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This episode is sponsored by the new all electric Toyota bz. Have you thought about going electric but worry that charging will take forever? The myth is I'll need to charge my EV all day just to get where I'm going. The Truth with the new Toyota bz, charging is built for real life. With the included dual voltage charging cable, you can plug in overnight and wake up ready to go. And when you're on the move under ideal conditions, DC fast charging can get you from 10 to 80% in about 30 minutes. Just enough time to grab a coffee or catch up on a couple TED talks. That's power made practical. Learn more@toyota.com b z that's T O Y O-T A.com bz the new all electric bz Toyota let's go places. This episode is brought to you by LinkedIn. If you're a small business owner, work rarely stops. When the day ends, your business is always on. And when it's time to hire, you need a partner who's just as committed. That's where LinkedIn jobs comes in. When you clock out, LinkedIn clocks in. LinkedIn makes hiring simple. Post your job for free and share it with your network. Their new feature even helps write job descriptions and gets your posting in front of the right candidates with deep insights. Want more reach? Promoted jobs get three times more qualified applicants. Here's what matters most. Quality. Based on LinkedIn data, 72% of small businesses using LinkedIn said that it's helped them find high quality candidates. Find out why more than 2.5 million small businesses use LinkedIn for hiring and find your next great hire today. Post your job for free@LinkedIn.com TTD that's LinkedIn.com TTD to post your job for free. Terms and conditions apply. This episode is sponsored by Framer. If you've ever tried to build a website and felt boxed in by templates, you're not alone. Most no code tools promise flexibility but end up delivering compromise. That's where Framer comes in. Framer already built the fast, fastest way to publish beautiful production ready websites. And it's now redefining how we design for the web. With the recent launch of Design Pages, a free canvas based design tool, Framer is more than a site builder. It's a true all in one design platform. From social assets to campaign visuals to vectors and icons, all the way to a live site, Framer is where ideas go live, start to finish. Framer stands above the others because it's not just a site builder. Framer is a true design tool that also publishes professional production ready sites ready to design, iterate and publish all in one tool. Start creating for free@framer.com design and use code TED for a free month of Framer Pro. That's framer.com design promo code TED framer.com design promo code Ted rules and restrictions may apply. You're listening to TED Talks Daily where we bring you new ideas to spark your curiosity every day. I'm your host, Elise Hu. Could capitalism, which many believe has led us to the climate crisis we're in today, also be the thing that helps us out of it? In this talk, sustainability investor Steve Howard flips the lens to capitalism itself and wonders, can profit driven systems help to scale climate solutions at the speed we need? Steve says yes, but only if we dare to change the rules.
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How can capitalism help solve climate change? I'm Steve Howard. I'm Vice Chair Sustainability at global investment firm Tamasek. I've been wrestling with this question for about three decades. I was formerly I was Chief Sustainability Officer at ikea. I've helped set up several climate change organizations, WIMI Business Coalition, the Climate Group, and recently Tilt Collective. And I've come to conclusions that there are some real hard truths. The first hard truth Every business is a machine. They are hardwired and softwired to do what they do. That's why they're really good at it. Let me give you an example. About 15 years ago, I sat in the headquarters of a global car manufacturer with their chief technology officer. I said to him, surely the future is electric vehicles. He slapped the table and said, never while I am CTO will we make an electric vehicle. Now he's absolutely right, because he's no longer cto. Amazingly enough, I got a taxi the other day in one of that company's electric vehicles. But it's very easy to make that about him and his leadership. But I realized that day that in the buildings around us, there were hundreds of proud, skilled engineers who'd spent their careers making ever better internal combustion engines. The company had spent 100 years perfecting global supply chains for spark plugs and carburetors. This was an internal combustion engine vehicle company. And change for companies like these is incredibly hard. And many companies, from manufacturing to technology and even finance, are hardwired and softwired to do what they do. Now, of course there are exceptions, but they're exactly that. They're exceptions. And we're sorely mistaken if we think all companies will change themselves by themselves. My second truth is that financial markets are incredibly short term. The leader of a private bank said to me recently, steve, I've never met a long term investor. A hedge fund leader said to me, steve, you have to remember we're profit seeking creatures. I wake up in the morning and think how much profit will I make today? I go to bed at night and think how much profit did I make? So markets are baked in to pursue short term profit over long term value creation. The other thing is the free market has had a free ride. If you asked an economist in the room, they would talk about externalities. It's external to the market, but it's not external to people and the planet. These are the costs that are born of the impacts on nature, of pollution, the destruction of our habitats, the impact on human health, and of course, the dramatically escalating costs of climate change. They're not priced into the market. The companies don't pay the bill. Now, economists can debate the exact number, but we know they're in the trillions of dollars, the bill's mostly unpaid and it's rising by the