Transcript
Live. From the ESG Tower and ESG City, it's a woke Wednesday edition of business pants. Joined as always, by ESG, lurking and Matt Morningstar riccardia, am I allowed to say that? No. I, Am working. I'm just, I just suck. I suck. You. Didn't write today's Like I might default when I forget the right something, because I suck that's terrible. He didn't want to repeat yesterday's. And today's triple Stitch denim bag called March 23rd 2022. Damion talks about stuff, Matt rant about climate, while in a climate control environment and Emma. Would you rather all over the floor and the wall? Serious on the wall, just the floor. Clean up after yourselves. Come on, see this. Person update. Howard Schultz's. Welcome back to Starbucks. Remember how we're Schultz is back, the first unionize, and a Seattle store just happened, and it was unanimous. Well, the store known as Broadway and Denny after the intersection, it sits on is just a 10 minute drive. From Howard Schultz, companies headquarters there on the Seattle. So do neighborhood. Is that right? Matt, so do what I've never heard of. So, no. Does that make believe? Yeah, there's no SoDo. I don't know what that is. Yes, yes. Yesterday's election is the first to be held following Howard Schultz's, announcement, that he would return for his third stint as CEO vowing to rebuild relationships with Baristas AKA busting. Some Union ass hug Baristas. Was he gonna hug them? A Starbuck's. Spokesperson said we are listening and learning from the partners in these stories as we always do across the country. From the beginning, we've been clear in our relief that we are better together as partners without a union between us and that conviction has not changed. But I love listening. I really do love listening. Starbucks, chair. Mellody Hobson wants to listen to She said last week. We made some mistakes. Here we didn't. Listen. And we need to do that. You know how else is listening Disney? oh, Paul Richardson Disney's Chief Human Resources officer. I do a man is a chief human resource officer. This, I don't really that pushes. Just beyond diversity for sure. Yeah, I'm not sure that's real, uh, ready for this. He said the company canceled, a leadership meeting in Orlando, and also canceled a planned diversity event scheduled for April. So Executives could spend their time listening. To employees. According to three Executives, who listened? To his presentation at the Town Hall, perfect. Canceling, a plan diversity of event. So they can spend time listening to their employees. Who are talking about things like, I don't know diversity. Oh well, I don't get that one. That that's a weird one. I'm not sure what. He's listening to his Walkman. That's what he meant listening. Okay? But maybe keep the plant diversity event. Don't cancel that one also. CEO ball Bob chapek and his senior leaders will conduct a global. Listening tour. oh, and Meet with employees in the United States and internationally. A global listening tour. Matt who do you think will be the opening act for that? One will be Nirvana. Maybe the Beatles. What about Jimi Hendrix? Yeah, I was hoping he go with ACDC but they're less dead. Is it? Is it me? Or when Starbucks says our belief that we're better together as partners with a union between us? Makes it sound a lot like can't we just stay boyfriend and girlfriend like or or boyfriend and boyfriend or girlfriend and girlfriend? Can't we just do that? Why do we have to like get married? Like what do we need? The marriage between us, it does sound like they want to know like its. It also sounds like they're being dumped. Like yeah, something like that. Someone's broken up with them but they're refused to leave the house. It's through all their stuff on the lawn. Look, I have a huge update for us. Are you ready? This week just got Bleecker for 75% of us listed companies. That's right, the SEC just announced a proposal. The US companies should be disclosing. How sucking dinosaur juice from the ground? Might actually contribute to Securities risk, it's the climate change disclosure rules. They just proposed it. It's a proposal. It's gonna be an open, comment period. Now which I highly suggest everyone comment even if you just comment and you write butt or whatever, just comment, it's for fun. Here's the Justice of the proposal. All right. Just is pretty, it's the high level. There's 500 and 30 plus pages of proposal. Number one companies will disclose their emissions scope one two and three. There's some carve outs and some stuff but the SEC actually listed some places you could learn about like, calculating your mission and what numbers are supposed to be out there. I read it and I thought ESG jobs baby because someone's gotta calculate this stuff. They all said they want those emissions verified or audited. They wanted some sort of like process to say these are accredited emissions. I don't know. It sounds like I we should all get new jobs. We should go do that. You should do that now. Just let everybody go apply number two. Companies will disclose some words about how they think about climate change. Short medium long-term words, strategy words business model words, basically something. More than a lawyer writing, we recognize climate change sucks. A little bit more discussion about what they actually think, how it's gonna affect them. Number three, the impact of climate change on their costs and stuff. I don't seems obvious number four. How climate change risk is managed. If at all, if it all with any Target set now like this the SEC is not saying it should be managed. They're just saying say if it is this is all