namaste we’ve all been following the discourse of how capitalism needs to
discourse of how capitalism needs to
discourse of how capitalism needs to change improve evolve we’ve gone from
change improve evolve we’ve gone from
change improve evolve we’ve gone from single bottom line profits to the triple
single bottom line profits to the triple
single bottom line profits to the triple bottom line of profits planet and people
bottom line of profits planet and people
bottom line of profits planet and people this triple bottom line has also now
this triple bottom line has also now
this triple bottom line has also now evolved into the quadruple bottom line
evolved into the quadruple bottom line
evolved into the quadruple bottom line of profits planet people and purpose
of profits planet people and purpose
of profits planet people and purpose we’re also seeing the convergence of
we’re also seeing the convergence of
we’re also seeing the convergence of ideas such as mindful capitalism
ideas such as mindful capitalism
ideas such as mindful capitalism thoughtful capitalism conscious
thoughtful capitalism conscious
thoughtful capitalism conscious capitalism social enterprises and so on
capitalism social enterprises and so on
capitalism social enterprises and so on in the world of capital where I spend a
in the world of capital where I spend a
in the world of capital where I spend a lot of my time these days we’ve seen an
lot of my time these days we’ve seen an
lot of my time these days we’ve seen an evolution of sustainable capitalism
evolution of sustainable capitalism
evolution of sustainable capitalism sustainability responsible investing
sustainability responsible investing
sustainability responsible investing socially responsible investing the
socially responsible investing the
socially responsible investing the United Nations in fact has put together
United Nations in fact has put together
United Nations in fact has put together something they call the principles of
something they call the principles of
something they call the principles of responsible investing which is a pretty
responsible investing which is a pretty
responsible investing which is a pretty deep broad framework with a rating
deep broad framework with a rating
deep broad framework with a rating system fairly detailed which guides how
system fairly detailed which guides how
system fairly detailed which guides how allocators of capital allocate money the
allocators of capital allocate money the
allocators of capital allocate money the funds what’s behind all this what’s
funds what’s behind all this what’s
funds what’s behind all this what’s driving all this the cycle of excessive
driving all this the cycle of excessive
driving all this the cycle of excessive consumption that we have seen over the
consumption that we have seen over the
consumption that we have seen over the last two decades has got to the point if
last two decades has got to the point if
last two decades has got to the point if the 7.5 billion people in the world
the 7.5 billion people in the world
the 7.5 billion people in the world consume average American it will take
consume average American it will take
consume average American it will take approximately 5.3 Earth’s to fulfill
approximately 5.3 Earth’s to fulfill
approximately 5.3 Earth’s to fulfill that just think about that more recently
that just think about that more recently
that just think about that more recently we have all experienced the ill effects
we have all experienced the ill effects
we have all experienced the ill effects of the global financial crisis that
of the global financial crisis that
of the global financial crisis that happened in 2007 2008 we all observe the
happened in 2007 2008 we all observe the
happened in 2007 2008 we all observe the underbelly the ugliness of what can
underbelly the ugliness of what can
underbelly the ugliness of what can happen with capitalism when it goes off
happen with capitalism when it goes off
happen with capitalism when it goes off the rails we’ve also seen in in our own
the rails we’ve also seen in in our own
the rails we’ve also seen in in our own environments personal environments how
environments personal environments how
environments personal environments how individuals have reacted with angst to
individuals have reacted with angst to
individuals have reacted with angst to what’s happening in the workplace
what’s happening in the workplace
what’s happening in the workplace today there’s a tremendous amount of
today there’s a tremendous amount of
today there’s a tremendous amount of stress his impact a well being not to
stress his impact a well being not to
stress his impact a well being not to mention the immense number of scandals
mention the immense number of scandals
mention the immense number of scandals coming out of the corporate world with
coming out of the corporate world with
coming out of the corporate world with executive pay you have some companies
executive pay you have some companies
executive pay you have some companies where CEOs are paid hundred x hundred
where CEOs are paid hundred x hundred
where CEOs are paid hundred x hundred times the lowest wage in their companies
times the lowest wage in their companies
times the lowest wage in their companies we’re seeing scandal after scandal in
we’re seeing scandal after scandal in
we’re seeing scandal after scandal in terms of lobbies that are ensuring that
terms of lobbies that are ensuring that
terms of lobbies that are ensuring that markets are distorted missing sexual
markets are distorted missing sexual
markets are distorted missing sexual harassment we’re seeing child labor
harassment we’re seeing child labor
harassment we’re seeing child labor missing exploitation of labour in very
missing exploitation of labour in very
missing exploitation of labour in very poor countries the point here is that
poor countries the point here is that
poor countries the point here is that evolution of capital is started to
evolution of capital is started to
evolution of capital is started to absorb these changes that are happening
absorb these changes that are happening
