[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.05,0:00:04.28,Default,,0000,0000,0000,,We love to engage\Non the issues of the day.
Dialogue: 0,0:00:04.30,0:00:05.46,Default,,0000,0000,0000,,We love it.
Dialogue: 0,0:00:05.48,0:00:06.94,Default,,0000,0000,0000,,We comment on the news,
Dialogue: 0,0:00:06.97,0:00:09.31,Default,,0000,0000,0000,,we post our views on social media,
Dialogue: 0,0:00:09.33,0:00:12.07,Default,,0000,0000,0000,,we march, we protest ...
Dialogue: 0,0:00:12.10,0:00:15.85,Default,,0000,0000,0000,,But who among us is working on solutions,
Dialogue: 0,0:00:15.87,0:00:18.33,Default,,0000,0000,0000,,big solutions to big issues,
Dialogue: 0,0:00:18.36,0:00:20.27,Default,,0000,0000,0000,,like gun violence,
Dialogue: 0,0:00:20.29,0:00:22.03,Default,,0000,0000,0000,,mistreatment of workers,
Dialogue: 0,0:00:22.05,0:00:23.76,Default,,0000,0000,0000,,flood, famine, drought?
Dialogue: 0,0:00:23.79,0:00:26.31,Default,,0000,0000,0000,,Who is on it?
Dialogue: 0,0:00:26.33,0:00:27.49,Default,,0000,0000,0000,,Boom!
Dialogue: 0,0:00:28.78,0:00:30.08,Default,,0000,0000,0000,,These guys.
Dialogue: 0,0:00:30.10,0:00:32.12,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:32.14,0:00:34.84,Default,,0000,0000,0000,,What? You were hoping for Peter Parker?
Dialogue: 0,0:00:34.86,0:00:36.29,Default,,0000,0000,0000,,The Avengers?
Dialogue: 0,0:00:36.31,0:00:39.06,Default,,0000,0000,0000,,You don't expect this beacon of diversity,
Dialogue: 0,0:00:39.09,0:00:45.40,Default,,0000,0000,0000,,these good-looking, nicely dressed dudes\Njust oozing charisma to solve the issues?
Dialogue: 0,0:00:45.42,0:00:48.58,Default,,0000,0000,0000,,Well good, because they're actually\Nnot going to solve the issues.
Dialogue: 0,0:00:48.60,0:00:51.94,Default,,0000,0000,0000,,But before you dismiss them,
Dialogue: 0,0:00:51.97,0:00:54.37,Default,,0000,0000,0000,,let me say, they're not going\Nto solve the issues,
Dialogue: 0,0:00:54.39,0:00:56.62,Default,,0000,0000,0000,,but they will show us how.
Dialogue: 0,0:00:57.10,0:00:58.84,Default,,0000,0000,0000,,So who are they?
Dialogue: 0,0:00:58.87,0:01:00.33,Default,,0000,0000,0000,,They're activist investors:
Dialogue: 0,0:01:00.95,0:01:06.87,Default,,0000,0000,0000,,Carl Icahn, Dan Loeb,\NPaul Singer, Barry Rosenstein.
Dialogue: 0,0:01:06.89,0:01:10.47,Default,,0000,0000,0000,,These are the modern-day\NOGs of Wall Street.
Dialogue: 0,0:01:10.50,0:01:11.55,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:11.58,0:01:12.74,Default,,0000,0000,0000,,These are scary dudes.
Dialogue: 0,0:01:12.76,0:01:14.42,Default,,0000,0000,0000,,I don't mean Green Goblin scary.
Dialogue: 0,0:01:14.44,0:01:16.66,Default,,0000,0000,0000,,I mean real scary.
Dialogue: 0,0:01:17.17,0:01:21.81,Default,,0000,0000,0000,,The fear they strike in the hearts\Nof a company's CEO and board
Dialogue: 0,0:01:21.84,0:01:23.70,Default,,0000,0000,0000,,when they enter its stock
Dialogue: 0,0:01:23.72,0:01:28.58,Default,,0000,0000,0000,,is the same fear you feel\Nwhen you hear a bear outside your tent,
Dialogue: 0,0:01:28.60,0:01:29.84,Default,,0000,0000,0000,,and it's dark,
Dialogue: 0,0:01:29.87,0:01:32.40,Default,,0000,0000,0000,,and you're sitting there\Nwith a mouthful of Doritos --
Dialogue: 0,0:01:32.42,0:01:33.48,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:33.51,0:01:34.66,Default,,0000,0000,0000,,that just moments ago,
Dialogue: 0,0:01:34.68,0:01:37.65,Default,,0000,0000,0000,,you had snuck out of the tent\Nto pull down from the bear hang,
Dialogue: 0,0:01:37.68,0:01:39.08,Default,,0000,0000,0000,,because you had the munchies.
Dialogue: 0,0:01:39.10,0:01:40.57,Default,,0000,0000,0000,,That fear.
