 community of the forum, participants from business, from governments, from civil society, social entrepreneurs, startups, the right mix which we need here to have really action oriented meeting. I want to welcome particularly Mayor de Blasio. Mayor, I think many issues which we discussed during this meeting are very close to your heart and many of the actions which we will propose, you have already in some way implemented in your own city. A special greeting goes of course to all our chair of this meeting and to our panelists and I just want to particularly appreciate your presence Prime Minister here this morning. Now, what are we doing here? We are not a celebrity meeting. We are a do-tank, a sink tank. We see more do-tanks than a sink tank. So sinking has already been done. Now we have to implement and what we will do and discuss are over 100 different projects prepared by multi-stakeholder coalitions to advance sustainable development goals. So this is not a normal conference. I think every of the sessions has been prepared by work processes, by the engagement of many of you and I want to thank you for that. If we look at the role of the World Economic Forum as a platform for public-private partnership, we want to advance in very concrete ways the SDGs and of course the implementation of the Paris Agreement. But that's not enough. I think the world is changing and transforming itself at a rapid speed. We are in the midst of the fourth industrial revolution. We see more and more a multipolar world. We need more cooperation also on a global level to shape the global architecture which we need for a new context which is completely different from what we have seen when we built the afterwards institutions and processes. So the World Economic Forum will be committed to provide its platform on a very concrete grassroots level basis as we do here but we will also create a platform to shape the global infrastructure for tomorrow. Now again, Mayor, great pleasure to welcome here and please give Mayor Bill de Placio a big hand at joining us this morning. Thank you so much Klaus and Klaus. I want to thank you for so often convening people from around the world in common cause and for being such a global voice of conscience. Let's thank Klaus for all he has done. I want to thank all of you for being here. Everyone in this room has an opportunity to be a forceful agent of change in the days, the weeks, the months ahead and I'm not saying the years on purpose because this change that we need is so urgent. Particularly when it comes to the topic of climate change that we all have to think about all we can do and how quickly we can do it. That's why this gathering is so important. I want to thank the wonderful panel that will speak in a moment in the leadership they provide. We are honored to have you all in our city and all the participants. And a particular thank you to a member of my administration my commissioner for international affairs who work so closely with the UN which we're honored to host commissioner Penny Abiuardina. Thank you so much. The New York attitude you've probably all seen it over the years New Yorkers are not known for modesty. So I will say this with a typical viewpoint of a New Yorker I can't think of a better place in the entire world for this meeting to be happening. We as a city have been focused on achieving sustainable development goals for many years as Klaus indicated. We believe the best way to do that is to put those goals out publicly and hold our own feet to the fire. And I want to say to anyone in the room who has a constituency who is an elected official or has a board to answer to or shareholders to answer to it is not always comforting to put your goals out publicly because of course they're often hard to achieve and everyone's watching but I can tell you it forces action it forces an entire organizational mindset to take hold that urgency becomes the norm. So we put our goals out and in July we became the first city on the planet to hold ourselves publicly accountable for reporting our progress to the United Nations. This is important because we're trying to set an example not only to our own people but the cities around the world we should declare these goals we should own them we should live up to them I'm very happy to say that Helsinki has just joined us in this effort and I'd like to ask all of you to urge the cities the governments that in the cities you live in to take on this challenge as well to put the goals out publicly and live up to them. And in no vein is that more important than when it comes to climate change. We are proud of some of the actions were taken but there's no such thing as resting on our laurels when it comes to climate change every time we take an action we have to ask ourselves what is the immediate next thing we can do because there's no government on this earth there's no company there's no person who is per se doing enough to address climate change that's not a hopeless statement we know this is a battle that can be won but we know it can only be won with intense urgency and there isn't enough of that right now so we always are asking ourselves what's the next step how can we be bolder how can we be more audacious because we know there's no time to waste there's literally no time to waste and I will speak from the perspective of this city we had our before and after moment in the history of this city the worst natural disaster we ever experienced October 29th 2012 Hurricane Sandy we lost 44 people to that storm 19 billion dollars in damage whole neighborhoods of our city literally flattened I can tell you this with assurance since that day there are very few climate deniers left in New York City because we lived it and we see now what's happening around the world I was just in San Francisco for the climate conference the summit it was such an encouraging positive gathering but at the same time all over the state of California there were wildfires that were unprecedented all of this what's happened in California what's happened just now in the Carolinas and the Philippines and Hong Kong all of it from the same root cause and we can see it and more and more people are being touched by it and more and more people are ready for action as a result that