Deutsche Bank Launches Climate Change Initiative
The company's Bank Asset Management division announced Wednesday it hired a new climate change czar and published a white paper focused on the investment opportunities presented by a changing climate. New investment products are expected.
Deutsche Bank is the latest financial giant to look at the climate change as an investment product.
The company's Bank Asset Management division announced Wednesday it hired a new climate change czar and published a white paper focused on the investment opportunities presented by a changing climate.
DWS Scudder, the company's retail asset management division, recently launched the DWS Climate Change Fund, which focuses on companies that are likely to profit from climate change, such as those involved with clean tech, energy efficiency and environmental management.
"These initiatives are designed to strengthen DeAM's position as a leader in the rapidly developing market for climate change products, where we have already raised nearly €6bn in assets under management," said Kevin Parker, Global Head of Deutsche Asset Management and a Member of the Deutsche Bank Group Executive Committee. "We believe the shift away from a carbon-based economy is a mega trend that will shape the asset management industry for many years. We expect return opportunities in sectors like renewable energy, water and agribusiness will justify dedicated strategies, and we believe climate change will be an important consideration for investment decisions."
Mark Fulton, the bank's newly appointed Climate Change Strategist, said governments are creating investable markets, as well as influencing carbon prices which will determine which technologies are viable.
"Companies and investors are quickly realizing that climate change is not merely a social, political or moral issue, but an economic and business issue as well," Fulton said. "This is translating into a wave of investment and innovation."
The company’s white paper, "Investing in Climate Change - An Asset Management Perspective," preaches the understanding of four themes as the basis for an analytical approach to climate change investing. The four themes are government regulation, carbon prices, new technologies and competitive and reputational factors.
"From our analysis we found that for at least the next decade, climate change will affect sectors and stocks as a complex and enduring economic force, which should lead to market inefficiencies and the potential for significant alpha opportunities for institutional and retail investors," Fulton said.
The company's Bank Asset Management division announced Wednesday it hired a new climate change czar and published a white paper focused on the investment opportunities presented by a changing climate.
DWS Scudder, the company's retail asset management division, recently launched the DWS Climate Change Fund, which focuses on companies that are likely to profit from climate change, such as those involved with clean tech, energy efficiency and environmental management.
"These initiatives are designed to strengthen DeAM's position as a leader in the rapidly developing market for climate change products, where we have already raised nearly €6bn in assets under management," said Kevin Parker, Global Head of Deutsche Asset Management and a Member of the Deutsche Bank Group Executive Committee. "We believe the shift away from a carbon-based economy is a mega trend that will shape the asset management industry for many years. We expect return opportunities in sectors like renewable energy, water and agribusiness will justify dedicated strategies, and we believe climate change will be an important consideration for investment decisions."
Mark Fulton, the bank's newly appointed Climate Change Strategist, said governments are creating investable markets, as well as influencing carbon prices which will determine which technologies are viable.
"Companies and investors are quickly realizing that climate change is not merely a social, political or moral issue, but an economic and business issue as well," Fulton said. "This is translating into a wave of investment and innovation."
The company’s white paper, "Investing in Climate Change - An Asset Management Perspective," preaches the understanding of four themes as the basis for an analytical approach to climate change investing. The four themes are government regulation, carbon prices, new technologies and competitive and reputational factors.
"From our analysis we found that for at least the next decade, climate change will affect sectors and stocks as a complex and enduring economic force, which should lead to market inefficiencies and the potential for significant alpha opportunities for institutional and retail investors," Fulton said.
