Author 1 October 19, 2018 Professor Frank Werner Sustainable Finance Speaker Summary: Alexis Schwartz- Bloomberg In Alexis’s speech about Bloomberg, she discussed the importance of ESG, or environmental social governance. While ESG means different things to different people, it can be described as a “catch-all term covering Environmental, Social and Governance issues perceived to be relevant to company performance, risk, profitability and overall existence.” While many investors had not thought about ESG in the past, 18% of current investors are thinking about adding ESG to their portfolio due to its stable growth. Of millennials, 37% currently own ESG stock, while 40% are interested in adding to their portfolio. Even when the overall market isn’t doing well, high ESG stocks tend to do better because they are considered investments with a smart beta strategy. With the smart beta strategy, annual returns proved to be higher when a portfolio introduced an ESG stock. One thing Alexis stressed was the importance of materiality and transparency in relation to ESG. Materiality is factors that are closely related to the profits of a business and is specific to each company depending on their industry. After the recession in 2008, materiality became a key factor when investing in stocks. People were insecure about investing in companies because they feared the companies were doing unethical things. They also wanted the companies to be able to survive another recession, so the key to investing was strong companies. Companies with a higher ESG score were more likely to survive in the environment, so these companies thrived. One thing Alexis said that I found interesting is that as millennials come into power, they influence the way the stock market works. She said that even though the majority of high schoolers are not investing in the stock market, they are having an influence on whether companies are adding companies that encourage gun usage to their exclusion list. An exclusion list is ideals that a person may not agree with and therefore choose to not invest in associations with them (ex: The Catholic Church would not invest in any companies that support abortion). While exclusion lists are the most popular sustainable investment policy, ESG integration is second. As millennials, we are more aware of the environmental problems the world is facing, and we are able to prioritize ESG when investing in the market. I think ESG will become as important to my generation as exclusion lists. Bloomberg began covering the ESG product in 2009, covering about 3,800 companies. From 2009 to now, the data set has grown from 72 to over 900 fields. More than 12,242 customers use the ESG data. The data most used include governance, executive compensation, and environmental data. I think it is important that Bloomberg has taken initiative in gathering data for ESG and making it an important factor to help investors make better informed decisions on the companies.

1. Author 1
October 19, 2018
Professor Frank Werner
Sustainable Finance
Speaker Summary: Alexis Schwartz- Bloomberg
In Alexis’s speech about Bloomberg, she discussed the
importance of ESG, or environmental social governance. While
ESG means different things to different people, it can be
described as a “catch-all term covering Environmental, Social
and Governance issues perceived to be relevant to company
performance, risk, profitability and overall existence.” While
many investors had not thought about ESG in the past, 18% of
current investors are thinking about adding ESG to their
portfolio due to its stable growth. Of millennials, 37% currently
own ESG stock, while 40% are interested in adding to their
portfolio. Even when the overall market isn’t doing well, high
ESG stocks tend to do better because they are considered
investments with a smart beta strategy. With the smart beta
strategy, annual returns proved to be higher when a portfolio
introduced an ESG stock.
One thing Alexis stressed was the importance of
materiality and transparency in relation to ESG. Materiality is
factors that are closely related to the profits of a business and is
specific to each company depending on their industry. After the
recession in 2008, materiality became a key factor when
investing in stocks. People were insecure about investing in
companies because they feared the companies were doing
unethical things. They also wanted the companies to be able to
survive another recession, so the key to investing was strong
companies. Companies with a higher ESG score were more
likely to survive in the environment, so these companies
thrived.
One thing Alexis said that I found interesting is that as