is particularly true when it comes to our young people and I imagine everyone in this audience has had conversations with the younger people in your lives and your families where you work and their urgency is remarkable because it's entirely personal for them so we now need to think about how we upend our way of doing things that got us into this jam and by definition can't get us out we have to do something different we have to think in a different collective fashion we have to think about our policies and our power to vote for change we have to think about what we do in our personal lives and we also have to think about how we invest our money and this would seem to be the most obvious option the most obvious potential and yet we're only scratching the surface of what could be done the problems we face may seem daunting but we actually have more tools at our disposal than we realize and I want to tell you how this city is trying to use our economic power in this crucial moment to address the climate crisis because we believe we can make an impact we believe everyone in this room can make an impact and quickly in January we became the first United States city to begin divesting our pension assets from fossil fuels investments we don't believe there is a future for fossil fuel investments we are taking five billion dollars out of that broken and dying industry earlier this month we took another important step we joined forces with London obviously one of the other preeminent financial capitals of the world and we announced that we will form a coalition of cities around the world that will also divest their assets from fossil fuel we want to unleash the power of the local level the power of the grass roots to forge ahead when nations falter and we will keep acting even when nations fail including our own now just days ago we made another important announcement and this is the positive side of the coin divestment is necessary to wean us off the negative but we have a tremendous opportunity on the positive side and we looked around the world we saw the number of institutional investors were committed to the notion of putting one percent of their investments into renewable energy and climate solutions we looked at that and we said we have to do more our planet requires it we have to do more so we made an announcement that we will invest from this point on two percent of all of our pension assets in climate solutions that means an immediate investment of four billion dollars for renewables for retrofitting for the things that will save us it's one step and we're just one place and we know that overall estimates have indicated we'll need a trillion dollars in investment each year to really rid ourselves of fossil fuels and have the kind of renewable energy sources we need but we can get there if everyone acts we have a saying here in New York City and we're trying to live up to it put your money where your mouth is we believe in these ideas we need to back them up with action so we are not just investing in hydro and solar and wind we are investing in momentum for change every time one of us acts it helps the other one to act next now I want to give you a sense of the scale of this because if it sounds at first like how could that possibly be enough watch how these numbers grow very very quickly if the top 50 United States pension funds invested two percent of their assets in climate solutions that would be enough to convert half the homes of the United States of America to solar power isn't that extraordinary if every major United States pension fund invested two percent in climate solutions that would be two hundred billion dollars that would be a major step towards what we need globally so I'm asking investors around the world and all investors in this room to join us in this effort and join us quickly pull your money out of the doomed fossil fuel industry commit two percent of your assets to climate solutions and help all of us to create a lasting groundwork for change and I'll tell you something you will not only be doing the right thing for the earth you'll be doing the right thing as investors you'll be doing the right thing for your retirees and all the people who depend on your investments because why on earth will we put our money into an industry that will likely end up leaving two-thirds of its assets in the ground and we hope it will end up leaving two-thirds of its assets in the ground fossil fuel investments aren't just toxic for our planet they're toxic for our portfolios as well and we know that these investments in fossil fuels are toxic for people we see it around the world we know and so many people in this room have devoted their life to uplifting people in need we know it's the world's poorest who bear the brunt millions flooded from their homes millions of refugees millions afflicted by heat waves the whole underlying value of focusing on sustainable development all comes home to the climate issue and we all in this room know too there's a growing understanding and growing concern for what happens to everyday working people and how can they lead good and decent lives well fossil fuel investments won't help them do that you know in our country today and we saw it play out so deeply in the 2016 election the sense of economic insecurity and fear that interrelates with this issue well today in our country in the coal mines of West Virginia in the shale fields of North Dakota the oil refineries of Louisiana folks feel trapped their jobs simply won't last but they don't see an alternative we all owe them something better in this country and all over the world and we actually can provide it for them it's not a matter of just retraining people for new jobs it's about creating new jobs and creating a new economy and those jobs by definition are not in the dying industries of the past they're in these extraordinary hopeful grand possibilities of the industries of the future now we can make this happen I want to emphasize this I know I'm preaching to the converted but I know there's also a lot of people around the world who doubt whether we can achieve what we need to in the time we have I'm convinced we can do it but it will take relentless action we will literally have to build a whole new economy so