absorb these changes that are happening the other big push force is activism
the other big push force is activism
the other big push force is activism shoulders many of them individual retail
shoulders many of them individual retail
shoulders many of them individual retail shareholders environmental activists as
shareholders environmental activists as
shareholders environmental activists as well as active boards are starting to
well as active boards are starting to
well as active boards are starting to push back as well I’ve called a dharmic
push back as well I’ve called a dharmic
push back as well I’ve called a dharmic capitalism to me Darmok capitalism
capitalism to me Darmok capitalism
capitalism to me Darmok capitalism represents an end state perhaps a state
represents an end state perhaps a state
represents an end state perhaps a state of equilibrium of where capitalism can
of equilibrium of where capitalism can
of equilibrium of where capitalism can get to and will be sustainable Dharma to
get to and will be sustainable Dharma to
get to and will be sustainable Dharma to me which is where I derived the notion
me which is where I derived the notion
me which is where I derived the notion of Dharma capitalism Dharma means the
of Dharma capitalism Dharma means the
of Dharma capitalism Dharma means the purest form or the essence of something
purest form or the essence of something
purest form or the essence of something so dharmic capitalism represents the
so dharmic capitalism represents the
so dharmic capitalism represents the purest form of all the possibilities of
purest form of all the possibilities of
purest form of all the possibilities of capitalism that’s where we want to see
capitalism that’s where we want to see
capitalism that’s where we want to see this ultimately evolve to I’d like to
this ultimately evolve to I’d like to
this ultimately evolve to I’d like to share with you some of my experiences
share with you some of my experiences
share with you some of my experiences first as an entrepreneur and the 90s
first as an entrepreneur and the 90s
first as an entrepreneur and the 90s later as a corporate CEO in the mid
later as a corporate CEO in the mid
later as a corporate CEO in the mid 2000s and then as a partner in a global
2000s and then as a partner in a global
2000s and then as a partner in a global hedge fund in the late 2000s and finally
hedge fund in the late 2000s and finally
hedge fund in the late 2000s and finally today in my current avatar as a partner
today in my current avatar as a partner
today in my current avatar as a partner in a private equity firm back in the 90s
in a private equity firm back in the 90s
in a private equity firm back in the 90s it was the go-go days of growth I mean
it was the go-go days of growth I mean
it was the go-go days of growth I mean it was just about it was extremely
it was just about it was extremely
it was just about it was extremely exciting
exciting
exciting you saw the dot-com boom happening
you saw the dot-com boom happening
you saw the dot-com boom happening enterprises were in rapid pursuit of
enterprises were in rapid pursuit of
enterprises were in rapid pursuit of growth and profit
growth and profit
growth and profit and I was living in New York at that
and I was living in New York at that
and I was living in New York at that point I had co-founded and I was a CEO
point I had co-founded and I was a CEO
point I had co-founded and I was a CEO of a technology integration company we
of a technology integration company we
of a technology integration company we did a bunch of management consulting at
did a bunch of management consulting at
did a bunch of management consulting at the higher end working with Fortune
the higher end working with Fortune
the higher end working with Fortune thousand companies and we also then did
thousand companies and we also then did
thousand companies and we also then did some downstream work in terms of
some downstream work in terms of
some downstream work in terms of technology integration for enterprises
technology integration for enterprises
technology integration for enterprises but something started annoying me
but something started annoying me
but something started annoying me you know we realized that there was this
you know we realized that there was this
you know we realized that there was this she is happening and a lot of it was
she is happening and a lot of it was
she is happening and a lot of it was about fast money to speed speed speed we
about fast money to speed speed speed we
about fast money to speed speed speed we started to sense that there was
started to sense that there was
started to sense that there was something missing in terms of some
something missing in terms of some
something missing in terms of some intangible quality also at that time as
intangible quality also at that time as
intangible quality also at that time as a CEO I was pondering about you know I
a CEO I was pondering about you know I
a CEO I was pondering about you know I had these I should call it a
had these I should call it a
had these I should call it a transnational company we were too small
transnational company we were too small
transnational company we were too small to be called a multinational company in
to be called a multinational company in
to be called a multinational company in a very simple way I started to think
a very simple way I started to think
a very simple way I started to think about you know I grew up listening to a
about you know I grew up listening to a
about you know I grew up listening to a lot of jazz Shakti John McLoughlin
lot of jazz Shakti John McLoughlin
lot of jazz Shakti John McLoughlin meeting L Shankar and so on and I said
meeting L Shankar and so on and I said
meeting L Shankar and so on and I said hey how about east meets west and why
hey how about east meets west and why
hey how about east meets west and why don’t we think about profits and people
don’t we think about profits and people
don’t we think about profits and people and this was before you know the notion
and this was before you know the notion
and this was before you know the notion of the triple bottom line I’d evolved