2. millennials come into power, they influence the way the stock
market works. She said that even though the majority of high
schoolers are not investing in the stock market, they are having
an influence on whether companies are adding companies that
encourage gun usage to their exclusion list. An exclusion list is
ideals that a person may not agree with and therefore choose to
not invest in associations with them (ex: The Catholic Church
would not invest in any companies that support abortion). While
exclusion lists are the most popular sustainable investment
policy, ESG integration is second. As millennials, we are more
aware of the environmental problems the world is facing, and
we are able to prioritize ESG when investing in the market. I
think ESG will become as important to my generation as
exclusion lists.
Bloomberg began covering the ESG product in 2009,
covering about 3,800 companies. From 2009 to now, the data set
has grown from 72 to over 900 fields. More than 12,242
customers use the ESG data. The data most used include
governance, executive compensation, and environmental data. I
think it is important that Bloomberg has taken initiative in
gathering data for ESG and making it an important factor to
help investors make better informed decisions on the companies
they are investing in.
Author 2
Speaker Summary – Alexis Schwartz
19 October 2018
Alexis Schwartz came to our class and talked to us about
the role Bloomberg was playing in the field of sustainability.
She noted Bloomberg’s commitment to sustainability and the
advancements they have made to ensure that companies are

3. properly keeping track of their own efforts to remain
sustainable. The Bloomberg terminal is an extremely powerful
tool to use for anything business related, and this includes the
topic of sustainability.
Alexis started by talking about the many different definitions of
ESG ( Environmental, Social, and Governance) and how this
affected how companies recorded it. One point Alexis
emphasized throughout her talk was the trends towards investors
caring about ESG.
In the past, Alexis noted that investors looked at exclusion
lists as a way to be a responsible investor. Inclusion lists
referred to ETF’s that did not include companies that dealt with
things such as weapons, drugs, and other things of that nature.
Up until recently, that was largely the only criteria that
mattered to be considered a responsible investor. Alexis noted
exclusion lists were the #1 ranked sustainable investment
policy. The current trends have shown that ETF’s that are
focused on the ESG of companies have become more popular
and they were ranked #2 on the sustainable investment policy
rankings, despite only being introduced in the last couple
decades. The reason for their popularity is not only because of
their positive socio-economic effect either. Along with the main
narrative of this class, ETFs that have a focus on ESG are also
providing positive returns for investors. One of the most
valuable traits about these ETFs is that they tend to have less
volatility than ETFs that do not focus on ESG. Alexis noted that
this is one way companies are able to manage their risk. With
the economy expected to go into a recession at some point in
the next couple years, ETFs with higher focuses on ESG can be
expected to have less volatility, making them more valuable
during times of a recession.
Using Bloomberg as a tool can be useful to anyone looking
to prepare for a job, as Alexis noted, or anyone in a job looking
to find extra information. The amount of data that is kept on
Bloomberg is invaluable, especially when it comes to
sustainability. Alexis went over Bloomberg’s ESG function

4. (BESG) which broke down companies and tracked different
areas of their sustainability. Bloomberg is helping to make the
term of ESG more comparable across companies so that
investors have a better idea of what ESG really means on a
company-to-company basis. One thing that Alexis talked about
that I thought was fascinating was the fact that Bloomberg was
able to warn Equifax about their security breach a year before it
actually happened. They were able to figure this out based on
the information provided by the company and their internal
analysis of the information. She also took us through a simple
analysis of Abbvie, a company that on the surface looked like it
was relatively safe. Through her analysis, Alexis was able to
uncover concerns regarding their main drug, Humira, and their
dangers to their global sales.
Bloomberg sees the importance of sustainable
responsibility and the actions they have taken to incorporate it
into their software shows their recognition. As we continue to
point out in class, sustainable investing is socially responsible
and profitable. Bloomberg is helping investors take note of this
and take advantage of it.
Author 3
Professor Werner
Sustainability and Finance
Speaker Reflection
19 October 2018
Bloomberg & ESG- Alexis Schwartz
Alexis Schwartz’s presentation about her work at
Bloomberg was fascinating. I had no idea that there was such a
large outlet for sustainability focused jobs. I also have a great
appreciation for Bloomberg’s ESG functions. Her presentation
was engaging, informative and inspiring. I really appreciated
her enthusiasm and varied experience with sustainability.
Similar to our previous speakers, I found myself thinking about
the future application that this information could have on my