day. So how do we go from short term to long term? It's a difficult thing to do. But if you're a long term investor, a large asset owner, a pension fund, a sovereign wealth fund, an endowment, a family office, then you're exposed to the total economy. The best guarantee of your long term financial success is economic growth itself. And we know an inclusive, resilient economy where we tackle climate change is the one with the best economic growth. Again, the numbers have been run time and time again on the impacts of unabated climate change. Cambridge University did one recently. Their estimate was unabated climate change will wipe out a quarter of global gdp. That's five Covid pandemics. And it's a pandemic that doesn't go away. So if you're a long term investor, if you're an asset allocator, a principal owner of capital, it's in your interest to invest in solving climate change. Not just in the easy things to do, but in the hard things to do with conviction. Capital. Now, at Temasek, we are a longer term investor. We just had our 50th anniversary. Our purpose is so that every generation prospers. We have stakes in some of the companies today that were the companies that we had when we started 50 years ago. But in order to align ourselves with climate change, we had to rewire ourselves. We had to measure carbon portfolio emissions, set carbon budgets, put an internal carbon price in, align our staff incentives with success, set those Targets engage all our portfolio companies and then we had to realign our strategies, reskill our investment teams, invest in new partnerships and new platform companies so that we had the capabilities to invest in the sustainable businesses of today and tomorrow. Now our portfolio of sustainability aligned investments is 40 billion Singapore dollars, up a lot from a few billion just a few years ago. It's growing and it's a start. This is a journey we're on, but we're well on the way. The third truth policy is a master switch. If we want to level the playing field for climate technologies, we need long, loud legal policies. This can unlock the investment and get innovators innovating long. If you have a technology that takes 10 years to develop, there's no use having a policy that's just one year long. You need it to last a full investment cycle. The policy must be loud, the signal must be unmissable. Legal means, it must have teeth. Compliance can't be optional. Now most businesses don't embrace policies, but they want clarity, they want a level playing field. And we know if we want a free market to be a fair market, policy is a master switch. And in this environment we could say actually we need all the countries, we need large countries to have policy and not to roll them back. But actually whether you're a city, a state, a smaller country, policy can be hugely powerful. Let's take the Singapore CO2 tax, the carbon tax in Singapore, that's provided a price signal, it's priced an externality. By putting a price on carbon, it's allowed the businesses in Singapore, including many of our portfolio companies, to turn long term targets into concrete actions and plans to decarbonize their business. They can create the business case because of that carbon price. It's also had a link to global carbon markets. And global carbon markets are going to be increasingly important over the next decade because you can meet some of your obligation for the TUX with international carbon credits. So it's allowed our own platform company, Gen Zero, to invest with greater confidence in projects that are removing and reducing emissions elsewhere. Nature based solutions, forest restoration projects. Policy can be a carrot as well as a stick. In Singapore, they went for super fast regulatory approval for plant based proteins and cell cultivated meats. If you're a startup, you measure time in days and weeks, not years. So being able to get to market quickly and meet your customers, test your products and get revenue in is invaluable. Singapore's become a hub for these companies now, but it's not just for startups that fast. Regulatory Approval and good planning is a big boon. It's for big infrastructure projects as well. Why be tied up for years if you can have effective fast planning? Then it gets green shovels in the ground and green investment flowing. My fourth truth is just a word. It's only one word and it's a really important one. Better. I learned this when I was in Ikea and I'm going to give you an example. When I started in Ikea, we had some LED lights. They were expensive, sales were limited and the light was still harsh and stark. But we knew because it was so much more energy efficient and the technology was developing, we knew they were the future. So we set a target for ourselves to go for 100% LEDs across the business. We aligned all our investments with ever better LEDs. We communicated across the supply chains. We used our own purchasing power to secure finance for new factories and production lines. When we got to the LED that was not just energy efficient, but was affordable with a great quality of light, the next best thing to daylight, they flew off the shelves and we hit our target of being able to only sell LEDs from 2015. When you get to better, you get scale really fast. So if you look at the total global lighting sector, in 2010 it was less than 1% LEDs, more than 99%. All the other types of light bulbs, by 2020 it was more than 60%. We flipped the entire sect global lighting sector that had been around for more than 100 years. In a decade when you get to better, you get to scale really fast. And we know that there are many other technologies that have got to better. They've moved from the green premium to the green discount. Solar, wind, batteries, storage. It's very exciting. And when you get to better, these technologies create platforms for business model innovation. Our impact investing partner Leapfrog has invested in a startup in India. It's a young startup. They're doing battery swapping stations for two wheeler drivers and auto rickshaw drivers. So rather than have a long queue to refuel, you can drive in in two minutes, your