of the triple bottom line I’d evolved
of the triple bottom line I’d evolved and had got documented in just an
and had got documented in just an
and had got documented in just an intuitive way we said we need to soften
intuitive way we said we need to soften
intuitive way we said we need to soften this a little bit and we came up with
this a little bit and we came up with
this a little bit and we came up with this idea of let’s combine the
this idea of let’s combine the
this idea of let’s combine the professionalism of Western organizations
professionalism of Western organizations
professionalism of Western organizations with the empathy that comes out of India
with the empathy that comes out of India
with the empathy that comes out of India you know almost Corning you would say
you know almost Corning you would say
you know almost Corning you would say but it worked really well because we
but it worked really well because we
but it worked really well because we realized that while people were hustling
realized that while people were hustling
realized that while people were hustling for getting business delivering business
for getting business delivering business
for getting business delivering business working with high-end clients doing
working with high-end clients doing
working with high-end clients doing transformational work there was this
transformational work there was this
transformational work there was this need for them to feel a sense of empathy
need for them to feel a sense of empathy
need for them to feel a sense of empathy at the end of a day’s work and one of
at the end of a day’s work and one of
at the end of a day’s work and one of the things we did in the company was we
the things we did in the company was we
the things we did in the company was we created a structure and we actually had
created a structure and we actually had
created a structure and we actually had people working closely and this is back
people working closely and this is back
people working closely and this is back in the mid 90s by the mid late 90s we’re
in the mid 90s by the mid late 90s we’re
in the mid 90s by the mid late 90s we’re talking about we actually dedicated
talking about we actually dedicated
talking about we actually dedicated resources so that people would have
resources so that people would have
resources so that people would have people to talk to so this is the people
people to talk to so this is the people
people to talk to so this is the people aspect of the quadruple bottom line the
aspect of the quadruple bottom line the
aspect of the quadruple bottom line the other important dimension to this was
other important dimension to this was
other important dimension to this was many of many of our employees out of
many of many of our employees out of
many of many of our employees out of India came from smaller towns and every
India came from smaller towns and every
India came from smaller towns and every single one of them was impacting 30 more
single one of them was impacting 30 more
single one of them was impacting 30 more lives so essentially we were starting to
lives so essentially we were starting to
lives so essentially we were starting to work with their causes in
work with their causes in
work with their causes in in villages and through this process we
in villages and through this process we
in villages and through this process we were able to have a very natural way of
were able to have a very natural way of
were able to have a very natural way of delivering a social impact as well
delivering a social impact as well
delivering a social impact as well through that process so this is back in
through that process so this is back in
through that process so this is back in the 90s cut to the mid 2000s I was
the 90s cut to the mid 2000s I was
the 90s cut to the mid 2000s I was turnaround CEO of a technology company
turnaround CEO of a technology company
turnaround CEO of a technology company again and this was again a very
again and this was again a very
again and this was again a very interesting company we’re doing a bunch
interesting company we’re doing a bunch
interesting company we’re doing a bunch of innovation we were building IP we
of innovation we were building IP we
of innovation we were building IP we were we were investing heavily in domain
were we were investing heavily in domain
were we were investing heavily in domain knowledge we had lots of bankers in the
knowledge we had lots of bankers in the
knowledge we had lots of bankers in the team it was a global company again and
team it was a global company again and
team it was a global company again and here I had I was older I was a little
here I had I was older I was a little
here I had I was older I was a little wiser and I was also thinking about how
wiser and I was also thinking about how
wiser and I was also thinking about how do we institutionalize something like
do we institutionalize something like
do we institutionalize something like this you know what what happened earlier
this you know what what happened earlier
this you know what what happened earlier was intuitive but this is a much larger
was intuitive but this is a much larger
was intuitive but this is a much larger company and we said let’s stand
company and we said let’s stand
company and we said let’s stand institutionalize this and I kind of
institutionalize this and I kind of
institutionalize this and I kind of leaned on my strategic thinking
leaned on my strategic thinking
leaned on my strategic thinking background and I said hey how about a
background and I said hey how about a
background and I said hey how about a strategic framework so we sort of
strategic framework so we sort of
strategic framework so we sort of applied the four-way framework to
applied the four-way framework to
applied the four-way framework to thinking about how could we generate a
thinking about how could we generate a
thinking about how could we generate a more sustainable entity so top-down
more sustainable entity so top-down
more sustainable entity so top-down bottom-up inside-out outside and that’s