5. job and company next year. I am excited to become involved
with J.P. Morgan’s sustainability efforts. Alexis’ presentation
and information detailed the data driven and organization of
companies in a way that really aided my understanding of how
to understand, find and utilize sustainability data.
Alexis highlighted the extreme importance of materiality
and transparency. She defined materiality as the data points that
Bloomberg has decided to make a difference in a company’s
sustainable performance on a sub industry level. There are
countless fields that the data could be categorized into, however
there is a large discrepancy in the validity of the data. Although
a lot of companies have started to partake in Corporate
Sustainability reporting, there is no standard for reporting and
as Alexis discussed the sources of reporting and data are hard to
decipher. The transparency of the data is crucial. A company
could be operating with extreme efficiency and sustainability
but if the company does not openly and succinctly report their
work, it is near impossible to validate and affirm the companies
great work. The concept of materiality and transparency are
vital to the beginnings of sustainability reporting and as Alexis
explained are key elements within her career.
I appreciated Alexis’ references on how to market and sell
sustainability to businesses and enterprises who may be overly
concerned with profitability. Her research, data and facts
support that sustainability and ESG (Environmental Social
Governance) has great positive correlation to profit and will
continue to have an even stronger positive relationship. Even
for those who do not yet appreciate the global affects, there is
proof that ESG research and investing increases return and
profit. Alexis talked about how there is increased risk and
volatility of companies and investments that have poor ESG
ratings. High ESG ratings are indicative of a good long-term
investment, especially within ETFs.
Another topic that I found very interesting that Alexis
mentioned towards the beginning of her presentation was in
reference to what our current society sees as moral and immoral

6. for a company and person. She mentioned that the money will
follow the next generations perception of what is wrong and
what is right. This concept that the landscape of morality will
dictate where the assets and money end up is very engaging and
exciting. Her information about the Bloomberg functions are
then crucial as we evaluate a company’s performance and
profitability. In order to accurately project a company we need
to utilize the great data and information that Bloomberg has
available to us. Even the supply chain management functions
alone are astounding. I am very excited to have new information
about how to find this data on companies through Bloomberg.
Author 4
Sustainability of Finance
Speaker summary-- Alexis Schwartz
Prof. Werner
Oct 19, 2018
Alexis Schwartz： ESG in Bloomberg
This week, Alexis introduce us ESG overview and
Bloomberg. ESG stands for Environmental, Social and
Governance. Usually, analysist would use top down approach to
look for ESG opportunity and in ESG risk management. There
are 20 trillion dollars potential in ESG industry. 18% of people
care more about ESG factors. Factors considered includes:
carbon footprint, resource use, waste reduction, compensation,
product safety and gender equality.
There is growing evidence that suggests that ESG factors, when
integrated into investment analysis and portfolio construction,
may offer investors potential long-term performance
advantages. ESG has positive influences not only for IRR but
also have high correlation between ESG rating and violatively.
Therefore, in the long run, mutual funds are the largest
investors for ESG.

7. There are several reasons for doing ESG such as want to be
responsible for sustainability, risk management and
management of quality. ESG is intangibles that make up the
highest proportion of corporate value( book value).
Exclusion lists remain the most popular sustainable investment
policy. There are two ways to look at ESG: not to do something
bad or active ESG rating, which is from self-interest loop to do
something good for the planet. Even firms or individuals don’t
have money in the market, it is still possible that can push the
sin industries. But consumer views and practice vary by
country, and they follow the morality by country.
Materiality and transparency are important for ESG. It usually
analyze in a sub-industry level. Materiality means all data point
will going to affect ROE and alpha. Hit rate means the medium
spread: how much better the firm do. The “G”, governance, is
easiest to find data because a good ESG score means more
likely to battle with recession.
ESG is a data science. Smart beta means lower the risk and
increase the earning. It usually known by layer smart beta
strategy. To forecast, analysist need to load all data into a
smart system, then analyze by industrial experts. There are also
scales for transparency to rolling up, if there are no
transparency, the outcome will be negative.
Bloomberg has 5k subscriptions globally, mobile device access
by more than 8 million users a month. ESG product in
Bloomberg started in 2009 with coverage for 3800 companies.
The data sat have grown from 72 to over 900 fields. 12242
customer are using ESG data in 2016.
Governance data is historically the most actively referenced. It
usually better reporting new governance and executive
compensation fields, and increased interest in Board and
company diversity. For example, the proportion of women board
members.

