44.559 --> 00:21:46.710 align:start position:0% violation they didn't know so somebody collected<00:21:44.960> the<00:21:45.159> data<00:21:45.440> earlier<00:21:45.919> and<00:21:46.080> then<00:21:46.600> you 00:21:46.710 --> 00:21:46.720 align:start position:0% collected the data earlier and then you 00:21:46.720 --> 00:21:49.190 align:start position:0% collected the data earlier and then you know<00:21:47.159> Legacy<00:21:47.799> they<00:21:47.960> keep<00:21:48.240> the<00:21:48.360> index<00:21:48.840> but<00:21:49.000> it's 00:21:49.190 --> 00:21:49.200 align:start position:0% know Legacy they keep the index but it's 00:21:49.200 --> 00:21:51.190 align:start position:0% know Legacy they keep the index but it's not<00:21:49.440> clear<00:21:49.760> that<00:21:49.960> what<00:21:50.120> they<00:21:50.240> do<00:21:50.840> I<00:21:50.919> think<00:21:51.039> the 00:21:51.190 --> 00:21:51.200 align:start position:0% not clear that what they do I think the 00:21:51.200 --> 00:21:53.990 align:start position:0% not clear that what they do I think the transparency<00:21:51.840> is<00:21:52.120> is<00:21:52.279> so<00:21:52.840> such<00:21:53.159> that<00:21:53.480> a<00:21:53.679> each 00:21:53.990 --> 00:21:54.000 align:start position:0% transparency is is so such that a each 00:21:54.000 --> 00:21:56.510 align:start position:0% transparency is is so such that a each rating<00:21:54.480> agency<00:21:55.039> can<00:21:55.240> learn<00:21:55.559> from<00:21:55.760> each<00:21:55.919> other 00:21:56.510 --> 00:21:56.520 align:start position:0% rating agency can learn from each other 00:21:56.520 --> 00:21:58.070 align:start position:0% rating agency can learn from each other that<00:21:56.760> that<00:21:56.880> does<00:21:57.120> make<00:21:57.320> sense<00:21:57.679> because<00:21:58.000> I 00:21:58.070 --> 00:21:58.080 align:start position:0% that that does make sense because I 00:21:58.080 --> 00:21:59.430 align:start position:0% that that does make sense because I hadn't<00:21:58.320> real<00:21:58.600> realized<00:21:58.880> that<00:21:59.000> when<00:21:59.080> you<00:21:59.200> call 00:21:59.430 --> 00:21:59.440 align:start position:0% hadn't real realized that when you call 00:21:59.440 --> 00:22:01.710 align:start position:0% hadn't real realized that when you call for<00:21:59.600> transparency<00:22:00.159> was<00:22:00.360> more<00:22:00.600> about<00:22:01.279> learning 00:22:01.710 --> 00:22:01.720 align:start position:0% for transparency was more about learning 00:22:01.720 --> 00:22:03.830 align:start position:0% for transparency was more about learning from<00:22:01.919> each<00:22:02.080> other<00:22:02.440> as<00:22:02.600> Raiders<00:22:03.120> as<00:22:03.240> opposed<00:22:03.600> to 00:22:03.830 --> 00:22:03.840 align:start position:0% from each other as Raiders as opposed to 00:22:03.840 --> 00:22:05.430 align:start position:0% from each other as Raiders as opposed to for<00:22:04.039> the<00:22:04.159> investors<00:22:04.679> because<00:22:04.919> of<00:22:05.080> course<00:22:05.320> I 00:22:05.430 --> 00:22:05.440 align:start position:0% for the investors because of course I 00:22:05.440 --> 00:22:08.549 align:start position:0% for the investors because of course I think<00:22:05.960> the<00:22:06.159> buyers<00:22:07.080> of<00:22:07.320> the<00:22:07.440> ratings<00:22:08.240> um 00:22:08.549 --> 00:22:08.559 align:start position:0% think the buyers of the ratings um 00:22:08.559 --> 00:22:10.029 align:start position:0% think the buyers of the ratings um themselves<00:22:08.880> do<00:22:09.080> have<00:22:09.320> access<00:22:09.600> and<00:22:09.799> full 00:22:10.029 --> 00:22:10.039 align:start position:0% themselves