bottom-up inside-out outside and that’s
bottom-up inside-out outside and that’s the four ways from a top-down
the four ways from a top-down
the four ways from a top-down perspective you know I had spent some
perspective you know I had spent some
perspective you know I had spent some time studying the Vedanta so I was
time studying the Vedanta so I was
time studying the Vedanta so I was thinking about leadership in the context
thinking about leadership in the context
thinking about leadership in the context of the Vedanta and I came up this notion
of the Vedanta and I came up this notion
of the Vedanta and I came up this notion of yogi leadership so who’s a yogi you
of yogi leadership so who’s a yogi you
of yogi leadership so who’s a yogi you know we all know about the hatha yoga
know we all know about the hatha yoga
know we all know about the hatha yoga and the asanas and so on but essentially
and the asanas and so on but essentially
and the asanas and so on but essentially a yogi is someone who’s connected with
a yogi is someone who’s connected with
a yogi is someone who’s connected with his or her higher sense far more aware
his or her higher sense far more aware
his or her higher sense far more aware of the higher potential that exists
of the higher potential that exists
of the higher potential that exists within each person so as the yogi you
within each person so as the yogi you
within each person so as the yogi you start to think about what’s my higher
start to think about what’s my higher
start to think about what’s my higher potential what’s my higher purpose and
potential what’s my higher purpose and
potential what’s my higher purpose and you start to try and build that
you start to try and build that
you start to try and build that awareness now it’s crucial for us to
awareness now it’s crucial for us to
awareness now it’s crucial for us to think about leadership like this
think about leadership like this
think about leadership like this especially in that context because what
especially in that context because what
especially in that context because what we wanted to do as a culture is we
we wanted to do as a culture is we
we wanted to do as a culture is we wanted to generate the power of
wanted to generate the power of
wanted to generate the power of leadership down the organization we
leadership down the organization we
leadership down the organization we wanted multiple leaders we did not want
wanted multiple leaders we did not want
wanted multiple leaders we did not want a feudal culture in the company where
a feudal culture in the company where
a feudal culture in the company where there was just a bunch of leaders and a
there was just a bunch of leaders and a
there was just a bunch of leaders and a bunch of instruction takers especially
bunch of instruction takers especially
bunch of instruction takers especially in a complex business environment the
in a complex business environment the
in a complex business environment the father and people you push the
father and people you push the
father and people you push the characteristics of leadership where
characteristics of leadership where
characteristics of leadership where people start to examine their own
people start to examine their own
people start to examine their own potential for growth
potential for growth
potential for growth their own sense of what is possible when
their own sense of what is possible when
their own sense of what is possible when they achieve a higher potential voila
they achieve a higher potential voila
they achieve a higher potential voila you actually see leadership start to
you actually see leadership start to
you actually see leadership start to blossom and develop that creates a very
blossom and develop that creates a very
blossom and develop that creates a very different sense of dynamic in terms of
different sense of dynamic in terms of
different sense of dynamic in terms of both competence people are starting to
both competence people are starting to
both competence people are starting to do great things they never thought it
do great things they never thought it
do great things they never thought it was possible because of the fact that
was possible because of the fact that
was possible because of the fact that they were thinking more deeply about
they were thinking more deeply about
they were thinking more deeply about this and we had created an environment
this and we had created an environment
this and we had created an environment to push leadership down so this from a
to push leadership down so this from a
to push leadership down so this from a top-down point of view it’s signaled
top-down point of view it’s signaled
top-down point of view it’s signaled that we were committed to building a
that we were committed to building a
that we were committed to building a wholesome organization where everybody
wholesome organization where everybody
wholesome organization where everybody could participate
could participate
could participate everybody could evolve to their
everybody could evolve to their
everybody could evolve to their potential from a bottom point of view it
potential from a bottom point of view it
potential from a bottom point of view it was a lot about culture I mean the big
was a lot about culture I mean the big
was a lot about culture I mean the big aspect here was purpose so we started to
aspect here was purpose so we started to
aspect here was purpose so we started to build a platform of social engagement
build a platform of social engagement
build a platform of social engagement and we realized that everybody has their
and we realized that everybody has their
and we realized that everybody has their own little passion somebody wants to
own little passion somebody wants to
own little passion somebody wants to help with poor people somebody wants to
help with poor people somebody wants to
help with poor people somebody wants to help with old people somebody wants to
help with old people somebody wants to
help with old people somebody wants to help with education some want to focus
help with education some want to focus
help with education some want to focus not disabled so we created this
