 Hey guys, welcome back to my YouTube channel. This is Daniel Rosal here bringing you this video from as usual my lovely glorious home office here in Jerusalem on one of the longest nights or longest days of the year we're getting very close to the summer staltz this on the 21st It's not quite as fun as it was in Ireland where I grew up Where in the late late nights of June sometimes you get brightness till 10 11 o'clock at night Incredible site here in Jerusalem Israel it gets to about a 30 I know this because I keep Shabbat and our Shabbat observance times are Linked to the Sun So that's about as late as we'll get anyway after Shabbat ended much of which I spent in sleep as many Many hard-working Israeli professionals do I did a little check on I Google news for those who don't know I don't talk a ton on this YouTube channel about my day job because I like to keep my Private life and work at least somewhat separated But I did recently begin working with a thought leader in the field of sustainability sustainable finance impact investing really is his thing and It's been firstly really enjoyable actually. I spent most of my career working in tech comms and to do something Bigger I think is the is the best word and this look at the shiny new technology Look at that shiny new technology putting the piece together What are all these technological advances working towards and that's kind of a lot of the creative of impact is moving moving towards a system moving away from our current system which just looks at risk return and Anyone familiar with the their writing and work of Sir Ronald Cohen is probably already guessed who I'm working for Because he talks about this all the time moving away from risk return to risk return impact or putting impact By the site of risk return which I absolutely believe in on a personal level as well as a professional So I wasn't even looking actually for ESG news But I came across this piece by Tanya Hester up on Bloomberg opinion It says Middle Eastern Edition Maybe that's why I saw it but it was anyway was syndicated in the Washington Post And I think she articulates some really really good thoughts that I wanted to kind of drill a little talk a little bit further about so the headline was Millennials and Gen Z are fed up with ESG by the by I'm going on Tuesday to a conference in Tel Aviv by Magazine and this is actually the theme or one of the meta themes of the conference is bridging the divide between Older generations and millennial and Gen Z or how to communicate the impact message to them So very very fitting that I came across this tonight Tanya, and I hope I'm pronouncing the J here correctly says Younger investors are impatient to see real action on climate change and other societal ills And they want their money to have a stronger impact Ethically minded now I'm not going to just read the whole thing through because frankly there be no point to this video if that was all I was doing and I want to just throw in a few cents By the way, Tanya is the author of wallet activism and work optional and host of the podcast wallet activism Tanya says ethically minded investors are growing more skeptical of ESG Wondering whether it actually furthers environmental or social justice aims at the same time demand for ethical investing is only going to increase as Progressive Millennials and Gen Z is a crew more financial assets often by inheriting that money from their parents So yeah, I mean we have this kind of Interesting dynamic going on at the moment in which you know There's there's a lot of talk of Gen Z and millennial and Millennials being the poorest generation But that kind of disregards the fact that we do you know a lot of Lisa I don't think we can say everyone stands to inherit money from their conservative parents But there's a large there will be a large transfer of capital from these older more conservative generations to Gen Z ears and Something that Tanya talks about later in this piece is that we're going to see now two sides of the market be increasingly Occupied by these demographics by Gen Z millennial. We're going to see the buy side of the market. We're going to see investors And we're also going to see The sell side in other words Gen Z millennial getting involved in Putting together financial instruments for their peers to invest in so there's going to be to a Conflicts of these two interesting dynamics So but the problem that Tanya envisions and I think this article may prove very prescient is as follows that the long Anticipated SEC rules on ESG do not satisfy them a prospect that seems increasingly likely as Financial service industry groups push back on proposed disclosure rules We should expect to see an ever-increasing appetite for alternate investment approaches So this is really interesting for those who aren't aware the SEC the securities exchange commission has put together proposals for mandating SEC climate-related disclosures for organizations now Like any big process for example the ISS be consultation process that's currently open There is a common period and a push button and that leads to so there's been a lot of back and forth About these changes and there are of course people who are not in favor of any move towards Transparency coming in industry now the balance is going to be found somewhere in the two where the SEC is pushing for this It really believes in it on a personal level of its CEO as well as an Organizational level the market some players in the market are going to say hang on we don't want to Have to disclose or ESG data So the balance is going to be struck somewhere in the middle But what Tanya is saying that balance is going to be struck too far towards the side of business now What I think is interesting really and this is just my observation or my thinking on this I'm gonna blow myself up for a second is that The process