8. Author 5
Sustainability & Finance
Prof. Werner
19 October 2018
Alexis Schwartz – Bloomberg
Alexis Schwartz, a head director at the Bloomberg NYC
branch, presented to our Sustainability & Finance class about
her career and environmental relations. She began her
presentation by giving us her school background; she studied at
NYU Stern and Duke University. From there she worked at
Morgan Stanley (even though it was not a good fit for her) and
learned her role in the ESG department. Now at Bloomberg,
Schwartz heads an entire department focused on Environmental,
Social and Governance for Bloomberg. This department has
three sectors all focusing on sustainability and ethical impact
for the company. Schwartz mentioned how she is very
passionate to be working at a strong company so focused on
ethical impact. Bloomberg strives for “intangible value –
goodwill and reputation, brand equity and proprietary
technology.” The company’s sustainable financial decisions
both set trends for other investors and companies, as well as,
drive the business value and risk management. The Bloomberg
ESG information helps to inform investors across asset classes,
company management, and other companies within the market.
This enables companies to understand their risks and
opportunities both with their impact on other companies as well
as their impact on society and the environment.
Alexis Schwartz focused heavily on the “responsible
investing” and “sustainable impact investing” segments as that
most relates to ESG risk management and opportunities. These
investments, in comparison to other asset class segments, have
seen tremendous growth in recent years. The sustainability
factors and high financial returns have been a key towards
making solutions for climate change, population growth, water

9. shortages, urbanizations, etc. Millennials, Generation X, and
Women have all had a strong impact towards the growth in
capital for these sectors. A chart showed that 61% of investors
(37% are millennials) are already considering ESG during the
investment processes. Assets tied to ESG strategies have also
been increasing. The primary reason for these investments is the
social and moral considerations from investors. All these factors
have made ESG the fastest- growing smart beta strategy in the
market to this date. And yet, 38% of investors have no interest
in environmental investing. The best way to increase the impact
investing is to explain the high returns of investing in this type
of strategy. ESG is important not only to help focus on financial
gain, but also to help with highest proportion of company value
– intangibles. Intangibles, made up of physical, human and
social capital, reputation, brand value, corporate culture and
innovation, are now the main focus from employees at
Bloomberg, as well as other companies, in their bottom-up
approaches towards ratings.
ESG helps provide the backbone on reporting, analysis,
and sustainable information for investors to evaluate companies.
Bloomberg handles massive amounts of data analysis and
provides others with this information to better investing. The
main purpose for Schwartz’ division is to allow investors an
easy way to notice the positive impact of ESG in their
investments.
ESG factors provide a framework for reporting, analysis and a
link to sustainability for companies and investors. At
Bloomberg, Alexis and her team handle massive amounts of
data of analysis. Her job is to explain to people that there will
be a positive outcome if they consider ESG in their investment.
Her clients ask “How does Bloomberg use data to make an
impact from a top down approach?” She reminds them that there
are many values in ESG programs. Investors will reach more
growth, a greater return on capital, better risk management, and
increased management quality.
After listening to Alexis Schwartz’ presentation, I understand