not disabled so we created this
not disabled so we created this enterprise wide platform to allow people
enterprise wide platform to allow people
enterprise wide platform to allow people to express their beliefs in terms of
to express their beliefs in terms of
to express their beliefs in terms of what they would like to do in terms of
what they would like to do in terms of
what they would like to do in terms of social engagement now suddenly there’s
social engagement now suddenly there’s
social engagement now suddenly there’s this other dimension of engagement not
this other dimension of engagement not
this other dimension of engagement not only with the organization but also with
only with the organization but also with
only with the organization but also with their own higher sense of purpose so
their own higher sense of purpose so
their own higher sense of purpose so bottom-up dowsers culture right there
bottom-up dowsers culture right there
bottom-up dowsers culture right there was social engagement we empowered
was social engagement we empowered
was social engagement we empowered people we said take risks go get
people we said take risks go get
people we said take risks go get innovation is all in keeping with the
innovation is all in keeping with the
innovation is all in keeping with the top-down
top-down
top-down yoky leadership approach of trying to
yoky leadership approach of trying to
yoky leadership approach of trying to fulfill your higher potential inside-out
fulfill your higher potential inside-out
fulfill your higher potential inside-out obviously as a public company we were
obviously as a public company we were
obviously as a public company we were listed we had to you know ensure that
listed we had to you know ensure that
listed we had to you know ensure that our policy practices we had best
our policy practices we had best
our policy practices we had best practices policy procedures everything
practices policy procedures everything
practices policy procedures everything had to make sure that you know we were
had to make sure that you know we were
had to make sure that you know we were kosher in terms of governance at the
kosher in terms of governance at the
kosher in terms of governance at the same time aligned with the vision of the
same time aligned with the vision of the
same time aligned with the vision of the company outside in again a very
company outside in again a very
company outside in again a very important facet how do you create a
important facet how do you create a
important facet how do you create a culture where people have the strength
culture where people have the strength
culture where people have the strength of character the strength of purpose to
of character the strength of purpose to
of character the strength of purpose to receive feedback it’s a tough world out
receive feedback it’s a tough world out
receive feedback it’s a tough world out there you’re getting beaten by
there you’re getting beaten by
there you’re getting beaten by competition the clients are beating you
competition the clients are beating you
competition the clients are beating you up you’re you know if you have a
up you’re you know if you have a
up you’re you know if you have a 360-degree assessment process
360-degree assessment process
360-degree assessment process everybody’s beating you up so the
everybody’s beating you up so the
everybody’s beating you up so the ability and the strength of character
ability and the strength of character
ability and the strength of character and purpose to receive feedback and
and purpose to receive feedback and
and purpose to receive feedback and apply it in a very meaningful way again
apply it in a very meaningful way again
apply it in a very meaningful way again helped the process of creating an
helped the process of creating an
helped the process of creating an evolved organization so here we what
evolved organization so here we what
evolved organization so here we what what did we do we essentially take the
what did we do we essentially take the
what did we do we essentially take the profits box obviously we’re public
profits box obviously we’re public
profits box obviously we’re public company the people box as well as
company the people box as well as
company the people box as well as purpose implemented dharmic for a
purpose implemented dharmic for a
purpose implemented dharmic for a sustainable approach to an enterprise my
sustainable approach to an enterprise my
sustainable approach to an enterprise my next experience is actually very
next experience is actually very
next experience is actually very different I joined a hedge fund as a
different I joined a hedge fund as a
different I joined a hedge fund as a partner in New York and this is a very
partner in New York and this is a very
partner in New York and this is a very interesting hedge fund because what we
interesting hedge fund because what we
interesting hedge fund because what we were doing is we were building a
were doing is we were building a
were doing is we were building a platform a software platform to
platform a software platform to
platform a software platform to implement financial economics ideas
implement financial economics ideas
implement financial economics ideas systematically systematically meant the
systematically systematically meant the
systematically systematically meant the CIO doesn’t make any manual calls the
CIO doesn’t make any manual calls the
CIO doesn’t make any manual calls the platform decides it spits out the model
platform decides it spits out the model
platform decides it spits out the model portfolio and you invest and you do a
portfolio and you invest and you do a
portfolio and you invest and you do a stock picking based on that obviously
stock picking based on that obviously
stock picking based on that obviously the research guys are extraordinary guys
the research guys are extraordinary guys
the research guys are extraordinary guys you know we had like a team of about 15
you know we had like a team of about 15
you know we had like a team of about 15 people from the top schools in the u.s.