do have access and full 00:22:10.039 --> 00:22:12.950 align:start position:0% themselves do have access and full transparency<00:22:10.760> to<00:22:11.120> to<00:22:11.440> to<00:22:11.600> the<00:22:11.760> methodology<00:22:12.400> so 00:22:12.950 --> 00:22:12.960 align:start position:0% transparency to to to the methodology so 00:22:12.960 --> 00:22:15.510 align:start position:0% transparency to to to the methodology so that's<00:22:13.080> a<00:22:13.240> really<00:22:13.440> good<00:22:13.919> clarification<00:22:14.919> um<00:22:15.080> so 00:22:15.510 --> 00:22:15.520 align:start position:0% that's a really good clarification um so 00:22:15.520 --> 00:22:18.830 align:start position:0% that's a really good clarification um so I'm<00:22:15.720> gonna<00:22:16.080> ask<00:22:16.240> you<00:22:16.440> one<00:22:16.799> final<00:22:17.400> question<00:22:18.400> um 00:22:18.830 --> 00:22:18.840 align:start position:0% I'm gonna ask you one final question um 00:22:18.840 --> 00:22:21.430 align:start position:0% I'm gonna ask you one final question um and<00:22:19.240> this<00:22:19.360> is<00:22:19.600> my<00:22:19.799> desert<00:22:20.159> island<00:22:20.600> question<00:22:21.159> so 00:22:21.430 --> 00:22:21.440 align:start position:0% and this is my desert island question so 00:22:21.440 --> 00:22:23.269 align:start position:0% and this is my desert island question so you're<00:22:21.600> on<00:22:21.760> a<00:22:21.919> desert<00:22:22.240> island<00:22:22.880> and<00:22:23.000> you<00:22:23.120> can 00:22:23.269 --> 00:22:23.279 align:start position:0% you're on a desert island and you can 00:22:23.279 --> 00:22:25.310 align:start position:0% you're on a desert island and you can only<00:22:23.559> have<00:22:23.799> one<00:22:24.159> paper<00:22:24.520> on<00:22:24.720> sustainable 00:22:25.310 --> 00:22:25.320 align:start position:0% only have one paper on sustainable 00:22:25.320 --> 00:22:27.470 align:start position:0% only have one paper on sustainable investing<00:22:26.039> other<00:22:26.279> than<00:22:26.440> the<00:22:26.559> ones<00:22:26.880> that<00:22:27.120> you 00:22:27.470 --> 00:22:27.480 align:start position:0% investing other than the ones that you 00:22:27.480 --> 00:22:29.149 align:start position:0% investing other than the ones that you have<00:22:27.720> actually<00:22:28.000> authored 00:22:29.149 --> 00:22:29.159 align:start position:0% have actually authored 00:22:29.159 --> 00:22:31.190 align:start position:0% have actually authored what<00:22:29.279> would<00:22:29.440> it<00:22:29.640> be<00:22:30.240> okay<00:22:30.520> and<00:22:30.720> and<00:22:30.880> you<00:22:31.000> can 00:22:31.190 --> 00:22:31.200 align:start position:0% what would it be okay and and you can 00:22:31.200 --> 00:22:33.710 align:start position:0% what would it be okay and and you can either<00:22:31.440> choose<00:22:31.799> one<00:22:32.080> that<00:22:32.240> you<00:22:32.440> want<00:22:33.279> because 00:22:33.710 --> 00:22:33.720 align:start position:0% either choose one that you want because 00:22:33.720 --> 00:22:35.310 align:start position:0% either choose one that you want because it's<00:22:33.919> just<00:22:34.080> so<00:22:34.279> intellectually<00:22:34.919> interesting 00:22:35.310 --> 00:22:35.320 align:start position:0% it's just so intellectually interesting 00:22:35.320 --> 00:22:37.470 align:start position:0% it's just so intellectually interesting to<00:22:35.480> you<00:22:35.600> and<00:22:35.760> close<00:22:35.960> to<00:22:36.080> your<00:22:36.240> heart<00:22:37.000> or<00:22:37.279> the 00:22:37.470 --> 00:22:37.480 align:start position:0% to you and close to your heart or the 00:22:37.480 --> 00:22:39.149 