10. the social and financial impact of ESG as well as the motivation
for Bloomberg as a company. The company strives to have an
impact not only within this industry but to help spread
environmental awareness to other industries as well. They want
to have a broad sustainable impact both inside and outside their
boundaries. I want a job there!
Author 1
December 7, 2018
Professor Frank Werner
Sustainable Finance
Speaker Summary: Capital Institute- John Fullerton
John Fullerton, founder and president of Capital Institute,
discussed different ideas of finance. He started out by telling
his background information, which I found interesting. He
showed his passion for sustainability by explaining how after
working in the finance world at JP Morgan for years, he decided
that sustainability was more important. This passion showed
throughout his speech.
An interesting topic John talked about was how everything
is correlated. He showed a voting map from the 2016. The map
shows mostly read in the middle states, with blue on the east
and west coast. He then showed a map of the watershed, which
is the different water lines across the United States. While one
might think that these two things would not correlate, the map
shows that the watershed and voting states are correlated.
Fullerton explained that a lot of people in the middle states are
being killed by the agricultural system, which reflects how they
vote in the presidential election. This showed how everything is
connected to everything.
John expressed this throughout his presentation. He
discussed organized complexity, which is in between classical
physics and statistics. It shows that things that happen are not
“random” like many people say. Things are connected. He said
that people commonly use the phrase “seeing is believing,” but

11. he says that believing is also seeing. Some people believe
something is true but do not see the truth or reason behind it.
He used the example of markets; many people think markets are
a magical tool used to find answers to issues including climate
change. However, this isn’t the case.
He later discussed his latest work: Regenerative
Capitalism. The paper discusses our current world view and
economic system, as well as regenerative economics.
Regenerative economics is application of nature's laws and
patterns of systemic health, self-organization, self-renewal, and
regenerative vitality to socio-economic systems. Usually,
people think sustainability is the best place to be. However,
there’s a step after sustainability which is regenerative. I had
never thought about this idea before, but it makes a lot of sense.
Regenerative is a continuing process. The example he used that
I liked was cancer in the United States. Instead of pouring
billions of dollars into cancer research, we should put that
money into researching and learning how to make our immune
systems healthy. Learning to make our immune systems healthy
is a regenerative idea. The world should be regenerative, and
able to renew itself through generations in a continuing process.
Pope Francis even discussed this alignment with the
regenerative world view in his letter Laudato Si’.
One of my favorite parts of his speech was his story about
his dad. John explained how his dad, who served in Japan,
would never talk about his experience or time in the war.
However, story or question John asked his father, he would turn
it back to the war. The war and the experiences he had there
gave his father’s life meaning. This reminded me of my
grandpa, who also grew up in the same generation. Although he
does not talk about the wars, you can tell that his experiences
there made him the man he is today. John explained how no
generation, including his own, has had a purpose like that
generation had. However, John thinks that our generation is
going to have “real” meaning like his father’s. He explained
how we were born into this purpose, and we should not shy

12. away from the challenge the world holds for us. Our lives have
a purpose, and we are going to discuss our experiences and
purpose like his father talked about the war. As a college senior
with no direction of where I want to take my life, it was
reassuring that John felt he found his purpose in life, even after
working in Wall Street for years. I think our generation, that is
especially overlooked by older generations, will find its purpose
in the world and make positive changes in the world.
Author 2
Speaker Summary – John Fullerton
7 December 2018