Dialogue: 0,0:01:41.24,0:01:42.96,Default,,0000,0000,0000,,And in that moment, you are praying,
Dialogue: 0,0:01:42.99,0:01:46.37,Default,,0000,0000,0000,,"Oh Lord, please let this bear\Nbe passing through."
Dialogue: 0,0:01:46.40,0:01:49.23,Default,,0000,0000,0000,,That bear is not passing through!
Dialogue: 0,0:01:49.25,0:01:52.02,Default,,0000,0000,0000,,That bear made a detour for you.
Dialogue: 0,0:01:52.04,0:01:54.04,Default,,0000,0000,0000,,Bears like Doritos!
Dialogue: 0,0:01:54.07,0:01:55.20,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:55.22,0:01:57.53,Default,,0000,0000,0000,,Activists like money.
Dialogue: 0,0:01:57.55,0:02:03.51,Default,,0000,0000,0000,,Some activists also like Doritos,\Nbut they definitely want money.
Dialogue: 0,0:02:04.31,0:02:08.65,Default,,0000,0000,0000,,And the way they make money,\Nthe way they create value,
Dialogue: 0,0:02:08.67,0:02:11.27,Default,,0000,0000,0000,,is by getting management of corporations
Dialogue: 0,0:02:11.29,0:02:12.91,Default,,0000,0000,0000,,to make changes.
Dialogue: 0,0:02:14.00,0:02:17.13,Default,,0000,0000,0000,,Now, some will argue\Nthat the changes they create,
Dialogue: 0,0:02:17.15,0:02:19.79,Default,,0000,0000,0000,,the value they create,\Nis too short-term in nature.
Dialogue: 0,0:02:20.35,0:02:24.11,Default,,0000,0000,0000,,And others will say the tactics\Nthey use are egregious.
Dialogue: 0,0:02:24.13,0:02:25.54,Default,,0000,0000,0000,,I agree.
Dialogue: 0,0:02:25.57,0:02:27.28,Default,,0000,0000,0000,,Long, drawn-out lawsuits,
Dialogue: 0,0:02:27.30,0:02:28.79,Default,,0000,0000,0000,,public smear campaigns --
Dialogue: 0,0:02:28.81,0:02:31.15,Default,,0000,0000,0000,,there is no need for that.
Dialogue: 0,0:02:31.74,0:02:34.89,Default,,0000,0000,0000,,But I must say, there's\Na small handful of activists,
Dialogue: 0,0:02:34.92,0:02:36.21,Default,,0000,0000,0000,,very small,
Dialogue: 0,0:02:36.24,0:02:39.17,Default,,0000,0000,0000,,that go to great lengths\Nto be constructive and collaborative.
Dialogue: 0,0:02:39.20,0:02:41.92,Default,,0000,0000,0000,,And overall, we have to give credit\Nwhere credit is due.
Dialogue: 0,0:02:41.94,0:02:45.79,Default,,0000,0000,0000,,As a group, they have managed\Nto catalyze large-scale change
Dialogue: 0,0:02:45.81,0:02:47.04,Default,,0000,0000,0000,,in large corporations,
Dialogue: 0,0:02:47.06,0:02:49.28,Default,,0000,0000,0000,,and that's no small feat.
Dialogue: 0,0:02:50.40,0:02:51.82,Default,,0000,0000,0000,,Now, imagine a world
Dialogue: 0,0:02:52.89,0:02:55.95,Default,,0000,0000,0000,,where all investors were working\Nwith management to make change,
Dialogue: 0,0:02:55.97,0:02:57.82,Default,,0000,0000,0000,,not just to make more money,
Dialogue: 0,0:02:58.98,0:03:01.92,Default,,0000,0000,0000,,but to improve\Nthe environment and society.
Dialogue: 0,0:03:01.95,0:03:06.61,Default,,0000,0000,0000,,Imagine what a greener\Nand better world this would be.
Dialogue: 0,0:03:06.64,0:03:08.59,Default,,0000,0000,0000,,Now, why? Why would an investor bother?
Dialogue: 0,0:03:08.61,0:03:11.54,Default,,0000,0000,0000,,And at first, blush I'm with you:\NWhy would an investor care?
Dialogue: 0,0:03:11.56,0:03:13.90,Default,,0000,0000,0000,,Because if doing well on ESG issues --
Dialogue: 0,0:03:13.93,0:03:16.71,Default,,0000,0000,0000,,environmental, social\Nand governance issues --
Dialogue: 0,0:03:16.74,0:03:19.40,Default,,0000,0000,0000,,was just an act of good\Ncorporate citizenship,
Dialogue: 0,0:03:20.44,0:03:22.35,Default,,0000,0000,0000,,then I agree, investors would not care.
Dialogue: 0,0:03:22.37,0:03:23.82,Default,,0000,0000,0000,,But the good news,
Dialogue: 0,0:03:23.84,0:03:27.02,Default,,0000,0000,0000,,and perhaps the saving grace\Nfor our collective futures,
Dialogue: 0,0:03:27.04,0:03:30.76,Default,,0000,0000,0000,,is that it's so much more than\Nan act of good corporate citizenship.
