Tell me, what is the carbon premium? And in theory, what does that represent? Alex Edmans [00:01:14]: So what is the carbon premium is an easy question, which is the fact that stocks that emit more carbon have higher realized returns than stocks that emit little carbon. [...] So what are the risks of your company failing to be innovative or failing to have a good succession plan? There's lots of these other risks as well, and it might be that we want to require disclosure of them to investors as well. [...] Because you know that you are going to have to have disclosed the former and maybe not the latter. [...] So how do you think about how catastrophic climate risk prices linked to long term value? And is that not the factor that is so many more magnitudes bigger than the other risks that you outlined, and therefore should be separately considered? Alex Edmans [00:26:11]: Well, the argument they make, Alissa, is a compelling one. [...] How can smaller investors be helpful in saving the planet? And would they have incentives to sacrifice financial returns, even though they may not be able to affect long term outcomes of the economy and the health of the planet in which it's embedded? Alex Edmans [00:31:03]: The question that you ask is a very sensible one, and it's one that I've heard many times, is that large investors have syst.
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