that people can in their own homes in their own towns in their own backyards if you will they can have an economy that offers them both a paycheck and a planet they can live in that's the mission for all of us let me conclude with one more thought and with my deep appreciation to everyone in this room for all you do and I know a lot of people here have been working on addressing climate change for not just years but for decades I know you've come up against the climate deniers and you've come up against the cynics many a time you've come up against people who ignore the reality even though we see storm after storm and disaster after disaster and you've certainly met many people who are people of goodwill but say it's just too hard to fix well the next time you encounter any of these people please tell them that you are in New York City please tell them the biggest city in the United States of America is taking action and we believe this action can make a huge difference tell them to join us as quickly and as forcefully as they can you know at the end of a speech it's customary to quote a great mind a great philosopher, a great historical figure I will do that now and quote Frank Sinatra who sang once actually of New York City if you can make it there you'll make it anywhere I say if we can make it happen in New York City financial capital of the world if we can make it here you can make it happen where you live you can put your money into the technologies that will save us all you can help us break the vicious cycle we've been living in we know how much carbon has been pumped into the air already we know the path we're already on we know we have to break it and we know that every step and every action is needed and I will conclude with this simple thought we have to feel an energy every day as so many of our younger citizens do we have to feel an energy, an urgent energy at least that is a reusable bottle it was a lot of energy that's very good because if he had knocked over a plastic bottle I would have had to lecture him right there but as so many of our younger citizens feel we need to get fossil fuels out of our lives once and for all we have to do it fast because fossil fuels my friends belong only one place stranded in the ground let's make sure they stay there thank you I'll bless you all now three years ago we agreed on the SDGs the Sustainable Development Goals they are universal they cover everything from climate change to the goal of eradicating all extreme poverty by 2030 these are huge ambitions what we are lacking still is a roadmap a roadmap that match these ambitions because we can't solve all this with status quo or just with some additional development assistance or some projects we need systemic change and this panel will address shift in corporate business models a re-orientated and mobilized financial system not only looking at the cost of action but also the cost of inaction we will also have to look at an enabling environment that promotes SDG-aligned regulations and incentives so the modus operandi of this summit is to incentivize this emerging action revolution and we have a great panel to address this we have on my far left we have Prime Minister of Denmark Lars Löcke-Rasmussen that is very devoted to the SDGs and also shown a lot of leadership in this area David MacLennan, chairman and CEO of Cargill US Cargill founded in 1865 and is the largest privately owned cooperation in the US then we have Vinny Bianamiya executive director, Oxfam International and then here we have Barbara Novik vice chairman Blackrock US Barbara is one of the founders of Blackrock and today Blackrock is the world's largest asset manager 6.5 trillion or 7.5 trillion US dollars invested all over the world so I have one question that I want the panel to answer so we can kick off this whole thing and that starting question is what is really needed to stimulate a significant shift towards a sustainable marketplace why don't we start with you Barbara you have the 6.5 trillion so you have money talks so I'm going to start a little nontraditionally and I guess I would call it as you phrased it we are on the road and we are on I think a very good path so I'm going to talk about the glass being half full not just half empty and then what things we can do in addition I think as you look back over the last several years there's a serious effort at sustainability whether it is companies thinking about their own business and providing better quality information to investors or it is on the investor side as investors become more educated and selecting amongst products that are being offered so I don't have time to list all the initiatives today but things like the PRI if you look back April 2006 launched with 63 signatories and 6.5 trillion of assets today 1900 signatories representing over 80 trillion in assets huge progress and it's just one of the many initiatives I could go through an alphabet soup of them if anything one of the concerns that we have is that there are too many competing initiatives which leads to multiple standards and what we call survey fatigue and I'll come back to that and how the public sector can help in rationalizing that second is if you look back at corporate governance standards and stewardship standards globally again tremendous progress starting with the G20 OECD standards today we count 17 stewardship codes literally around the world from the UK to Japan to Australia to South Africa and more there's also been a tremendous consortium of asset owners and asset managers coming out with principles for both corporate governance and investment stewardship BlackRock takes this very seriously starting obviously many of you have heard of what we call now Larry's letter but Larry Fink our chairman and CEO sending a letter every year to other CEOs the last one getting tremendous pickup and really resonating I think with many many people around the world in addition to that we have a dedicated stewardship team we engage with thousands of companies around the world and vote in their annual meetings so a quick look on the product side also shows tremendous progress and just to give you some numbers to put it in perspective between 2015 and 2017 there were a hundred new sustainable mutual funds just here in