Dialogue: 0,0:03:31.38,0:03:32.74,Default,,0000,0000,0000,,It's good business.
Dialogue: 0,0:03:33.38,0:03:36.14,Default,,0000,0000,0000,,There's now enough evidence\Nthat shows a clear correlation
Dialogue: 0,0:03:36.17,0:03:39.37,Default,,0000,0000,0000,,between ESG performance\Nand financial performance.
Dialogue: 0,0:03:39.40,0:03:42.60,Default,,0000,0000,0000,,Companies that do good\Nfor the environment and society
Dialogue: 0,0:03:42.63,0:03:44.61,Default,,0000,0000,0000,,also do well financially.
Dialogue: 0,0:03:45.36,0:03:47.81,Default,,0000,0000,0000,,And some of the best\Ncompanies are catching on.
Dialogue: 0,0:03:47.83,0:03:49.16,Default,,0000,0000,0000,,Like Adidas:
Dialogue: 0,0:03:49.19,0:03:53.11,Default,,0000,0000,0000,,Adidas is cleaning up the ocean\Nand making money in the process.
Dialogue: 0,0:03:53.13,0:03:57.33,Default,,0000,0000,0000,,Adidas teamed up with an organization\Ncalled Parley for the Oceans.
Dialogue: 0,0:03:57.36,0:04:00.89,Default,,0000,0000,0000,,Parley goes out and collects\Nplastic waste from the ocean.
Dialogue: 0,0:04:00.92,0:04:03.38,Default,,0000,0000,0000,,Adidas uses the plastic waste\Nto make shoes.
Dialogue: 0,0:04:03.41,0:04:06.02,Default,,0000,0000,0000,,Shoes made with plastic from the ocean:
Dialogue: 0,0:04:06.04,0:04:08.77,Default,,0000,0000,0000,,good for the environment\Nand good for business.
Dialogue: 0,0:04:09.21,0:04:13.11,Default,,0000,0000,0000,,Because if you know that rapidly growing\Nconsumer segment known as hipsters --
Dialogue: 0,0:04:13.72,0:04:15.36,Default,,0000,0000,0000,,and I know you know hipsters --
Dialogue: 0,0:04:15.39,0:04:19.00,Default,,0000,0000,0000,,then you know that a hipster faced with\Nthe choice between a no-name shoe
Dialogue: 0,0:04:19.02,0:04:21.31,Default,,0000,0000,0000,,and an Adidas made with\Nplastic from the ocean
Dialogue: 0,0:04:21.33,0:04:25.31,Default,,0000,0000,0000,,will pick the Adidas every day\Nof the week and twice on Sunday,
Dialogue: 0,0:04:25.33,0:04:27.74,Default,,0000,0000,0000,,and then walk around like it's no big deal
Dialogue: 0,0:04:27.77,0:04:30.92,Default,,0000,0000,0000,,but look for every opportunity\Nto talk about them.
Dialogue: 0,0:04:31.60,0:04:33.42,Default,,0000,0000,0000,,Like, in an Uber Pool.
Dialogue: 0,0:04:33.44,0:04:34.48,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:34.51,0:04:37.12,Default,,0000,0000,0000,,"Hey, I noticed you looking at my feet."
Dialogue: 0,0:04:37.14,0:04:41.31,Default,,0000,0000,0000,,"What? Dude, no, I'm just making slides.\NI'm a consultant. I make slides.
Dialogue: 0,0:04:41.33,0:04:43.68,Default,,0000,0000,0000,,I'm making PowerPoint slides,\NI'm not looking --"
Dialogue: 0,0:04:43.71,0:04:44.88,Default,,0000,0000,0000,,"No, it's fine.
Dialogue: 0,0:04:44.90,0:04:46.30,Default,,0000,0000,0000,,I get why you'd be looking.
Dialogue: 0,0:04:46.33,0:04:48.43,Default,,0000,0000,0000,,The plastic on my shoe\Nmust be bothering you.
Dialogue: 0,0:04:48.46,0:04:50.98,Default,,0000,0000,0000,,Well, let me talk about it\Nfor the rest of this ride.
Dialogue: 0,0:04:51.01,0:04:53.42,Default,,0000,0000,0000,,You see, the plastic on my shoe\Nis from the ocean,
Dialogue: 0,0:04:53.44,0:04:55.59,Default,,0000,0000,0000,,on my feet, not in your fish,
Dialogue: 0,0:04:55.62,0:04:57.77,Default,,0000,0000,0000,,being walked on, not being munched on.
Dialogue: 0,0:04:57.80,0:05:00.32,Default,,0000,0000,0000,,Happy feet. Happy fish. Happy ocean.
