Alternative Investments: Capital for sustainable development and climate protection

ESG factors play a major role when alternative investments are involved.

Alternative investments have a positive impact on the environment and society and simultaneously achieve attractive returns on investment. In 2012, we marketed a closed-end hydroelectric fund to facilitate investment in this eco-friendly technology, which generates electricity economically at market prices. The strategy of the fund, DWS ACCESS Wasserkraft, is to invest in the development of new, 'small' hydroelectric generating plants in Europe from Norway to Turkey. The fund obtained capital in the amount of 63 million Euros from investors in Germany and Austria. 

In addition, in conjunction with public invitations to tender bids we won the contract as investment manager for a number of investment funds that focus on coping with the consequences of climate change. We structure these products jointly together with our partners and also invest ourselves. These include:

  • the Africa Agriculture and Trade Investment Fund (AATIF),
  • the European Energy Efficiency Fund (EEEF),
  • the Deutsche Bank Masdar Clean Tech Fund, which invests in low-carbon technologies. It concentrates on expanding companies in the renewable energy sector as well as in resource, energy and material efficiency.

EEEF – European Energy Efficiency Fund

The European Energy Efficiency Fund manages assets in the amount of 265 million Euros. It is funded by the European Commission, the European Investment Bank (EIB) and the Italian credit institution Cassa Depositi e Prestiti. The fund facilitates alternative investments in conjunction with municipal projects in Europe aimed at expanding the supply of sustainable energy.

AATIF – Higher incomes, improved food security

The Africa Agriculture Trade and Investment Fund (AATIF) is a public-private partnership that we manage. At the end of 2012, the fund encompassed total assets of 135 million dollars US – including participation of private investors. The goal of the AATIF is to improve the productive efficiency of the agricultural sector in Africa so that the people working in agriculture benefit. In addition, the objectives are to boost incomes in the agricultural sector, increase food security, and improve the competitiveness of local companies.

Low-income countries are largely still exporters of raw materials rather than creating value at a local level. In the African agricultural sector, there are numerous obstacles to overcome, but the sector has huge potential for reducing poverty and contributing towards improved food security. Therefore, the AATIF emphasises generating alternative investments along the entire agricultural value chain.

AATIF was founded by the KfW Development Bank and Deutsche Bank on behalf of the Federal Ministry of Economic Co-operation and Development (BMZ) of Germany. Initial investors were Deutsche Bank, BMZ and KfW.

“We were the first financial institution to draw on financing from the Africa Agriculture and Trade Investment Fund (AATIF), a development fund dedicated to promoting agriculture and trade in Africa. As the AATIF’s manager and PTA Bank’s long-term business partner, Deutsche Bank initiated contacts for us, provided us with funding on good terms and helped us to establish successful business relationships.”

Admassu Tadesse CEO of PTA Bank, Bujumbura, Burundi

More studies can be found at Reports, studies and publications

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