the US launched in addition quite a few in Europe and in Asia and this is done to meet the needs of different kinds of clients just this last year alone it's a 30% increase in the assets in these kinds of funds around the world and this is true not just in equities but in bonds, in alternatives and all different products we continue to see this demand coming from different kinds of clients traditional pension plans defined contribution plans individual investors and that's a critical element people don't give enough weight to the preferences of the clients is critical to whether or not more assets will be allocated in this sector and the range of products can be quite extreme from the mutual funds or ETFs and things like that to private funds that maybe focus just on renewable power areas as more and more millennials become empowered we expect that this trend will certainly accelerate another big and important hurdle is data a picture of improvement however more room to go if you look back 2011 in the S&P 520% of the companies gave any sort of sustainable information sustainability report today 85% so you're seeing growing up tick in this but still room for improvement so we've been asked what more can be done let me give four different ideas one is to create more incentives for the asset owners you heard Mayor de Blasio New York City is taking actions they are an asset owner we need regulations to line up with the goals if the capital requirements if the tax incentives if the rating agencies if all these things are in place in a way that discourages sustainability we can't get asset owners to change their asset allocation so that is a fundamental piece second is encouraging the disclosure of material information by companies this might differ from industry to industry it might even be different from company to company somehow rationalizing the landscape of what is this alphabet soup of multiple surveys multiple entities is a critical component and one that only I think the public sector can solve right now third is the development of the products I call this having an easy pass so there's a very long road to get a product from inception to the market perhaps there can be a speed pass or an easy pass lane for products that have a sustainability component right now in the EU there's a project underway on taxonomy once we can agree on a common language perhaps we can use that roadmap to agree on how to get products available sooner and then fourthly is recognizing the importance of corporate governance and stewardship standards I noted earlier many different codes around the world we think this dialogue is critical and yet this very engagement is being questioned nowadays by competition authorities who have a totally different view of the world than the people in this room so when we look back we realize how far we've come literally billions of dollars of assets today invested in sustainable strategies that's a real positive hundreds of companies providing more insights into their business but we are at this important crossroads with the public sector working closely with the private sector can help in redefining the incentives encouraging the behavior we want for the outcomes that we want and helping us all get there quickly thank you it's very concrete Prime Minister the list we just got from Barbara and BlackRock so in your view as a leader of your country what are the things that needs to be done to really stimulate the establishment of a market for sustainability Denmark has seen a lot of growth in some of the renewables but to think this holistically what's your recipe? thank you for inviting me and first of all I think we definitely need a holistic approach I share the opinion that we are moving in the right direction I had the honor to share the UN summit three years ago where we adopted the SDGs and we are moving in the right direction but we need to move faster just to follow up on Mayor de Blasio who quoted a great mind I would like to quote Elizabeth Pressley a little less conversation a little more action I think that's what's needed and I think we need to realize that we need to invest in system change in food system, transportation, energy water like and if we want to make a real impact towards a greener and more sustainable world economy we need to change these systems so we need systematically changes and we need to realize that this cannot be done by any sector alone in fact as I see it the partnership concept that is sustainable development gold number 17 is actually the key to all this and not the potential in the rest of the 16 goals and I think Denmark is a living example of doing just that if you look into our society model we have managed to decouple emission and economic growth by this kind of consensus democracy we have in the Scandinavian countries where we have established partnerships between civil society, academia business and politicians and we have been pushing changes by regulatory framework and our business model our businesses have responded to that and for that reason we now have skills which could be used in other countries and I think that gives us the obligation to to lead to some extent and that's why we have most recently and I announced that at the UNK last year we have established a new global partnership called partnering for green growth and the global goals 2030 or simply P4G consists of right now eight countries the C40s among them New York I mean the network of the mega cities around the world leading businesses around the world Unilever as an example and the idea is to facilitate market-driven public-private partnerships within key economic areas by matching the public and private sectors and partnerships I think we can break down barriers for innovative solutions and sustainable growth barriers that neither sector can overcome along and just to be a little bit more concrete I would like to share first transportation transportation is the fastest growing source of greenhouse gas emission and accounts for 23% of CO2 emissions and transitioning to low emission vehicles alone could make an huge impact not only reducing emissions but particle pollution as well so replacing diesel buses with electric buses is exactly what one of the P4G projects sets out to do and the