Dialogue: 0,0:05:00.34,0:05:02.69,Default,,0000,0000,0000,,Doing my part. I got eco-shoes.\NI got eco-shoes.
Dialogue: 0,0:05:02.71,0:05:04.54,Default,,0000,0000,0000,,You need some eco-shoes?"
Dialogue: 0,0:05:04.56,0:05:07.03,Default,,0000,0000,0000,,And so on, just cornering him.\NWe've all been there.
Dialogue: 0,0:05:07.05,0:05:09.92,Default,,0000,0000,0000,,"Hey, pass me your cell phone.\NI'll give you a discount code.
Dialogue: 0,0:05:09.95,0:05:11.56,Default,,0000,0000,0000,,Let me give you a discount code."
Dialogue: 0,0:05:11.58,0:05:12.73,Default,,0000,0000,0000,,We've all been --
Dialogue: 0,0:05:12.76,0:05:14.90,Default,,0000,0000,0000,,Folks, I have jumped out\Nof moving Uber Pools.
Dialogue: 0,0:05:14.93,0:05:16.03,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:05:16.06,0:05:18.68,Default,,0000,0000,0000,,Just, moving, highway, I'm out. I'm out.
Dialogue: 0,0:05:20.57,0:05:23.85,Default,,0000,0000,0000,,But we've got to forgive the hipsters,\Nwe need to love the hipsters.
Dialogue: 0,0:05:23.88,0:05:26.37,Default,,0000,0000,0000,,We need hipsters,\Nand we need companies like Adidas,
Dialogue: 0,0:05:26.39,0:05:29.89,Default,,0000,0000,0000,,and what we need most is for investors\Nto convince other companies
Dialogue: 0,0:05:29.92,0:05:31.53,Default,,0000,0000,0000,,to behave like Adidas.
Dialogue: 0,0:05:31.55,0:05:33.26,Default,,0000,0000,0000,,And herein lies the challenge.
Dialogue: 0,0:05:33.97,0:05:37.86,Default,,0000,0000,0000,,There's a growing group of investors,\Ncall them "conscious investors."
Dialogue: 0,0:05:37.89,0:05:40.66,Default,,0000,0000,0000,,Conscious investors care about ESG issues.
Dialogue: 0,0:05:41.79,0:05:45.98,Default,,0000,0000,0000,,And they talk a lot about\Nengaging management on ESG issues.
Dialogue: 0,0:05:46.00,0:05:48.65,Default,,0000,0000,0000,,But they don't actually get\Nmanagement to make changes
Dialogue: 0,0:05:48.67,0:05:51.46,Default,,0000,0000,0000,,that will improve\Nthe environment and society.
Dialogue: 0,0:05:52.08,0:05:55.65,Default,,0000,0000,0000,,And this is where conscious investors\Ncan take a page from the playbook
Dialogue: 0,0:05:55.68,0:05:57.61,Default,,0000,0000,0000,,of the activist investors,
Dialogue: 0,0:05:57.63,0:06:01.55,Default,,0000,0000,0000,,because the activist investors have no\Nissues getting management to make changes.
Dialogue: 0,0:06:01.57,0:06:04.10,Default,,0000,0000,0000,,They have no issues turning up the heat.
Dialogue: 0,0:06:04.12,0:06:05.32,Default,,0000,0000,0000,,Take Paul Singer.
Dialogue: 0,0:06:05.35,0:06:07.69,Default,,0000,0000,0000,,He's an old-school Wall Street OG,
Dialogue: 0,0:06:07.71,0:06:11.42,Default,,0000,0000,0000,,now in his 70s, loves Doritos,\Nloves making money.
Dialogue: 0,0:06:12.47,0:06:15.88,Default,,0000,0000,0000,,Argentina owed Paul 600 million dollars
Dialogue: 0,0:06:15.90,0:06:17.82,Default,,0000,0000,0000,,and would not pay.
Dialogue: 0,0:06:18.39,0:06:19.55,Default,,0000,0000,0000,,Big mistake.
Dialogue: 0,0:06:19.58,0:06:22.99,Default,,0000,0000,0000,,You can't take money from an OG\Nand not pay it back.
Dialogue: 0,0:06:23.42,0:06:25.87,Default,,0000,0000,0000,,Paul went to war with Argentina.
Dialogue: 0,0:06:25.90,0:06:27.99,Default,,0000,0000,0000,,I am not inventing.
Dialogue: 0,0:06:28.01,0:06:29.58,Default,,0000,0000,0000,,This is big. This was huge.
Dialogue: 0,0:06:29.61,0:06:32.25,Default,,0000,0000,0000,,This was bigger than Tyson vs Holyfield,
Dialogue: 0,0:06:32.27,0:06:33.64,Default,,0000,0000,0000,,Ali vs Foreman.
Dialogue: 0,0:06:33.66,0:06:35.70,Default,,0000,0000,0000,,This was man vs country.