here, you know the SEC people there's some of the criticism of the SEC proposed Disclosures has been well the SEC is a market regulator leave it to do its job of market regulation and the SEC by virtue of what it does is allied or Conceived of as being you know a critical part of the financial community Aka the establishment in the eyes of a lot of these Gen Z's and Millennials So I don't think it's it's necessarily About the that the pushback that they're going to be annoyed about the pushback I think it's more and this is a different slightly different point that they're going to see The SEC caving to that caving into this pushback in a reworked version of their proposals as being the ultimate proof That the SEC is in the back pockets of Wall Street, and therefore it's not a sufficiently independent actor via V Climate change. That's that's where I see the sort of the Disconnect that Tanya is talking about here and why these SEC rules that might in themselves not be sort of get people's Imagination or get them too fired up that this is why it's actually what she's saying is it's going to backfire I think on Millennials and Gen Gen Zers interest in ESG that they're going to see okay The SEC is finally going to do something about this. Wow cool Look at financial regulator actually getting directly involved in mandating transparency And then we're going to see a watered-down version of that those proposals actually get actioned and that's going to just turn People off it all together. That's basically the thrust of this article Back I go to my corner of the screen So that that's the dynamic that she points to and I think it's very interesting that Gen Z Millennials We're going to have more money to invest where the poorest generation. We've been Working and barely saving but at some point these two demographics are going to get a little capital boost By inheriting money from their parents and simultaneously We know already that they're very interested in sustainability in ESG But they're not going to like what they're seeing in terms of what how the ESG world morphs with with these future dynamics I think that's really about about as far as I wanted to say about it In fact, we can just end the video here because she talks about the and I think one of them If I just skip down a little bit more that they're going to become more activists investors This is her these are her five predictions that they're going to be getting involved in philanthropy So there's this interesting dynamic That Tanya Hester envisions in which she doesn't think now she's I obviously sort of have a bias Towards impact investing because of the fact that I work in the space So she she doesn't mention impact. Actually, there's one link You know regarding Traditional methods of giving philanthropy is being more effective than ESG So impact is not one of the Alternative investment approaches that she envisions as taking taking hold I think that it could be or I hope that it will be But she does make some other prognostics like for example that this generation are going to be more impact more activists investors More direct indexing options Greater availability of non-market investments I think that's that's it the fight the five trends So what I do think's interesting in this particular viewpoint is that she envisions You know we have if we look at ESG is this kind of new fangle dynamic that we're having these Traditional companies are saying oh, yeah, we do care about sustainability. We're going to be voluntarily for now compiling our own ESG data now perhaps mandated to do it and At the same time Uh, what we're actually what she forecast we're going to see is that these younger demographics are actually going to completely Disconnect are going to completely give up on ESG and this notion that the traditional uh, sort of uh, heavyweights or Bulwarks I'm fumbling for words here the traditional bastions upholding our system of capitalism as we know at the major market players the sec The s&p 500 the fortune 100 the big companies in america Driving the economy. We're going to give up on them We're not going we're going to stop this idea that the change is going to come from within the system And we're going to instead look and I say ironically because we're talking about these new generations Moving back towards legacy philanthropy And ignoring this concept that uh, ESG can sort of bring a sustainable the necessary Sustainability, uh, led values to the financial markets. Again, my bias is towards impact investing I think that impact can uh, can have the same benefit. I don't think we have to work through the ESG paradigm I agree with her that the traditional ESG paradigm is broken because it doesn't measure reliably Uh, but I don't think the solution is giving up on this whole idea of, uh, capitalism working for sustainability goals entirely I think the solution is saying that while this esg framework That's being proposed if it's going to be If it's going to allow for greenwashing impact washing Um, and partial disclosure is not going to be far enough. I don't think to use to use an old irish expression I don't think the solution is to throw it the baby. What's the bath? What bath water? I think that the solution is that we need to find a better way To bring uh to force the market and the market actors to uh to put a measurable reversal impact as part of the deal Um, anyway, I thought it was a great commentary in any event even if I may disagree with it one of its conclusions And I'll put a link in the description to the bloomberg piece because I always like to link the original And yeah, this is a very interesting space. I'll also put a link to the the the halibur al Uh conference happening in Tel Aviv on tuesday just in case they still have tickets And you're watching this video from israel. Thank you guys for watching more videos are coming soon