just say some stuff. Okay. And my favorite It's the last one here. I'm saving for my favorite, which is who manages climate change risk. Putting the who back in. What the, who else have you been doing? You jerk? What do you mean? Who they want to know? Who is that it the proposal? Yes. The proposal actually says, they want to talk about the board members identified in charge of climate change. Risk board or committee ready? Okay. The proposal, like I said, is 530 plus pages long. I read it, I'm exhausted. It was like the shittiest, Harry Potter novel I've ever read. Which are you really was book? Two. I thought that was the worst. A lot of The Proposal is how, and where to disclose stuff. This is disclosure, this isn't prescriptive, it's just disclosure and sort of how to do it. Okay. But, there were two awesome sauce pieces of The Proposal in my, my opinion. My favorite part starts on page 100, and it's about board oversight. Here are the hot quotes and I do mean hot. Quote require a registrant to identify any board members or board committees responsible for the oversight of climate-related risks. Pop Quiz Damien over under. Yeah. Over under for the number of women, in black people who will be identified is it 100% 96%. Won't that? Just be like I'm guessing more more women than black people. It's just gonna be right? Isn't this the next like HR The head of HR. Absolutely. If it's the board version. Hot piece. Number two, quote, require a description of the processes and frequency by which the board or board committees discuss. Climate-related risk. Jesus stopped. The frequency is my favorite part, like, when, when the Carl showed up to the meeting and talked about how it was, like, way hotter last time using the Scottsdale Hilton, he's pretty sure he's got a sunburn. That counts, right? Count. It frequency. One climb, yeah, talked about it and don't forget the jokes in the winter when when the temperature goes up and it's like what, you know, like what about climate change frequency. And my favorite was quote, required disclosure of whether any member of the registration's board of directors has expertise in climate related, rest. Oh, there you go. They're just asking to disclose its like, I'm sure. They're just gonna say like Tony has a very good rated energy star refrigerator that counts as climate change risk, that's all they're looking. They might actually might, it's all the looking for This actually is my favorite for a simple reason. It is finally a litmus test of bullshit that we can measure. We hear it freefloat are measuring it. We created You know, we need more of this stuff to measure. Thank you. SCC created a measure of board member sabermetrics. Based on who they are, what they've done the roles they have that kind of stuff. We answer the question, who wins the room who's the most influential? It's win shares, but for boards does everyone look to the old guy with the ear hair whenever there's a bill big problem because he's like the son of the founder, or do they look to somebody else or is it like a galatian? How does it work in the room with the dynamic? We, we managed to get a number for this so we can say like Satya Nadella is worth 30% of the board decision making. That's a real number we really developed. We have it for every board in the entire world. Yeah, call us. Call us for that number, not just that number because what we can do with that number is described career performance on any number of metrics, like, how responsible is a board member for that decision to cut 20% of their employees, or who was responsible for keeping the molested CEO around. We can actually answer that. Now, it's not just some like, like, oh, it's the ephemeral board. We can say that. Dude, is responsible. Well, you saying what? I think what you're saying is the board is made up of individual people. Is that what you're saying? These are actual piece weird? Yes. Yeah. We're treating them like MBA teams and we could tell you who's actually good or loud, which is fitting because they all seem to have NBA degrees. So it's It's fitting. I like it. Nice. Oh, I don't know. I don't know. One of the things that we measured was carbon In fact, what we can tell you is we can tell you who are the low carbon directors, and the high carbon directors directors, who ruled over companies where carbon emissions went up and carbon is spewing all over the place. I'm going to give you right here. Yep. Three directors to watch, if they disclose, they are disclosed as carbon experts according to the SEC rules if these people I love how people this became a commercial. It's like an infomercial. I love this. Well, it's, I I'm blended it seem like he's gotta sell. Yeah, if these people are picked out as the client expert on the boards, as part of the SEC disclosure rules, that's your litmus test for bulshit, they're not that. Okay, ready. All right, ready? Ready? Yes. Let's start with Ronald Mittelstadt. He sits on the waist connections board. Please connections. What is that? I think you need a different name. That's like the worst quarter of like shit pipes. Can you just I think? That's right. I think that was the first name and they changed it to Waze connections. Robert middlestead has a lifetime 5% increase in carbon emissions to his name and we can blame him over that period for omitting the equivalent of all of Pepsi's emissions and 2020. That's right. Wow. Equals Pepsi worth of emissions that guy. I don't know that impressive. Okay, not ask him to reduce carbon. He doesn't know how how about Lawrence Chapman. Yes, chappie is a fellow McGill, Alum. You know, happy about