Dialogue: 0,0:06:35.73,0:06:40.47,Default,,0000,0000,0000,,Paul Singer started going around the world\Ntrying to seize up Argentinian assets.
Dialogue: 0,0:06:40.50,0:06:45.16,Default,,0000,0000,0000,,At one point, he tried to seize\Nan Argentinian navy vessel
Dialogue: 0,0:06:45.19,0:06:46.44,Default,,0000,0000,0000,,off the coast of Ghana.
Dialogue: 0,0:06:46.46,0:06:49.90,Default,,0000,0000,0000,,He tried to take over a 350-foot ship
Dialogue: 0,0:06:49.92,0:06:53.84,Default,,0000,0000,0000,,while big navy officers\Nwith big guns were on the ship.
Dialogue: 0,0:06:53.87,0:06:57.40,Default,,0000,0000,0000,,He got the police in Ghana\Nto show up with a crane
Dialogue: 0,0:06:57.42,0:06:58.90,Default,,0000,0000,0000,,and threaten to board the ship,
Dialogue: 0,0:06:58.93,0:07:03.44,Default,,0000,0000,0000,,and it wasn't until\Nthe navy officers drew their weapons
Dialogue: 0,0:07:03.46,0:07:05.27,Default,,0000,0000,0000,,that they called off the operation.
Dialogue: 0,0:07:05.77,0:07:08.36,Default,,0000,0000,0000,,That's what I call turning up the heat.
Dialogue: 0,0:07:08.38,0:07:09.60,Default,,0000,0000,0000,,Now, you may say
Dialogue: 0,0:07:10.48,0:07:12.77,Default,,0000,0000,0000,,Paul lost the battle.
Dialogue: 0,0:07:12.80,0:07:14.37,Default,,0000,0000,0000,,And I'll say, Paul won the war,
Dialogue: 0,0:07:14.39,0:07:16.23,Default,,0000,0000,0000,,because Paul didn't get paid one time,
Dialogue: 0,0:07:16.26,0:07:19.38,Default,,0000,0000,0000,,he got paid 20 times\Nhis original investment.
Dialogue: 0,0:07:20.83,0:07:22.35,Default,,0000,0000,0000,,Then you have Barry Rosenstein.
Dialogue: 0,0:07:22.38,0:07:23.67,Default,,0000,0000,0000,,His fund, Jana Partners,
Dialogue: 0,0:07:23.69,0:07:26.14,Default,,0000,0000,0000,,started stealth-mode buying up\Nstock in Whole Foods,
Dialogue: 0,0:07:26.17,0:07:28.57,Default,,0000,0000,0000,,at a time when Whole Foods was struggling.
Dialogue: 0,0:07:28.60,0:07:30.50,Default,,0000,0000,0000,,They got to eight percent, came out,
Dialogue: 0,0:07:30.52,0:07:33.28,Default,,0000,0000,0000,,and pushed Whole Foods\Nto sell itself to Amazon,
Dialogue: 0,0:07:33.30,0:07:37.35,Default,,0000,0000,0000,,and not because Barry wanted\Nsame-day delivery of his organic Doritos.
Dialogue: 0,0:07:37.37,0:07:38.40,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:07:38.100,0:07:40.98,Default,,0000,0000,0000,,He wanted to make some money.
Dialogue: 0,0:07:41.01,0:07:43.80,Default,,0000,0000,0000,,Now, the CEO of Whole Foods,\NJohn Mackey, and the board
Dialogue: 0,0:07:43.82,0:07:48.03,Default,,0000,0000,0000,,did not want to sell themselves to Amazon,
Dialogue: 0,0:07:48.05,0:07:50.75,Default,,0000,0000,0000,,because that would be\Nthe prime example of selling out.
Dialogue: 0,0:07:51.28,0:07:53.35,Default,,0000,0000,0000,,But in the end, they caved.
Dialogue: 0,0:07:53.88,0:07:56.46,Default,,0000,0000,0000,,Why? Because Barry turned up the heat,
Dialogue: 0,0:07:56.48,0:07:59.33,Default,,0000,0000,0000,,and he made 300 million\Ndollars in the process.
Dialogue: 0,0:07:59.78,0:08:02.89,Default,,0000,0000,0000,,And he did not leave\Na very nice impression on John.
Dialogue: 0,0:08:03.60,0:08:06.36,Default,,0000,0000,0000,,You're not going to see\NJohn and Barry just hugging it out
Dialogue: 0,0:08:06.39,0:08:07.66,Default,,0000,0000,0000,,at the Whole Foods café.
Dialogue: 0,0:08:08.76,0:08:10.76,Default,,0000,0000,0000,,Let's take a very different example now:
Dialogue: 0,0:08:11.52,0:08:14.02,Default,,0000,0000,0000,,the Chicago Teachers' Pension Fund,
Dialogue: 0,0:08:14.83,0:08:17.36,Default,,0000,0000,0000,,a $10 billion conscious investor.