goal is to introduce a future-proof low emission economically profitable electric bus system in mega cities such as Mexico City and San Paolo and this could be an important step for the transition to green economy another example is the worldwide growth of e-commerce which has created a need to reduce and recycle more of the materials used to pack products in China home to the world's largest e-commerce company by volume Alibaba new approaches to package delivery, collection of materials and recycling show promising results and these results can be scaled to other cities worldwide so through this new P4G partnership we try to you know bring partners together and we support them economically we have established a fund and we have had a worldwide tender for concrete partnerships projects and we are pleased to announce some of them at the very first P4G summit next month in Copenhagen so I think there's no quick fixes but we have to bring the progressive progressive partners together in a very organized way and I think being Scandinavian countries who have showed or proved by example that this is doable it gives us a special responsibility to do so, thank you Thank you Prime Minister David McLeanon you listen to Barbara and what the Prime Minister also had to say on what they think it will take to stimulate the establishment of a system market looking forward to her review Well I heard the Mayor quote Frank Sinatra and then you said a little less talk a little more action which is Elvis Presley so I'm trying to think of another popular artist that I could quote but I don't have the answer right now but good morning and thank you for having me here on the panel it's an honor to be here and to talk about a topic that's very important and I'll pick up on two things I don't get Larry's letter so we're private so we don't have it but I agree and I read it and I agree with it and having a business being very explicit in your business about what is your purpose and how does it make the world a better place I think is a very important component of creating a sustainable system and a sustainable system for agriculture specifically we change our statement of purpose about three years ago to state that our purpose at Cargill is to nurse the world in a safe responsible and sustainable way so it's not just about getting food to where it's needed we wanted to call out specifically how are we going to do it focusing on the safety of the food system the safety of the people that are involved in supply chains do it in a responsible way responsible to the environment to the communities but in a sustainable way we have called that out as our purpose in this world in our company so I think that's one way to do it is to change the culture and the way you think which leads me to my second point which is what the mayor said is you've got to change your business model you can't just say we're going to do it the same old way and look where we are relative to climate change and so what's that old cliche about the definition of insanity keep on doing things the same way and expecting different results we have to change our business model and the mayor talked about fossil fuels for example we have a growing business in bio-industrial products which are ingredients whether it be in cosmetics or binder for asphalt or binder for insulation in homes which is made from agricultural products rather than petrochemicals so that is one thing we are doing we have three things one is the importance three things in terms of creating a sustainable system one is the importance of open trade and everybody knows what's going on open trade and getting products to where there are needed food products from places of surplus like North America and South America to places of deficit like Eastern Europe or Southeast Asia and trades under attack we think that's a mistake especially as it relates to agriculture and food there is enough food in the world to help reduce hunger maybe not eliminate it but it's got to get to where it's needed and we've got to have open borders to do it secondly private sector investment in infrastructure you look at a country like Brazil for example which is a huge agriculture producing nation but they are still developing infrastructure like ports railroads highways there's significant bottlenecks in the highway system in Brazil which make it difficult to get food out of the fields to the rivers and ports to be able to be exported now Brazil is a huge producer obviously I should say exporter of soybeans to China now that the Chinese have stopped importing US soybeans and then finally I would say trade and technology I'm sorry training a technology not trade and technology farmer training giving them the tools whether it just be basic knowledge particularly in developing countries about modern farming techniques that have evolved over decades in more well to do countries again North and South America to help them increase their yields to help them to go beyond just being subsistence farmers to give them the tools not only the agricultural tools but the life tools so for example in prime minister you mentioned about SDG17 and partnerships we've had over a 50 year partnership with CARE and we recognize we can't do this by ourselves we're an agriculture food and nutrition company we have to have partners like CARE or World Wildlife partners to help us work with farmers in their communities and in West Africa we developed a program called the Cargill Cocoa Promise which is pays farmers a premium for their cocoa products if they raise it if they grow cocoa and produce it in a sustainable way so it's very clear checklist of here's what you need to do and it's everything from responsible use of water and pesticides to safety and with that premium and I've visited one of the co-ops in Cote d'Ivoire recently they have taken that money and developed an infrastructure for their towns and villages like a bank, like a school like a medical system so it's not just about the skills to produce the food but it's also the infrastructure a modern banking system or to have a medical system to take care of their people I think that's part of creating sustainable agricultural system is to put the money back into the communities and give them and train them