people from the top schools in the u.s.
people from the top schools in the u.s. mostly PhDs in either financial
mostly PhDs in either financial
mostly PhDs in either financial economics finance or economics
economics finance or economics
economics finance or economics behavioral finance we combined all these
behavioral finance we combined all these
behavioral finance we combined all these ideas and you know you probably heard
ideas and you know you probably heard
ideas and you know you probably heard the word alpha it is all about
the word alpha it is all about
the word alpha it is all about generating alpha how do you beat the
generating alpha how do you beat the
generating alpha how do you beat the market at the same time there was a
market at the same time there was a
market at the same time there was a there was a degree of churn within the
there was a degree of churn within the
there was a degree of churn within the fund we’re thinking hey is this all you
fund we’re thinking hey is this all you
fund we’re thinking hey is this all you know we’ve got this amazing platform
know we’ve got this amazing platform
know we’ve got this amazing platform we’ve got these at MIT computer
we’ve got these at MIT computer
we’ve got these at MIT computer scientists who helped us build this
scientists who helped us build this
scientists who helped us build this capability almost like an expert system
capability almost like an expert system
capability almost like an expert system in financial economics let’s do
in financial economics let’s do
in financial economics let’s do something a little more meaningful so we
something a little more meaningful so we
something a little more meaningful so we brought up this idea of sustainability
brought up this idea of sustainability
brought up this idea of sustainability investing into a systematic plan so what
investing into a systematic plan so what
investing into a systematic plan so what did we do now typically sustainability
did we do now typically sustainability
did we do now typically sustainability is standing on three pillars
is standing on three pillars
is standing on three pillars environmental pillar social pillar and
environmental pillar social pillar and
environmental pillar social pillar and the governance pillar so you think about
the governance pillar so you think about
the governance pillar so you think about this ESG there’s an ability for us to
this ESG there’s an ability for us to
this ESG there’s an ability for us to look at public companies there’s a lot
look at public companies there’s a lot
look at public companies there’s a lot of data out there and try and assess
of data out there and try and assess
of data out there and try and assess which companies are scoring high on ESG
which companies are scoring high on ESG
which companies are scoring high on ESG parameters which companies are scoring
parameters which companies are scoring
parameters which companies are scoring low now we have the job to build a
low now we have the job to build a
low now we have the job to build a portfolio that will go long and short on
portfolio that will go long and short on
portfolio that will go long and short on stocks so we said let’s do this
stocks so we said let’s do this
stocks so we said let’s do this we’ll take companies that are high on
we’ll take companies that are high on
we’ll take companies that are high on ESG parameters and we allocate more
ESG parameters and we allocate more
ESG parameters and we allocate more money to some companies that are
money to some companies that are
money to some companies that are actually are scoring high the reason is
actually are scoring high the reason is
actually are scoring high the reason is because we believed the most sustainably
because we believed the most sustainably
because we believed the most sustainably aware an organization is the better they
aware an organization is the better they
aware an organization is the better they will do in terms of profits that is a
will do in terms of profits that is a
will do in terms of profits that is a fundamental belief so you go long
fundamental belief so you go long
fundamental belief so you go long you allocate more money to companies
you allocate more money to companies
you allocate more money to companies with high
with high
with high is G scores on the other side you had
is G scores on the other side you had
is G scores on the other side you had companies with terrible ESG scores
companies with terrible ESG scores
companies with terrible ESG scores violating environment norms you could
violating environment norms you could
violating environment norms you could clearly see their no commitment to
clearly see their no commitment to
clearly see their no commitment to social practices governance patchy we
social practices governance patchy we
social practices governance patchy we said okay we can do two things with them
said okay we can do two things with them
said okay we can do two things with them one is we can short them or we can
one is we can short them or we can
one is we can short them or we can eliminate them from our portfolio so in
eliminate them from our portfolio so in
eliminate them from our portfolio so in a very interesting way and these are
a very interesting way and these are
a very interesting way and these are large public companies in America that
large public companies in America that
large public companies in America that we said let’s influence the idea of
we said let’s influence the idea of
we said let’s influence the idea of sustainability and through the search
sustainability and through the search
sustainability and through the search fund platform we were able to do this