align:start position:0% to you and close to your heart or the opposite<00:22:37.960> which<00:22:38.080> is<00:22:38.279> that<00:22:38.480> it's<00:22:38.600> one<00:22:38.799> you'd<00:22:38.960> be 00:22:39.149 --> 00:22:39.159 align:start position:0% opposite which is that it's one you'd be 00:22:39.159 --> 00:22:41.430 align:start position:0% opposite which is that it's one you'd be really<00:22:39.400> happy<00:22:39.640> to<00:22:39.799> use<00:22:40.039> as<00:22:40.159> a<00:22:40.279> fire<00:22:40.960> to<00:22:41.320> you 00:22:41.430 --> 00:22:41.440 align:start position:0% really happy to use as a fire to you 00:22:41.440 --> 00:22:43.789 align:start position:0% really happy to use as a fire to you know<00:22:41.679> on<00:22:41.840> your<00:22:42.080> desert<00:22:42.520> island<00:22:43.279> I<00:22:43.480> I<00:22:43.640> I 00:22:43.789 --> 00:22:43.799 align:start position:0% know on your desert island I I I 00:22:43.799 --> 00:22:46.909 align:start position:0% know on your desert island I I I actually<00:22:44.240> have<00:22:44.919> I<00:22:45.039> cannot<00:22:45.480> select<00:22:46.200> uh<00:22:46.600> on<00:22:46.760> the 00:22:46.909 --> 00:22:46.919 align:start position:0% actually have I cannot select uh on the 00:22:46.919 --> 00:22:50.190 align:start position:0% actually have I cannot select uh on the second<00:22:47.279> one<00:22:47.440> on<00:22:47.559> the<00:22:47.679> burning<00:22:48.080> I<00:22:48.200> have<00:22:48.400> like 00:22:50.190 --> 00:22:50.200 align:start position:0% second one on the burning I have like 00:22:50.200 --> 00:22:55.710 align:start position:0% second one on the burning I have like 2,000<00:22:51.200> burn<00:22:51.440> all<00:22:51.600> of<00:22:51.919> them<00:22:52.919> no<00:22:53.679> no<00:22:54.159> um<00:22:55.039> I<00:22:55.320> I<00:22:55.520> I 00:22:55.710 --> 00:22:55.720 align:start position:0% 2,000 burn all of them no no um I I I 00:22:55.720 --> 00:22:59.190 align:start position:0% 2,000 burn all of them no no um I I I like<00:22:56.480> the<00:22:56.640> shua<00:22:57.200> hman<00:22:58.200> paper<00:22:58.679> a<00:22:58.760> lot<00:22:58.919> they<00:22:59.039> went 00:22:59.190 --> 00:22:59.200 align:start position:0% like the shua hman paper a lot they went 00:22:59.200 --> 00:23:01.430 align:start position:0% like the shua hman paper a lot they went on<00:22:59.440> engagement<00:23:00.200> this<00:23:00.279> is<00:23:00.400> a<00:23:00.559> paper<00:23:00.960> that<00:23:01.240> that 00:23:01.430 --> 00:23:01.440 align:start position:0% on engagement this is a paper that that 00:23:01.440 --> 00:23:04.909 align:start position:0% on engagement this is a paper that that talks<00:23:01.799> about<00:23:02.440> um<00:23:03.360> this<00:23:03.559> notion<00:23:03.919> of<00:23:04.200> exclusion 00:23:04.909 --> 00:23:04.919 align:start position:0% talks about um this notion of exclusion 00:23:04.919 --> 00:23:06.909 align:start position:0% talks about um this notion of exclusion so<00:23:05.279> I<00:23:05.480> I<00:23:05.600> don't<00:23:05.840> want<00:23:06.000> to<00:23:06.200> invest<00:23:06.559> I<00:23:06.679> want<00:23:06.840> to 00:23:06.909 --> 00:23:06.919 align:start position:0% so I I don't want to invest I want to 00:23:06.919 --> 00:23:08.789 align:start position:0% so I I don't want to invest I want to sell<00:23:07.159> the<00:23:07.320> stocks<00:23:07.640> of<00:23:07.799> the<00:23:07.880> brown<00:23:08.200> firms<00:23:08.600> for 00:23:08.789 --> 00:23:08.799 align:start position:0% sell the stocks of the brown firms for 00:23:08.799 --> 00:23:11.029 align:start position:0% sell the stocks of the brown firms for