13. John Fullerton is the founder of Capital Institute. He worked at
JP Morgan pre-merger. He talked abut his early exposure to
impact investing and how it was controversial at the time of his
exposure. John shared his traumatic experience on 9/11 and how
that experience helped push him towards making a more
positive impact on the world. He believes our economic system
is flawed and wanted to change how the system is run. I think it
makes sense how a traumatic experience like that can change
how you think about the world and this was clearly the case
with John.
Throughout his presentation, it was clear that John was very
passionate about sustainability and his role in helping to
address it. He asked the class what we thought the probability
of a collapse would be within the next half century. And he
asked where that collapse would stem from if it did happen.
This was an important question and I think its important for us
to think about. He talked about the study done at MIT that
talked about the inevitable collapse of a world where population
growth was exponential on a finite planet. This means that
either population growth must stop, or resource throughput must
change and neither of those has happened for us. I feel like
these are things that we do not pay as much attention to as a
society as we should because we just assume things are always
going to work out. This mindset is okay until it no longer holds
true, and that is the path we are approaching if we do not start
to make dramatic changes as John pointed out.
John’s main speaking point was centered around a regenerative
world. His points were different from what he called
mainstream sustainability efforts. While these efforts are
essential, they are insufficient in addressing the challenges we
are facing. He believes are problems are much larger and stem
from systems we currently have in place that must undergo
wholescale changes. The universe is organized complexity. This
entails a combination of classical physics and statistics. He
called for a switch from reductionism to holism in our thinking.
This was another look at how thinks work on a more holistic

14. view. In terms of finance, we currently hold more of a
reductionist view to simplify things that are complicated.
However, this means we do not really have the best
understanding of how everything works together. With the
reductionist view comes unintended consequences that are
hurting us. Therefore the concept of regenerative is so
important.
One of the most important things John discussed throughout his
lecture was changing how we think and the theories we believe.
He compared it to when people believed the Sun revolved
around the Earth or even when people thought the world was
flat. Changing how we think about things and questioning our
beliefs will help us to advance and change for the better.
Sometimes we hold absolute truths that are not true, and we
have to be willing to question those so that we may come out to
the best understanding possible.
There are 8 principles in John’s regenerative economy. He
talked about empowered participation and its relation to the
inequality in our system. He talked about his toes and how their
failure could lead to failure throughout his body, showcasing
the importance of all body parts working together. In our
financial system, inequality does not only hurt those who are on
the low end of the totem pole, but it hurts the system. I thought
this was a very important point because we often think about
inequality as hurting those who are at the bottom. The way John
pointed it out is that inequality is hurting everyone and the
economy as whole. This makes sense and its better because that
places the burden of fixing it upon everyone. Even those who
are not directly affected have incentive to fix it because it will
result in benefits for everyone involved.
I think it was interesting to compare his talk on regenerating to
the C2C concept we talked about a few weeks ago. C2C is a
great concept but, for John, it is not enough. He argues that we
should work to not only reuse materials but to improve upon
them and make them better.
Some quotes I found interesting:

15. You can’t be pessimistic or optimistic, you must put your head
down and work
Stubbornly doubting the absolute truths of others - Socrates
This gives us a purpose that we should not shy away from
Author 3
Professor Werner
Sustainability & Finance
Speaker Reflection
7 December 2018
“Towards a Regenerative World” – John Fullton
John Fullton’s presentation about his life’s work and
passion was inspirational and personal. His story is one that I
hope many people will have someday. A story about how they
wanted to see a positive change in the world and cared so
deeply that they were willing to give up all that they know in
order to find their own passion. Although John’s was initiated
by the tragedy of 9/11, I hope that other people can have life
changing thoughts inspired by less tragic moments. John’s
experience and history in banking provided the background
knowledge of the industry to understand the various areas that
need to change and become more regenerative. It reminds me of
the saying “keep your friends close and your enemies closer”
although he may not have known it at the time, his work for J.P.
Morgan enabled him to be where he is today. As John began