that. He's the chair of the digital Realty board which if you think that's weird that the digital Realty board, which is like a tech company has high carbon, you'd be right. Chaps has the dubious distinction of having the highest influence and one point eight million. Tons of carbon to his name. In The Last Five Years, the equivalent of Home Depot chappie equals Home Depot in carbon emissions. you see what I'm doing here people, I am telling you How responsible individual people are on the board for a mission's. That's what I'm doing here. Chappie has only ever seen carbon go up. If someone says that guy's good at climate stuff, no, he's not. Last is Vicky. Halle Hall of vix is on the Lockheed Martin board. She's also the CEO of ikan and Buffett's favorite company. Occidental Petroleum. Oh yeah, yeah, they're buying a lot of that. Yeah, they're billions 5 billion. Yeah, she's got a solid 4% increase in carbon over time and can claim responsibility for a full year of Carnival Cruise equivalent emissions. Vicky sounds like a lot. Not a climate expert. Okay. That. Is my favorite part. I have more to say, but I don't want this show to go on 19 years because my favorite part, I'm gonna bring this up on Friday on the Friday show. Okay, one of my favorite Parts about this was Hester Peirce SEC, commissioner Hester, Peirce, his descent and I'm just gonna read you right now. Yeah, headline of The Descent. You ready? Okay. Huge props. This is best We are not the Securities and environment commission, at least, not yet. Hester Peirce got passive aggressive in the headline. That was the most. We are not the Securities and what's wrong with that. What's what she getting at? Which what would be so bad? Like She basically had a five-part descent and she's like, she cleverly, took the E and SEC security. Yeah, change and she swung it out environment, you see that, you see what we saw wrong? What would be so wrong? And then there's the dash, but then there's a dash. And it says, at least not yet like, yeah, why like, why are these responsible for anything? Why would we bother Responsible. This doesn't hold them responsible. This really just asked him to write some stuff down. Right. I know writing tools are hard to come by right now but that's all that. It really asks for there's a lot more to cover. We'll go to it on Friday but now right now Yeah, I really believe this is the beginning of the nutrition. Label Revolution for corporate existence. We will finally know that the number one ingredient. In a company is corn syrup. I'm so excited for it. Can I just say that we're leaving a lot of material on the table today? This is how, this is, how genius we are, because you just dropped a huge part of your story. I'm just, I'm dropping 550 words where I was gonna break down the, the leadership structures at Citi group. Match, group and Bumble. Oh, we'll get to these later. But look, I mean, look, what's even this stuff that we're not talking about is better than the stuff that everyone else is talking. That's what I'm trying and we have nothing to show you to prove it. Yeah. Okay. Let me end on this before we get to Emma to actually have a little fun around here. I wanted to report on this because I just have a call to action. deep fake meat provider, impossible Foods has named Peter McGinnis, as its CEO Peter McGinnis formerly of Shabani. That's right. The Greek yogurt A Founder. Pat Brown will step down from the CEO role. But stay on in a post titled Chief Visionary officer. Okay. Got it. That's the background. I can I do that here that I'm here to help you all out, because the article missed four very important things, okay? Four things, first, stop with this Chief Visionary officer. Bulshit that just sounds like keeping the founder around to collect a paycheck. So, okay, we're done Hester, get on that. That's like made us Sons made up Number two. I'm calling a mulligan here on Chobani pipeline, CEO hires, Listen People, 50% of leadership is Chobani are women, I know you're shocked, but yes, they are women. So the next Shabani pipeline CEO higher needs to not be a dude. Okay, here's a good choice. Michelle Brooks Chief strategy officer and Treasurer there. I made it easy for you. I like that. That was easy. Number three, the number three, the Chief Information officer at Chobani has the same name as the Twitter CEO agrawal. They call this a double parag with cheese. Oh, first and last Well first thing that's not a story. I'm a first name only because so here's my other call to action. After someone hires Michelle Brooks as CEO somewhere higher Prague, agrawal of Shabani as CEO somewhere else because we need to have two CEOs named parag agrawal. I'm not gonna explain why we just need that. Yeah, really just I didn't know I needed it but I do. And finally, the fourth thing this article Miss is that I love Greek yogurt. Not just because I'm half Greek. I just love? I love Greek yogurt. I can't believe that was in there. All right. That that's all I got help us. Back to a classic round of, would you rather? This is pants Edition. Yay. I am going to give you some, would you rather prompt based on today's headlines? And Matt, and Damien will make their choice about which one they would prefer. There is obviously correct answer that I will dictate and reveal once they have made their choices. Obviously I will read the headlines first and then I will give you the would you rather prompt as always? It can have any contextual questions. They are allowed to ask them but I retained the right to refuse to answer. I won't All right, I love this. I love that she gives us permission to ask