Dialogue: 0,0:08:17.92,0:08:20.85,Default,,0000,0000,0000,,They recently came out hard\Nagainst private prisons in the US,
Dialogue: 0,0:08:20.87,0:08:22.24,Default,,0000,0000,0000,,and good for them.
Dialogue: 0,0:08:22.26,0:08:25.32,Default,,0000,0000,0000,,As a new parent, I tell you,\NI am troubled by devastating images
Dialogue: 0,0:08:25.35,0:08:28.85,Default,,0000,0000,0000,,of young children being ripped\Nout of the arms of their parents
Dialogue: 0,0:08:28.88,0:08:30.06,Default,,0000,0000,0000,,at the US border
Dialogue: 0,0:08:30.08,0:08:33.57,Default,,0000,0000,0000,,and being placed in private\Ndetention facilities that did too little
Dialogue: 0,0:08:33.60,0:08:36.75,Default,,0000,0000,0000,,to help the kids maintain\Ncontact with their parents.
Dialogue: 0,0:08:37.60,0:08:39.36,Default,,0000,0000,0000,,So what did the Chicago teachers do?
Dialogue: 0,0:08:40.46,0:08:43.26,Default,,0000,0000,0000,,Did they get management to make changes?
Dialogue: 0,0:08:43.28,0:08:44.54,Default,,0000,0000,0000,,Did they turn up the heat?
Dialogue: 0,0:08:44.57,0:08:46.69,Default,,0000,0000,0000,,Did they look management\Nin the eye and say,
Dialogue: 0,0:08:46.71,0:08:48.39,Default,,0000,0000,0000,,"This is no way to run a business.
Dialogue: 0,0:08:49.04,0:08:51.67,Default,,0000,0000,0000,,There's a different way\Nto do things. Let me show you"?
Dialogue: 0,0:08:51.69,0:08:55.12,Default,,0000,0000,0000,,No. They just sold their stock.
Dialogue: 0,0:08:55.97,0:08:57.43,Default,,0000,0000,0000,,Selling did nothing.
Dialogue: 0,0:08:57.45,0:08:59.83,Default,,0000,0000,0000,,It's not like management\Nwoke up the next day
Dialogue: 0,0:08:59.85,0:09:01.31,Default,,0000,0000,0000,,and had an epiphany and said,
Dialogue: 0,0:09:01.33,0:09:04.83,Default,,0000,0000,0000,,"Gosh, the teachers sold their stock.\NWe'd better be nice to the kids."
Dialogue: 0,0:09:04.85,0:09:06.26,Default,,0000,0000,0000,,No. That didn't happen.
Dialogue: 0,0:09:06.97,0:09:10.95,Default,,0000,0000,0000,,And despite a decade\Nof several high-profile divestitures
Dialogue: 0,0:09:10.98,0:09:12.76,Default,,0000,0000,0000,,in private prison stock in the US,
Dialogue: 0,0:09:12.78,0:09:14.49,Default,,0000,0000,0000,,the stock has continued to climb.
Dialogue: 0,0:09:14.51,0:09:18.60,Default,,0000,0000,0000,,The stock over that same period\Nhas outperformed the market.
Dialogue: 0,0:09:19.94,0:09:21.20,Default,,0000,0000,0000,,And the biggest issue is,
Dialogue: 0,0:09:21.22,0:09:24.82,Default,,0000,0000,0000,,we went from a set of conscious\Ninvestors owning the stock
Dialogue: 0,0:09:24.84,0:09:29.61,Default,,0000,0000,0000,,to it potentially being owned by investors\Nwho don't care about these issues
Dialogue: 0,0:09:29.63,0:09:31.96,Default,,0000,0000,0000,,and don't care what you think\Nabout these issues.
Dialogue: 0,0:09:32.42,0:09:34.99,Default,,0000,0000,0000,,And this is my issue\Nwith conscious investors.
Dialogue: 0,0:09:35.02,0:09:37.15,Default,,0000,0000,0000,,Their MO is to divest
Dialogue: 0,0:09:37.18,0:09:39.82,Default,,0000,0000,0000,,or divert money into ESG-focused funds.
Dialogue: 0,0:09:40.89,0:09:44.19,Default,,0000,0000,0000,,You can't divest your way\Nto a greener world.
Dialogue: 0,0:09:45.26,0:09:47.58,Default,,0000,0000,0000,,You can divest your way\Nto a greener portfolio,
Dialogue: 0,0:09:47.60,0:09:49.22,Default,,0000,0000,0000,,not to a greener world.
Dialogue: 0,0:09:50.72,0:09:52.06,Default,,0000,0000,0000,,So what's it going to take?
Dialogue: 0,0:09:52.08,0:09:54.13,Default,,0000,0000,0000,,What's it going to take\Nto flip the script,
Dialogue: 0,0:09:54.15,0:09:57.01,Default,,0000,0000,0000,,to get conscious investors to go\Nfrom divesting to engaging,
Dialogue: 0,0:09:57.03,0:10:00.51,Default,,0000,0000,0000,,to go from talking about engaging\Nto actually working with management
Dialogue: 0,0:10:00.53,0:10:04.56,Default,,0000,0000,0000,,to make changes that will improve\Ntheir ESG performance?