with the skills for agriculture and their own life and their own villages and their own well-being so that's what I think is necessary to do and what companies like ours can do to create a sustainable agriculture system and that's the kind of things that we are doing Just a short follow-up before we go to Winnie you are the largest privately held company in the US does that give you more flexibility when it comes to issues related to also caring about establishing a sustainable market and also I saw a BCG report that came out the other day showing that non-financial performance on certain development and sustainable development topics had statistically significant impact on companies' valuations and on margins is this a discussion you have in your board too? It is and I think we have the benefit of being privately owned and so as much as I miss not getting Larry's letter I don't miss having it I'll send it to you I get a copy of it every year somehow it makes it to me I don't have to go to every quarter and talk to the analysts about why did we miss earnings what are our margins in certain businesses it's a real privilege to be private but most importantly because we can take a longer term view and our family owners put 80% of the profits back into the company for investment in our employees and our business in the communities we give 2% of the profits to philanthropies around the world in our community so it is a real benefit to have that patience and we had a board meeting 2 weeks ago which one of our family directors said we will put people over profits and we can do that as a private company I don't think you can do that as a public company or if you do you're going to get a lot of criticism from your analysts and from your large institutional shareholders when they and it's a pleasure it's an honor to be on this panel and in this summit that the world economic forum organizes around the general assembly it's a great opportunity I just want to start from a point Barbara made she said talking about a glass being half full or half empty I want to talk about the half empty part and the interesting ways that we could fill the half empty part because it's a decade since the financial crisis and what's been and we are just now just a few blocks from its epicenter but what has been happening over the last decade billionaires fortunes have increased six times faster than average wages last year eight out of ten dollars of new wealth created went to the top one percent the bottom fifty percent got zero of the wealth that was created in the world so we're in a world where there's a few at the top who are having it good and there's a huge majority there who are quite hungry about the way things are going so we might say we are in the right direction but for many people they don't feel that the boat includes them and this crisis which is really a crisis of economic inequality has a human face let me tell you two stories here in the United States with poultry workers a woman like Dolores works hard in a poultry factory slicing the chickens but she and her co-workers have to wear diapers to work because they are not allowed a toilet break that's how bad it is I can talk about Boudi an Indonesian woman working she has to shell nine hundred fifty shrimps per hour stands for nine hours to get that minimum wage she gets it's so sad that people who are working to produce the food that we eat go hungry themselves hunger has been increasing the UN has released its report last week for the third year running the numbers of hungry people is increasing to where we were ten years ago on the question of hunger so the market for many of these people is not fair and is not sustainable I must say that I'm so frustrated that when we talk about the structural barriers in the market that disempower women that disempower workers that when we talk about all structural barriers others want to talk about the modest, the small things the tweaks that you can do around the market we need fundamental change fundamental change where should we start we should start with the business model I agree business models must change you know the chief economist of the central bank gave a piece of data that I've been quoting everywhere that in 1970 companies in the United Kingdom were giving to shareholders 10% of their profits 10% today it's 70% we have a type of shareholder capitalism that's extreme and that's what must change we have company business models that share value and power more equitably with the shareholders with their workers with their suppliers and this is possible these models are there Oxfam has been involved in experimenting with alternative business models for the last 30 40 years we founded a company that shares its profits with its workers that publishes its pay its pay ratios the top earner in the company doesn't earn more than 4.4 times the bottom earner the company has two seats on its board for its workers and so on and so on so these models exist we need governments to support them the investors in these alternative models so that they become the mainstream model so that the extreme business model fades away so that's what we need to change the business models secondly we need governments to act for their people not to be in a close relationship with big business to the extent that the billions that the big business people make they use to lobby governments more and more let me give you a piece of data that's shocking that our research has found here in the United States we found and we were looking at just some sub sectors we looked at the financial sector we looked at the pharma industry we found here in the US 50 biggest companies spent over 350 million lobbying on tax issues while receiving over 420 billion in tax breaks I know your mathematician some of you here if you work out the figure for every dollar spent on lobbying these 50 companies collectively received $1,200 in tax breaks now that's a return on investment so we need three areas of action from governments one to rein in tax dodging and to tax progressively we need that fiscal space to put in the investments that will then give quality health quality education reduce poverty two, we need governments to regulate the economy regulation is key we need to the market