questions. Yes. Number one here are the two headlines first headline. Number one Goldman Sachs CEO. DJ D Saul is playing a set at Lollapalooza. This summer adding to his list of high-profile DJ gigs. Headline. Number two. Yeah, well I'll pull. This is still exist. Yes, it does. The SEC. Won't free Elon Musk from his Twitter sitter and now for the prompt, would you rather? Be Elon musk's Twitter sitter for a week or go see every set. DJ diesel plays this year. That is your prompt. Oh, wow. So easy. That's so easy. Well, first of all, djd, saw is gonna be on an epic tour because he's opening on the listening tour for Disney, I think so. I I, yeah, because he so, he is providing a chance for others to listen, so he, he can't really listen. Oh, I guess he probably has headphones to listen on the tracks. He's actually selling like Futures. I think that's the way that works. I'm just glad that he's not busy in his day job. It doesn't sound like his day job is very challenged. He wants everybody to come back to the office because he thinks they're unproductive while he's at Lollapalooza spinning covid. Yeah. Ah, this is easy for me. I, I don't want to be anywhere near a sweaty Goldman Sachs CEO as he gets some kind of like weird nepotism spot in a, in a failed concert that existed when I was like a teenager, I don't, I don't want to be anywhere near that situation. I don't want anyone to Splatter me with their, their Molly induced hurl. Or I, in fact, I like being a Twitter sitter for a week. I'd like to be as permanent Twitter. I mean, I oh no, I'm willing. I'm willing like, I'm willing I am ready. Elon. I'm Ready. The exactly the opposite is the correct answer. Because there, it, I have three children. I do not need a fourth big baby. Billionaire, child who I have to be like Elon are, is that a phone in your? Put that phone down. Elon, Elon, maybe that they're getting older, but I must miss having little kids. That's why my kids are getting Older because you know you're gonna it's not so much just sit like watching him do it like he's gonna be up at like four in the morning doing it and you're gonna be in bed, you're gonna be trying to sleep and you're gonna like get an alert on your phone and it's a tweet that went out from Elon. You got to get up, you sign into his account, delete the tweet and then go into his room and say I said, go to bed. What are you still doing up at this hour? It's I I've done that already not with the Twitter, but with children, I'm dead. I'm out. I want, who's all all day. The correct answer is to be the Twitter sitter. There are two reasons for this. Number one is directly about me. So I've never been to a music festival and my first one. Could not possibly be to see DJ diesel. That feels like a crime against humanity, some degree. No, yes, no, it is terrible. Big crime and number two, nothing sounds more. Amazing to me than telling Elon Musk that he can't Tweet stuff and get paid for it. I'm with Damien on that front. It sounds great to me. I see that's I get me the second one so that we can we can get to a right. Number two here, the headlines, headline, number one, Captain of Russian oligarchs 85 million dollar. Super yacht stuck in Norway says crew is catching in barbecuing fish after local suppliers refused to refuel The Vessel. Headline. Number two. That sounds delightful, the manager of blue Origins rocket engine program has left the company. Here's your, would you rather, would you rather be the captain of a Russian oligarch super yacht? Or be the replacement manager of blue Origins rocket engine program. Oh one 100%, I don't even need to think super yacht. Like well really, yes, 100%. I know what I have. A little developed. A few I have an eye condition I have so I have my peripheral vision is diminished so I have a fear of parallel parking super Yachts. I do. I I so I don't know if I can only go forward. Can I have like a sub-captain? Do they have a sub-captain on a super yacht? Can I like a mini Captain? Like, okay. If I can have a sue Captain? Yeah, I think that would be called your first mate. Perhaps. Yeah, there you go. Okay. Okay. If I can have a suit Captain then I'm yeah, I'm gonna agree with Matt. I'm gonna go with that because I love having a barbecue in Norway. I've never happened, but I love the idea of it. The last thing I want is Uncle Jefe calling me up asking when the next space still does gonna launch with Pete Davidson in it? Yeah, because he wants a piece, I will. Yeah. I will add between between me and you and Hester Prince, sorry, Hester. Peirce I always think that's I don't actually know how to. I don't actually know how to build a rocket engine. I'm just laying it out there. You can disclose that in our proxy. Matt, I don't have any clue how to disclose just like it's time. 9% of rock US public directors, who don't have any climate risk, expertise just like them. I don't know how to build a rocket engine. There's that's, yeah, I'm with you. You are. What is the right answer? You are both correct. The answer is the yacht Captain because I would ultimately be less icky driving. A boat around for an olive Arc, then build Rockets to further. Enrich in oligarchy. They both are That's it. That's all I got for. Would you rather today Emma Emma? Yes, how do you your tub is a boat. That is not a boat. That's a super yard get over. How dare you call it a boat. That is Emma boat, lurking and Damien? I condition Raul's. I am Maddie. We Are People Media. If you like this, come back tomorrow. We're gonna have more nuggets for you, but we're also be here on Friday with a lot more to discuss. We'll talk to you, then goodbye.