WEBVTT

1
00:00:00.440 --> 00:00:02.160
- Hi, my name is Daniel Oehling.

2
00:00:02.160 --> 00:00:04.040
I'm a partner with BCG

3
00:00:04.040 --> 00:00:08.480
and I'm here today with
Fred Teo, CEO of GenZero.

4
00:00:08.480 --> 00:00:12.800
Fred, Temasek launched
GenZero in June, 2022

5
00:00:12.800 --> 00:00:15.000
with a very specific mission.

6
00:00:15.000 --> 00:00:16.760
Tell us a bit more about that.

7
00:00:16.760 --> 00:00:19.600
- Temasek has imposed a
double bottom line requirement

8
00:00:19.600 --> 00:00:21.160
on GenZero.

9
00:00:21.160 --> 00:00:24.040
That means that we have to
deliver financial returns

10
00:00:24.040 --> 00:00:26.480
above a certain cost of equity

11
00:00:26.480 --> 00:00:29.840
and we are also expected to
deliver positive climate impact.

12
00:00:29.840 --> 00:00:32.600
That means that we have to
be particularly thoughtful

13
00:00:32.600 --> 00:00:36.360
around the carbon
efficiency of our capital.

14
00:00:37.400 --> 00:00:39.400
When you deploy a million dollars,

15
00:00:39.400 --> 00:00:40.600
when you deploy a billion dollars,

16
00:00:40.600 --> 00:00:43.040
how much impact can you
actually achieve with that?

17
00:00:43.040 --> 00:00:47.000
And that is the reason why I
think we partnered up with BCG.

18
00:00:47.000 --> 00:00:48.680
- We have been fortunate to work together

19
00:00:48.680 --> 00:00:51.120
with you and your team
at GenZero to develop

20
00:00:51.120 --> 00:00:53.960
the GenZero climate impact
measurement framework.

21
00:00:53.960 --> 00:00:56.040
When we developed that framework together

22
00:00:56.040 --> 00:00:58.360
there were a number of considerations

23
00:00:58.360 --> 00:01:00.080
that we needed to take
into account, right?

24
00:01:00.080 --> 00:01:02.440
In your mind, what was the most important,

25
00:01:02.440 --> 00:01:05.600
most pressing topic here
that we had to take on?

26
00:01:05.600 --> 00:01:09.560
- I think that the most
important dimension

27
00:01:09.560 --> 00:01:11.280
of our impact measurement framework

28
00:01:11.280 --> 00:01:14.920
is really about being able
to establish credibility.

29
00:01:15.640 --> 00:01:17.680
And the reason why that is important

30
00:01:17.680 --> 00:01:21.160
is because we want to be particularly sure

31
00:01:21.160 --> 00:01:24.080
that the capital that we are
deploying actually results

32
00:01:24.080 --> 00:01:29.080
in very direct, measurable,
and tangible carbon impact.

33
00:01:29.840 --> 00:01:32.120
- You're not only about to
deliver financial returns

34
00:01:32.120 --> 00:01:35.680
but it's really also about
delivering climate impact.

35
00:01:35.680 --> 00:01:37.080
How does this translate

36
00:01:37.080 --> 00:01:38.760
into reality on your day-to-day life?

37
00:01:38.760 --> 00:01:41.120
- So there I think two parts to this.

38
00:01:41.120 --> 00:01:43.000
On the one hand, you need to consider

39
00:01:43.000 --> 00:01:45.240
what would be the potential carbon impact

40
00:01:45.240 --> 00:01:47.960
of your investments while
you're doing the due diligence,

41
00:01:47.960 --> 00:01:50.360
that means this is the
pre-investment phase.

42
00:01:50.360 --> 00:01:53.920
And that means understanding
the techno economic,

43
00:01:53.920 --> 00:01:55.680
you know, potential of
that particular solution.

44
00:01:55.680 --> 00:01:57.000
How cheap can it be?

45
00:01:57.000 --> 00:01:58.320
Is it actually scalable?

46
00:01:58.320 --> 00:01:59.840
What does success look like?

47
00:01:59.840 --> 00:02:02.320
If we are phenomenally successful

48
00:02:02.320 --> 00:02:05.600
and we are able to get a cost
down, would it be deployable?

49
00:02:05.600 --> 00:02:06.600
Who would deploy it?

50
00:02:06.600 --> 00:02:07.840
Who would pay?

51
00:02:07.840 --> 00:02:09.080
Is it sustainable?

52
00:02:09.640 --> 00:02:10.480
Then on the other hand,

53
00:02:10.480 --> 00:02:12.800
we also need to think about having metrics

54
00:02:12.800 --> 00:02:17.120
to be able to assess the
post-investment performance, right?

55
00:02:17.120 --> 00:02:20.160
So this is ongoing
monitoring and reporting

56
00:02:20.160 --> 00:02:22.680
of the performance of that
particular investment.

57
00:02:22.680 --> 00:02:25.080
So over and above financial returns

58
00:02:25.080 --> 00:02:27.640
which we will all need
as commercial investors

59
00:02:27.640 --> 00:02:29.440
it is particularly important to understand

60
00:02:29.440 --> 00:02:31.920
that for every marginal
dollar that we are deploying,

61
00:02:31.920 --> 00:02:35.280
that it is actually creating
maximum carbon impact.

62
00:02:35.280 --> 00:02:36.400
- And that's very inspiring

63
00:02:36.400 --> 00:02:38.400
and we are really delightful
to have been with you

64
00:02:38.400 --> 00:02:41.200
on this journey and been
able to make this, you know

65
00:02:41.200 --> 00:02:42.640
available to the product community.

66
00:02:42.640 --> 00:02:43.800
So thanks a lot again, Fred,

67
00:02:43.800 --> 00:02:46.400
for your time today and
looking forward to much more.