Dialogue: 0,0:10:05.48,0:10:08.38,Default,,0000,0000,0000,,Because there's a lot suggesting\Nthey should and they could.
Dialogue: 0,0:10:08.40,0:10:11.47,Default,,0000,0000,0000,,They should, given the clear correlation\Nbetween ESG performance
Dialogue: 0,0:10:11.50,0:10:12.92,Default,,0000,0000,0000,,and financial performance.
Dialogue: 0,0:10:13.88,0:10:16.71,Default,,0000,0000,0000,,They could because the activists\Nhave shown us they could.
Dialogue: 0,0:10:17.53,0:10:19.69,Default,,0000,0000,0000,,A shareholder can drive\Nchange in a company.
Dialogue: 0,0:10:19.72,0:10:23.65,Default,,0000,0000,0000,,The difference is, Paul and Barry\Ndo what they do to make money.
Dialogue: 0,0:10:24.43,0:10:29.53,Default,,0000,0000,0000,,The conscious investors would do it\Nto improve society and the environment
Dialogue: 0,0:10:29.56,0:10:31.31,Default,,0000,0000,0000,,and make money in the process
Dialogue: 0,0:10:31.33,0:10:34.33,Default,,0000,0000,0000,,and do it a little more\Ncollaboratively and constructively.
Dialogue: 0,0:10:35.24,0:10:38.25,Default,,0000,0000,0000,,And they have the backing\Nof the some of the largest investors.
Dialogue: 0,0:10:38.27,0:10:41.26,Default,,0000,0000,0000,,Vanguard and BlackRock --\Ntogether, they manage trillions.
Dialogue: 0,0:10:41.29,0:10:44.70,Default,,0000,0000,0000,,They've been increasingly vocal\Nabout the importance of ESG.
Dialogue: 0,0:10:45.54,0:10:49.53,Default,,0000,0000,0000,,The CEO of BlackRock has been\Nincreasingly vocal in his annual letters
Dialogue: 0,0:10:49.55,0:10:50.88,Default,,0000,0000,0000,,about this issue.
Dialogue: 0,0:10:51.51,0:10:56.28,Default,,0000,0000,0000,,Even Jana Partners, the same OGs\Nthat John called "greedy bastards,"
Dialogue: 0,0:10:56.31,0:10:58.97,Default,,0000,0000,0000,,recently co-wrote an open letter\Nto the board of Apple,
Dialogue: 0,0:10:58.100,0:11:02.12,Default,,0000,0000,0000,,saying, "Hey, your smartphones\Nare addictive for children.
Dialogue: 0,0:11:02.97,0:11:04.16,Default,,0000,0000,0000,,Fix it."
Dialogue: 0,0:11:04.81,0:11:06.47,Default,,0000,0000,0000,,Apple is working on it.
Dialogue: 0,0:11:07.98,0:11:10.20,Default,,0000,0000,0000,,So what it's going to take\Nis some pressure.
Dialogue: 0,0:11:10.74,0:11:13.35,Default,,0000,0000,0000,,It's going to take some pressure\Non conscious investors
Dialogue: 0,0:11:13.37,0:11:16.20,Default,,0000,0000,0000,,to, in turn, put some pressure\Non management
Dialogue: 0,0:11:16.22,0:11:20.48,Default,,0000,0000,0000,,to make changes that will improve\Nthe environment and society.
Dialogue: 0,0:11:21.52,0:11:22.68,Default,,0000,0000,0000,,And where do they start?
Dialogue: 0,0:11:22.70,0:11:25.51,Default,,0000,0000,0000,,They start by picking an issue\Nthat matters to them
Dialogue: 0,0:11:25.54,0:11:26.84,Default,,0000,0000,0000,,and taking a stand on it.
Dialogue: 0,0:11:27.38,0:11:30.63,Default,,0000,0000,0000,,Take a stand on an issue\Nthat lines up with your purpose:
Dialogue: 0,0:11:31.31,0:11:33.96,Default,,0000,0000,0000,,water preservation,\Nlabor rights, diversity.
Dialogue: 0,0:11:33.98,0:11:36.82,Default,,0000,0000,0000,,As long as it lines up\Nwith your purpose, you are golden.
Dialogue: 0,0:11:37.39,0:11:39.03,Default,,0000,0000,0000,,And the biggest unlock?
Dialogue: 0,0:11:39.05,0:11:44.02,Default,,0000,0000,0000,,Get the senior-most investment\Nprofessionals focused on this.
Dialogue: 0,0:11:44.59,0:11:46.87,Default,,0000,0000,0000,,Today, when an activist\Nshows up to a campaign,
Dialogue: 0,0:11:46.89,0:11:50.35,Default,,0000,0000,0000,,it's the senior investment professional\Ntalking to the CEO and the board
Dialogue: 0,0:11:50.38,0:11:51.82,Default,,0000,0000,0000,,and everyone hears about it.