battery swapped out, it's a fixed price, you can have a cup of chai, you drive away. It's cleaner, it's cheaper, it's quieter, it's mechanically more efficient. The customers love it. They've got 75,000 drivers on their platform and growing. They're doing more than 3 million swaps a month. Now we know that there are many other areas where in emerging markets this business model innovation with these better technologies, pay as you go. Solar is A great example there. But capital is scarce. We need capital allocators to allocate capital for emerging markets. The other area where it's really hard to find finance is for those technologies that haven't achieved full commercial parity yet. The big industrial plants that are going for their first, second or third of a kind plant, sustainable aviation fuel, green hydrogen, green cement, green steel, those cell cultivated meats and plant based proteins. Now these industries, let's be clear, are the industries of the future. If you're an investor or a policymaker, you have to know they're the future and lean in behind them. And it will be cleaner, cheaper, better, faster, tastier future. Let's take one example. We have invested at Temasek for a long time in large real estate businesses. They're big users of steel, cement and concrete. If you take cement in the form of concrete, it's the second most abundant material we use after water. 30 billion tons a year, 8% of CO2. It's hyper commoditized, very slim margins, lots of sunk capital in cement factories around the world. It's hard to innovate, hard to transform. We've invested in a company that's got an end of pipe solution. Basically it's a bolt on technology that captures the CO2 that would otherwise cause climate change and pollute the atmosphere. It remineralizes it and incorporates it back in the cement so you get zero pollution and more cement. But you need patient capital behind these sort of companies. That company alone has taken 100,000 hours of R and D on the technology and it's going to need a lot of capital to roll that out across the cement industry. I have an ask. If you're a policymaker, let's go for long loud legal policy regimes. Let's make the free market a fair market, let's price externalities. But this is going to unlock a green industrial revolution in your economy. It's going to create the green jobs of the future. It's going to future proof your economies. If you're an asset allocator or you influence one, if you're in a pension fund, if you're in an endowment, a family office, a sovereign wealth fund elsewhere where you're allocating capital, take a pot of patient long term capital and put it behind climate change. Not just for the easy things to do, but for the hard things to do, it's in your interest to do it and you'll be backing the industries of the future. I know many of the people in that sector and I am talking to you. Remember the ask if you're an individual, then actually maybe you have a pension or some savings. Look at your provider. Ask them what their climate allocation is. If they don't have a great answer, move it somewhere else. If you're a business leader or an entrepreneur, embrace change, unlock opportunity, and go for better. Now, this won't be easy, but we've used this playbook before. Good government policy and incentives, business innovation and investment. We've ended acid rain. We've closed the ozone hole. We've harnessed the power of the sun and the wind to create the cheapest form of energy on the planet. And we have 5 billion years of sun reserves. We've also lit a billion homes with LEDs. And we have to remember humanity wrote the rule book. We've created all the markets, we've allowed externalities. We write all the policies, we've built all the machines. But if we rewire capitalism, we can help solve it. Climate Change thank you.
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That was Steve Howard at the TED Countdown Summit in Nairobi, Kenya in 2025. If you're curious about Ted's curation, find out more@ted.com curationguidelines and that's it for today. TED Talks Daily is part of the TED Audio Collective. This talk was fact checked by the TED Research team and produced and edited by our team, Martha Estefanos, Oliver Friedman, Brian Greene, Lucy Little and Tansika Songmarnivong. This episode was mixed by Christopher Faizy Bogan. Additional support from Emma Tobner and Daniela Balarazo. I'm Elise Hu. I'll be back tomorrow with a fresh idea for your feedback. Thanks for listening. TED Talks Daily is sponsored by Capital One in my house we subscribe to everything. Music, tv, even dog food. And it rocks. Until you have to manage it all. Which is where Capital One comes in. Capital One credit card holders can easily track, block or cancel recurring charges right from the Capital One mobile app at no additional cost. With one sign in, you can manage all your subscriptions all in one place. Learn more at Capital1.comsubscriptions Terms and Conditions apply. This episode is sponsored by the new all electric Toyota bz. A common myth is that switching to an electric vehicle means sacrificing capability or performance. The Toyota BZ proves otherwise. With available all wheel drive you can get 338 horsepower and near instant torque for a powerful response responsive drive going 0-60 mph in just 4.9 seconds. And with an EPA estimated range of up to 314 miles on front wheel drive models, you can go farther between charges and make the most of every drive. Learn more@toyota.com BZ that's T O Y-OTA.com BZ the new all electric BZ Toyota. Let's go places.
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Hi, I'm Adam Grant, host of the podcast Work Life. Did you know Paylocity offers one platform for HR finance and it that means innovative solutions like On Demand Payment which offers employees access to wages prior to payday, flexible time tracking features which enable staff to clock in through their mobile device and numerous other cutting edge integrations are available to all your teams in one single place. Learn more about how Paylocity can help streamline work and bring teams together. And@paylocity.com 1.