16. speaking about the idea of not just sustainable innovation but
regenerative innovation and changing the dynamic of the world
to represent an organic and living organism, I was amazed and
puzzled. Why have we not thought of this sooner? Nature has
the amazing capacity to find the most efficient and best.
Nothing is a dead end. The earth is connected through billions
of cycles, regions, ecosystems and organisms that are all co-
dependent on one another for their own survival. Nature has
found the best way for the top of the food chain to give back to
the bottom and has truly mastered the idea of a regenerative
cycles of life and growth. Walt Disney was not wrong when
they produced “The Lion King” and spoke so reverently of the
circle of life.
As our human-centered world progressed we were
overcome with ourselves and our own problems. Naively, we
buried our heads in the sand and kept looking inwards for
solutions to world hunger, pollution, consumption, water,
gasoline, modern medicine and more. But, all we have to do is
look up, appreciate what we have around us and learn from the
world around us about how to become the most efficient and
regenerative species on earth. Profit is not what we were made
to create, so why do we care so much about it?
The more John spoke, the more I became on board with the
idea. I know a main contributing factor to my passion and how I
see the world is my faith. And as John described his own
ideology, I saw a man who was describing what he believed in I
saw a man that was describing his faith. John truly believes in
his work, research and understanding of the world as a massive
living system and how physics and science are the truth and
light to fixing the consumption-based system we have created. I
began to think about his idea as it’s own religion and came to
one of the foundational principles that many religions share.
Most religions have an explanation or some type of rational for
why we die. Religion is sometimes said to be a way for people
to overcome their fear of death in hope of salvation and a life
beyond death. In a similar way, John’s idea of regenerative

17. capitalism, economics, society and essentially a regenerative
world is a way to cheat death. Our actions, systems and cycles
will flow into one another in a more natural and succinct way.
We will evade the death of our society and world as we know it,
because at this rate we will not be able to continue in the dame
lifestyle. As I accepted and understood his worldview as a
religion, I came full circle as I remembered John was basing his
entire structure and proposition off the idea of science, physics
and natural systems. I found it ironic that I began the talk with
admiration for science and technical thinking and concluded the
presentation with a great appreciation for God.
Author 4
Sustainability of Finance
Speaker summary-- John Fullerton
Prof. Werner
Dec 7, 2018
Speaker summary : John Fullerton
Tonight, our guest speaker John Fullerton brought us a brand
new perspective and view to consider sustainability and finance.
The topic is “Towards a regenerative world”. In the beginning
of class, we answer two questions. One is how do we the there
will be a destroy possibility happen and other is what is the
potential cause. There are four risks that we consider:
ecological risk, political/social risk, economic risk, and
financial risk.
Einstein said “the theories determine what we can or cannot
observe”. According to John Fullerton, it is a more
philosophical theory than people though.. we need to think the
questions we never thought before. And believing is seeing. The
example is there is two map, one is the voting map and the other
one is the watershed view. These two maps are really similar in

18. their layout. This shows us they are correlate and the agriculture
system destroy plant ecological.
Most of the universe is organized complexity and we can use
physics theory to explain the finance world. The classical
physics, which is single cause. The example is central bank
lower or increase interest rate to accelerate or lower the
economic. Intertwined cause- predictable patterns is the
organized complexity, which means everything is connected like
the maps mentioned before. Another is Statistics which shows
the disconnected causes. It means the uncertainty and the tools
we use.
We should use a new way to think, from reductionist to
holistic, which means the universal principle that explains
matter, life, spirit. For example, Alibaba do not take profits
from the stores directly but get the network benefit. We are not
lining in an era of change, This century is different from last
four centuries, We are living in a change of era. It is a similar
process from medieval era to modern era and modern era to
integral era. Because it is both a way the change the world
view.
Definition of Regenerative Economics is the application of
nature’s laws and patterns of systemic health, self-organization,
self-renewal, and regenerative vitality to socio-economic
systems. Economic is going from degenerative to regenerative
design. Sustainability is in the middle. This is the outcome of
regenerate process but not the goal for regenerative process.
The most important principle in principle of a regenerative
economy is in right relationship. We used to think the order is
planet to economy to finance, which is wrong. The correct
sequence is finance to economy to the planet. The second
important principle is innovative, adaptive and responsive.

19. The five fundamental flaws of modern finance include
finance ideology, confusion of investment with speculation,
limitation of markets that can help solve the climate change
problem, agency problem of misaligned incentive and limits to
investment.