fund platform we were able to do this
fund platform we were able to do this interestingly at that time Al Gore and a
interestingly at that time Al Gore and a
interestingly at that time Al Gore and a bunch of people put together a company
bunch of people put together a company
bunch of people put together a company called generation capital to demonstrate
called generation capital to demonstrate
called generation capital to demonstrate to the world that actually you could
to the world that actually you could
to the world that actually you could attract capital and today when you see
attract capital and today when you see
attract capital and today when you see there is a notion called impact
there is a notion called impact
there is a notion called impact investing it’s come a long way by the
investing it’s come a long way by the
investing it’s come a long way by the way sustainable investing is actually
way sustainable investing is actually
way sustainable investing is actually traversed impact investing has started
traversed impact investing has started
traversed impact investing has started to become fairly mainstream a lot of
to become fairly mainstream a lot of
to become fairly mainstream a lot of allocators of capital now we will say we
allocators of capital now we will say we
allocators of capital now we will say we want to express our beliefs through our
want to express our beliefs through our
want to express our beliefs through our money so when I invest it’s not of
money so when I invest it’s not of
money so when I invest it’s not of course I want the profit of course I
course I want the profit of course I
course I want the profit of course I want the return but they also know as
want the return but they also know as
want the return but they also know as very savvy people that the volatility of
very savvy people that the volatility of
very savvy people that the volatility of their investments and the risk in their
their investments and the risk in their
their investments and the risk in their investments is lower when you invest
investments is lower when you invest
investments is lower when you invest through an impact framework because I
through an impact framework because I
through an impact framework because I didn’t you’re investing in companies
didn’t you’re investing in companies
didn’t you’re investing in companies that can actually sustain themselves
that can actually sustain themselves
that can actually sustain themselves more meaningfully in the long term so
more meaningfully in the long term so
more meaningfully in the long term so that was the experience that we had and
that was the experience that we had and
that was the experience that we had and we tried to engage so we ticked planet
we tried to engage so we ticked planet
we tried to engage so we ticked planet ESG we take people we take the notion of
ESG we take people we take the notion of
ESG we take people we take the notion of profits obviously when it was a hedge
profits obviously when it was a hedge
profits obviously when it was a hedge fund purpose not quite there in this
fund purpose not quite there in this
fund purpose not quite there in this experience so cut to my current
experience so cut to my current
experience so cut to my current situation where like I said I’m a
situation where like I said I’m a
situation where like I said I’m a partner in a private equity firm our
partner in a private equity firm our
partner in a private equity firm our focus is investing in companies in India
focus is investing in companies in India
focus is investing in companies in India but there’s one passion that binds us
but there’s one passion that binds us
but there’s one passion that binds us which is how do we how do we change the
which is how do we how do we change the
which is how do we how do we change the businesses that we invest in so our
businesses that we invest in so our
businesses that we invest in so our philosophy is essentially growth capital
philosophy is essentially growth capital
philosophy is essentially growth capital so we come in when the company is gone
so we come in when the company is gone
so we come in when the company is gone beyond its survival risk and we look at
beyond its survival risk and we look at
beyond its survival risk and we look at sectors that will actually align with
sectors that will actually align with
sectors that will actually align with our experience and then we start to
our experience and then we start to
our experience and then we start to express ourselves in terms of how can
express ourselves in terms of how can
express ourselves in terms of how can difference beyond that so first point
difference beyond that so first point
difference beyond that so first point how do we choose our sectors we
how do we choose our sectors we
how do we choose our sectors we eliminate sectors that pollute we
eliminate sectors that pollute we
eliminate sectors that pollute we eliminate sin sectors as they are called
eliminate sin sectors as they are called
eliminate sin sectors as they are called right tobacco alcohol a whole bunch of
right tobacco alcohol a whole bunch of
right tobacco alcohol a whole bunch of other related stuff we eliminate sin
other related stuff we eliminate sin
other related stuff we eliminate sin sickness we target sectors on the
sickness we target sectors on the
sickness we target sectors on the positive side that actually have a
positive side that actually have a
positive side that actually have a positive impact on the environment
positive impact on the environment
positive impact on the environment so we target clean tech so negatively we
so we target clean tech so negatively we