example<00:23:09.799> and<00:23:09.960> that<00:23:10.120> that<00:23:10.320> actually<00:23:10.720> might 00:23:11.029 --> 00:23:11.039 align:start position:0% example and that that actually might 00:23:11.039 --> 00:23:13.549 align:start position:0% example and that that actually might produce<00:23:11.480> more<00:23:11.799> pollution<00:23:12.320> not<00:23:12.559> less<00:23:13.320> that's 00:23:13.549 --> 00:23:13.559 align:start position:0% produce more pollution not less that's 00:23:13.559 --> 00:23:15.830 align:start position:0% produce more pollution not less that's fantastic<00:23:14.159> thank<00:23:14.320> you<00:23:14.520> so<00:23:14.720> much<00:23:15.080> I<00:23:15.320> I<00:23:15.480> really 00:23:15.830 --> 00:23:15.840 align:start position:0% fantastic thank you so much I I really 00:23:15.840 --> 00:23:18.230 align:start position:0% fantastic thank you so much I I really really<00:23:16.120> enjoyed<00:23:16.480> our<00:23:16.960> conversation<00:23:17.960> well 00:23:18.230 --> 00:23:18.240 align:start position:0% really enjoyed our conversation well 00:23:18.240 --> 00:23:20.909 align:start position:0% really enjoyed our conversation well same<00:23:18.520> here<00:23:18.840> I<00:23:18.960> love<00:23:19.240> it<00:23:19.440> so<00:23:19.799> uh<00:23:20.159> we'll<00:23:20.799> we 00:23:20.909 --> 00:23:20.919 align:start position:0% same here I love it so uh we'll we 00:23:20.919 --> 00:23:22.630 align:start position:0% same here I love it so uh we'll we definitely<00:23:21.159> have<00:23:21.240> you<00:23:21.520> back<00:23:22.000> for<00:23:22.159> the<00:23:22.279> follow 00:23:22.630 --> 00:23:22.640 align:start position:0% definitely have you back for the follow 00:23:22.640 --> 00:23:24.029 align:start position:0% definitely have you back for the follow up<00:23:22.919> if<00:23:23.039> you're<00:23:23.240> if<00:23:23.320> you're<00:23:23.480> updating<00:23:23.919> the 00:23:24.029 --> 00:23:24.039 align:start position:0% up if you're if you're updating the 00:23:24.039 --> 00:23:25.990 align:start position:0% up if you're if you're updating the paper<00:23:24.360> at<00:23:24.559> the<00:23:24.799> uh<00:23:25.080> at<00:23:25.159> the<00:23:25.279> end<00:23:25.559> you<00:23:25.679> will<00:23:25.840> be 00:23:25.990 --> 00:23:26.000 align:start position:0% paper at the uh at the end you will be 00:23:26.000 --> 00:23:29.190 align:start position:0% paper at the uh at the end you will be the<00:23:26.120> first<00:23:26.400> one<00:23:26.559> I'll<00:23:26.760> send<00:23:27.000> it 00:23:29.190 --> 00:23:29.200 align:start position:0% the first one I'll send it 00:23:29.200 --> 00:23:31.510 align:start position:0% the first one I'll send it great<00:23:30.200> really<00:23:30.480> looking<00:23:30.760> forward<00:23:31.039> to<00:23:31.200> it<00:23:31.360> thank 00:23:31.510 --> 00:23:31.520 align:start position:0% great really looking forward to it thank 00:23:31.520 --> 00:23:32.630 align:start position:0% great really looking forward to it thank you<00:23:31.720> thank<00:23:31.840> you<00:23:31.960> thank<00:23:32.080> you<00:23:32.159> so<00:23:32.279> much<00:23:32.400> for<00:23:32.559> the 00:23:32.630 --> 00:23:32.640 align:start position:0% you thank you thank you so much for the 00:23:32.640 --> 00:23:34.190 align:start position:0% you thank you thank you so much for the chance<00:23:32.880> to<00:23:33.120> speak<00:23:33.440> and<00:23:33.600> thank<00:23:33.720> you<00:23:33.840> to<00:23:34.039> your 00:23:34.190 --> 00:23:34.200 align:start position:0% chance to speak and thank you to your 00:23:34.200 --> 00:23:37.760 align:start position:0% chance to speak and thank you to your audience<00:23:34.640> as<00:23:34.760> well