cannot be markets drive prosperity but markets should not drive society regulation is important the role of regulation is key here so those two for me are critical rein in tax dodging regulation and of course not trashing the planet completely the pendulum for climate action is now going to the south to the developing countries we need governments to make stronger commitments on their emission targets we need businesses to diverse from fossil fuels thank you Barbara, there has been a lot of reference to Larry Fink's CEO's letter they're quite famous but this year it really got the headlines because it was about companies responsibility to also be responsible not only to shareholders but to society to the employees but also those bigger causes that we have discussed today based on this letter have you seen any change or is the world changing are the companies taking more responsibility here so I would again be somewhat on the optimistic side and I think David's story was a positive one and a great example the response to Larry's letter was sensational that said everyone read into it what they wanted to we received hundreds of responses from CEOs many of them laying out as David did their company what they felt their purpose was how they were going about becoming a better corporate citizen if you will and I'm going to use BlackRock as an example because it's easy for us to tell other people we think you should have a purpose we think you should do these things but what does it mean for us and I think that will help put some perspective on it and I've taken to calling ESG G, S and E because I think it does start with governance in the case of a private company you have some flexibilities that a public company might not have but governance being a really critical component so when you look at BlackRock what do we consider our purpose creating better financial outcomes for clients that is the core of our purpose how do we do it how do we get there being a fiduciary acting in a positive way offering good products etc but when you look at the company itself starting with governance we've gone at and we've said we think diversity is important at the board level very important diversity of thought if you're running a global business you have a global perspective in your board room it's easy to measure do you have any women on your board so when you look at BlackRock and you look at the percentages whether it's international it's by citizenship it's by gender we have a diverse board and that's something we think is critical from a long term business perspective second look at the social side whether it's employees we do an employee opinion survey every year we actually listen and we respond to what the employees say we try to improve the environment for them changes in benefits changes in environment all different kinds of things if it comes up in the survey we try and address it likewise participating in our communities we have a whole program on impact and it's not just about giving money philanthropy but making volunteer opportunities available to our employees and encouraging them to participate in our communities and that's been extremely successful I think from our employees standpoint but also in the communities in which we live and work and then lastly is E E seems to be the focus of today but it is only one component and it is a broad component clean air clean water it's not just climate it's many many other things so I'll give again two examples we're not a manufacturing business we're not an agriculture business we're a business management business what things can we control one is data centers so we have built extremely energy efficient data centers it turns out energy these are energy pigs we've made more efficient designs we've located them with hydropower the ultimate renewable energy we've also focused on things like forests and one of the things that happens in the US is you have to deliver reams and reams of paper to your shareholders in your funds we've lobbied very hard so lobbying can be good many we've lobbied very hard to change that default to be an opt in versus an opt out where people will first get e-delivery electronic delivery of their statements only if they request paper will they get paper this will save millions of trees in addition to the production of the paper the delivery, the filling of landfills all of it extremely wasteful and this is an incredibly important energy issue an environmental issue that we think we can have some impact on so again simple examples we can give you many more but in the interest of time I'll stop there thank you Barbara and thank you for also mentioning this the interest of the time we are really getting close to the end but I wanted just to follow up shortly David on something Barbara said is on the change in the thinking among the companies and the CEOs you have had a long career in business also know many years as head of one of the largest companies in the United States have you seen a genuine change in the approach to this sustainability and when it comes to this issues among CEOs and leaders or is it partly window dressing that's one question the other one is what do you expect also from the regulators is there really a change from that side that is needed and is that happening I think to your first question yes I don't think it's window dressing and I think it depends on the company but I think more and more CEOs are talking about sustainability issues or on social responsibility and environmental responsibility some more than others but I do believe and it's driven by this type of dialogue it's driven by consumers and I would also say as I think about our own company generationally it's not a question and I would say that we find that people are coming to work for Cargill because of what we're doing in sustainability or because of our purpose our statement of purpose and when I think about when I came out of college that just was not even on the table back in the 80s 1980s not 1880s but if you think about the last four decades generationally it's far more important I think about what was your second question what do you expect from the regulators thank you so regulators expect them to be having one close to you there and I'll keep it brief but I think