so we target clean tech so negatively we have an approach and we also take a
have an approach and we also take a
have an approach and we also take a positive constructive approach from the
positive constructive approach from the
positive constructive approach from the standpoint of the people dimension a big
standpoint of the people dimension a big
standpoint of the people dimension a big part of what we do is essentially mentor
part of what we do is essentially mentor
part of what we do is essentially mentor and engage with the leadership team of
and engage with the leadership team of
and engage with the leadership team of the companies in Weston and what we
the companies in Weston and what we
the companies in Weston and what we really want to nurture is enlightened
really want to nurture is enlightened
really want to nurture is enlightened leadership here because we really
leadership here because we really
leadership here because we really believe that enlightened leadership
believe that enlightened leadership
believe that enlightened leadership through a mentoring process can unleash
through a mentoring process can unleash
through a mentoring process can unleash tremendous positive forces through the
tremendous positive forces through the
tremendous positive forces through the enterprise so we actually engage is 360
enterprise so we actually engage is 360
enterprise so we actually engage is 360 degrees we go beyond strategy we you
degrees we go beyond strategy we you
degrees we go beyond strategy we you know we help hire people we only get
know we help hire people we only get
know we help hire people we only get them to do best practices and the
them to do best practices and the
them to do best practices and the innovation the whole point is to get
innovation the whole point is to get
innovation the whole point is to get them to go to the next level so from a
them to go to the next level so from a
them to go to the next level so from a people point of view does a tremendous
people point of view does a tremendous
people point of view does a tremendous amount of commitment that we have
amount of commitment that we have
amount of commitment that we have through this process and finally in
through this process and finally in
through this process and finally in terms of purpose you know all of us are
terms of purpose you know all of us are
terms of purpose you know all of us are doing so many things in terms of
doing so many things in terms of
doing so many things in terms of policymaking mentoring beyond our
policymaking mentoring beyond our
policymaking mentoring beyond our portfolios and we’re engaging with
portfolios and we’re engaging with
portfolios and we’re engaging with various ecosystems directly through the
various ecosystems directly through the
various ecosystems directly through the founders of our companies as well and
founders of our companies as well and
founders of our companies as well and through this process we are not only
through this process we are not only
through this process we are not only discovering more purpose for what we do
discovering more purpose for what we do
discovering more purpose for what we do but we’re also ensuring that people have
but we’re also ensuring that people have
but we’re also ensuring that people have the ability to express a higher purpose
the ability to express a higher purpose
the ability to express a higher purpose for what they do and I think just being
for what they do and I think just being
for what they do and I think just being aware of it and engaging in these
aware of it and engaging in these
aware of it and engaging in these concepts with the people that you work
concepts with the people that you work
concepts with the people that you work with was a very long way
with was a very long way
with was a very long way obviously profits you know we are a
obviously profits you know we are a
obviously profits you know we are a private equity fund we’ve got investors
private equity fund we’ve got investors
private equity fund we’ve got investors we have a mandate we have a duty to
we have a mandate we have a duty to
we have a mandate we have a duty to investors we got to do that but again
investors we got to do that but again
investors we got to do that but again you manage now to really take you know
you manage now to really take you know
you manage now to really take you know all four boxes of what we talked about
all four boxes of what we talked about
all four boxes of what we talked about earlier as the quarter the bottom line
earlier as the quarter the bottom line
earlier as the quarter the bottom line here so friends you know essentially
here so friends you know essentially
here so friends you know essentially capitalism has to change from within I
capitalism has to change from within I
capitalism has to change from within I think we all recognize that we have the
think we all recognize that we have the
think we all recognize that we have the think tanks we have the academics we
think tanks we have the academics we
think tanks we have the academics we have the institutions that can give us
have the institutions that can give us
have the institutions that can give us research data constructs frame
research data constructs frame
research data constructs frame to trigger our conscience as well as
to trigger our conscience as well as
to trigger our conscience as well as focus our consciousness but ultimately
focus our consciousness but ultimately
focus our consciousness but ultimately it’s up to us to act based on our
it’s up to us to act based on our
it’s up to us to act based on our beliefs thank you
beliefs thank you
beliefs thank you [Applause]
”
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