Dialogue: 0,0:11:51.85,0:11:55.40,Default,,0000,0000,0000,,When a conscious investor shows up\Nto talk about an ESG issue,
Dialogue: 0,0:11:55.42,0:11:57.86,Default,,0000,0000,0000,,it's some junior person\Nin the risk department
Dialogue: 0,0:11:57.88,0:12:01.06,Default,,0000,0000,0000,,talking to some junior person\Nin the investor relations department,
Dialogue: 0,0:12:01.08,0:12:03.63,Default,,0000,0000,0000,,and nobody hears about it,\Nand that needs to change.
Dialogue: 0,0:12:03.66,0:12:05.29,Default,,0000,0000,0000,,And it's not some massive leap.
Dialogue: 0,0:12:05.31,0:12:07.68,Default,,0000,0000,0000,,Today, when a company\Nunderperforms financially,
Dialogue: 0,0:12:07.71,0:12:08.88,Default,,0000,0000,0000,,who is on the hook?
Dialogue: 0,0:12:08.90,0:12:10.57,Default,,0000,0000,0000,,The senior investment professional.
Dialogue: 0,0:12:10.60,0:12:11.75,Default,,0000,0000,0000,,So what do they do?
Dialogue: 0,0:12:11.78,0:12:13.98,Default,,0000,0000,0000,,They drop everything\Nand work with management,
Dialogue: 0,0:12:14.01,0:12:15.72,Default,,0000,0000,0000,,collaboratively and constructively,
Dialogue: 0,0:12:15.74,0:12:19.25,Default,,0000,0000,0000,,to make changes to improve\Nthe company's financial performance.
Dialogue: 0,0:12:19.27,0:12:22.94,Default,,0000,0000,0000,,The same should be true when the company\Nunderperforms on ESG issues.
Dialogue: 0,0:12:22.96,0:12:26.70,Default,,0000,0000,0000,,And yes, that requires standardization\Non how we measure ESG,
Dialogue: 0,0:12:26.72,0:12:27.91,Default,,0000,0000,0000,,but we're on it.
Dialogue: 0,0:12:29.20,0:12:31.14,Default,,0000,0000,0000,,So folks, here's my call to action:
Dialogue: 0,0:12:31.77,0:12:33.34,Default,,0000,0000,0000,,it's your money.
Dialogue: 0,0:12:33.36,0:12:34.87,Default,,0000,0000,0000,,It's your pension fund,
Dialogue: 0,0:12:34.90,0:12:36.72,Default,,0000,0000,0000,,it's your sovereign wealth fund.
Dialogue: 0,0:12:36.75,0:12:38.40,Default,,0000,0000,0000,,it's your university's endowment.
Dialogue: 0,0:12:38.42,0:12:39.77,Default,,0000,0000,0000,,It's your money.
Dialogue: 0,0:12:39.80,0:12:43.44,Default,,0000,0000,0000,,And it's your right to have your money\Nmanaged in line with your values.
Dialogue: 0,0:12:43.91,0:12:45.19,Default,,0000,0000,0000,,So use your voice
Dialogue: 0,0:12:45.80,0:12:47.32,Default,,0000,0000,0000,,and trust that it matters.
Dialogue: 0,0:12:47.90,0:12:51.74,Default,,0000,0000,0000,,It was your voice that got the investors\Nmore conscious in the first place.
Dialogue: 0,0:12:51.76,0:12:53.68,Default,,0000,0000,0000,,You protested for years,
Dialogue: 0,0:12:53.71,0:12:56.63,Default,,0000,0000,0000,,because you didn't feel right\Nabout your money being invested
Dialogue: 0,0:12:56.66,0:12:59.44,Default,,0000,0000,0000,,in companies whose values\Ndon't line up with yours.
Dialogue: 0,0:12:59.47,0:13:01.35,Default,,0000,0000,0000,,It's time to use that voice again.
Dialogue: 0,0:13:01.37,0:13:03.69,Default,,0000,0000,0000,,But this time, instead of\Npushing them to divest,
Dialogue: 0,0:13:03.72,0:13:07.25,Default,,0000,0000,0000,,push them to engage, truly engage,\Ntruly work with management
Dialogue: 0,0:13:07.27,0:13:10.88,Default,,0000,0000,0000,,to make changes that will improve\Ntheir ESG performance.
Dialogue: 0,0:13:12.45,0:13:14.52,Default,,0000,0000,0000,,You made them aware of the issues.
Dialogue: 0,0:13:14.55,0:13:16.48,Default,,0000,0000,0000,,You can now focus them on fixing them.
Dialogue: 0,0:13:17.07,0:13:18.64,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:13:18.66,0:13:21.04,Default,,0000,0000,0000,,(Applause)