recognizing that markets need to work that it's not in regulation but it's politicians I think sending false signals about price and the mobility of food improper or short-term policies is not a good idea but I think the regulators we can't again I mentioned before we can't do it by ourselves we have to have partnerships with other organizations and the regulators to give us the support and the air cover if you will to change our business model thank you Prime Minister the sake of time one minute what do you see do you see any real change from the business side to satisfied with the proactiveness on the business side well I think you should never be satisfied but things again are moving in the right direction and when I look in the Danish business community and that goes more broadly in Europe generally speaking I agree with what you just said it's not just window dressing it's responding to facts I mean the reality of global warming but also to values among our youngsters I totally agree with you I mean when I talk to my own kids and they are in the 20s it's not only about money it's about a purpose in life so I think things are moving in the right direction but then again we shouldn't be too naive and I mean business is business so you can't just leave it to the business community and for that reason you need regulators to framing this change I agree with what you said about the need for free trade I mean if we should solve these problems we need the world to work together and we should avoid building barriers and walls but building bridges instead and I'm proud to say when I talk to the Danes or when I look into the figures the Danes are very very open minded and they are in favor of globalization and just to which to you I think the main reason for that is that we have managed not only in Denmark but in Northern Europe and Scandinavian societies to redistribute what we have gained from globalization so I think I mean if we should really achieve all this it's not only about working together in international communities there's also some homework to be done and I will not interfere in internal politics in the US but I think the key is free trade more international cooperation and to unlock this door we need the citizens to support this and in order to do so we should take care on a domestic level to redistribute the wealth among our citizens so they will be in favor of all this thank you Prime Minister, famous last words but they have to be 30 seconds is this fair? change is happening but change isn't happening fast enough we need to accelerate countries, poor countries are showing leadership for the question of climate change we have more investments higher and faster growing investments in renewable energies in China and India South Africa is one of the top 10 countries that are deploying utility scale solar power so we are seeing positive leadership especially in the developing countries we need to see more from the richer countries for business I think the change is too little too slow their supply chains are treating people and the environment really like trash people are not the minimum wage the living wage is not achieved the working conditions the gender wage gap I think the World Economic Forum has told us it's not going to be achieved in the next 150 years unless something changes just to pay men and women equally so there is still a lot to do social justice environmental justice by business thank you thank you to the panel one should end when one still wants to continue that's a good rule I have several other questions I would like to ask but we should all remain seated because we will know have a chance to really meet those that are walking the talk that are making change on the ground we will have the social entrepreneur of the year award ceremony it will happen after a short video then I welcome Hilda Schwab chairperson and co-founder of the SWAB foundation for social entrepreneurship Hilda will then come to the stage and lead us through the award ceremony we are lacking social inclusion we cannot rely on governments alone to provide social infrastructure and safety nets we must mobilize individuals who in entrepreneurial and innovative ways tackle the big problems we are faced with now and in the future the Schwab foundation gives the social entrepreneurs a network to exchange expertise and experiences it gives them a global presence and visibility all the other leaders who are part of the forum that social responsibility is more important than just making money having access to the world economic forum for any social entrepreneur gives us a greater chance to scale our impact thousands of initiatives on a local level that improve the lives of millions of people let's welcome Hilda Schwab ladies and gentlemen, dear friends this year marks the 20th anniversary of the Schwab foundation I clearly remember back in 1998 that social entrepreneurship was a new concept to us combining market discipline and business practices with a social mission and deep commitment to those less fortunate this idea captured our imagination and so Klaus and I decided to create and fund the Schwab foundation for social entrepreneurship in order to find and give a platform to social entrepreneurs at world economic forum events 350 social entrepreneurs were haunted over the last 20 years and most importantly those Schwab fellows formed their own community of experience exchange and strong professional and personal relations they are a global family they are united by their passion creativity and their persistence and optimism that a more just and equitable world is possible we just concluded a two day social entrepreneurs summit with 150 of our community members and the 2018 awardees that will be haunted today many of them will participate in the program of the sustainable impact development summit until tomorrow evening and contribute their expertise and experience I would like to associate Dr. Precious Moloimocepe with this ceremony applauding her steadfast leadership and support of this special community it is now my great pleasure to introduce to you the 2018 social entrepreneurs of the year and I invite each awardee to join me on stage when I call their name Rukti Tigabo with kids provides early childhood education to